collective redress in the netherlands
DESCRIPTION
Collective redress in the Netherlands. Flip Wijers - 13 November 2012. Collective litigation. A foundation or association can initiate collective litigation Existence of similar interests that the plaintiff actively aims to protect ; - PowerPoint PPT PresentationTRANSCRIPT
1
Collective redress in the NetherlandsFlip Wijers - 13 November 2012
2
Collective litigation
• A foundation or association can initiate collective litigation– Existence of similar interests that the plaintiff actively aims to protect;– No extensive description of the ‘class’ is required; – No prior decisions regarding the illigality of the defendants actions is required;– Scope: injunctive and declaratory relief available, no claim for monetary damages;– Binding effect is limited;
• Alternative instruments of collective redress– Alternative instruments are available but often not practical;
• Costs of collective litigation– Not necessarily (much) more expensive than individual litigation;– Loser pays (a little), no contingency fee scheme allowed;
• Prejudicial requests to Dutch Supreme Court
3
Collective Settlements - I
Dutch Act on the Collective Settlement of Mass Claims Amsterdam Court of Appeal can declare a settlement binding on a class,
with a subsequent opt-out possibility for injured parties; Four stages: settlement agreement, petition, opt out period, distribution of
funds;
The Court will test: Whether the group of injured parties is sufficiently sustantive and
identifiable; The representativity of the foundation or association; Whether notification requirements have been met; The reasonableness of the settlement;
4
Collective Settlements - II
Opt out possibility Minimum period of three months; Settlement agreement may provide that if too many injured parties opt out, the
defendant can withdraw from the settlement;
Jurisdiction and notification in international settlements Case law shows that the treshold to accept jurisdiction is low; Notification requirements align with applicable treaties and conventions;
Extraterritorial effect Brussels I Regulation will assist in international enforcement;
Interaction with US settlements post Morrison vs. NAB ‘Foreign purchasers’ are banned from US class actions. The Netherlands is an
alternative for certification of class action settlements.