The Netherlands puts forward bill for collective redress

Through this bill, the parliament aims to find a balance between the interests of injured parties to materialize their rights, and the interests of alleged perpetrators to be protected against unfounded and frivolous claims. If adopted, the bill will make it easier for injured individuals to collectively sue for damages.

Currently, foundation(s) or association(s) making a claim in a Dutch collective action can only seek a declaratory judgment on whether as a general matter the defendant is liable towards the class or classes of victims that they represent. After such a declaratory judgment is made, injured individuals, either individually or jointly, may seek damages through settlement or by commencing additional proceedings on an individual basis. A settlement can be obtained through the highly innovative WCAM-legislation, under which out of court settlements may be certified by the Amsterdam Court of Appeal, declaring a settlement binding upon all parties represented by a representative body. The foundation(s) and association(s) themselves, however, are not eligible to seek damages under Dutch law. Upon adoption of the bill, the current provision that prohibits a collective (monetary) claim for damages will be abolished.

The bill also places demands on representative organisations that wish to bring a claim. If several representative organisations bring a claim alleging to represent similar interests, the Court will appoint one of these organisations to be the lead plaintiff. These requirements have been proposed to protect the interests of the alleged perpetrators. Other specifics of the proposal include an opt-out system and exclusive jurisdiction of the District Court of Amsterdam to handle such collective claims.

If adopted, the bill is expected to further strengthen the lead position of the Netherlands in antitrust damages actions. It is as yet uncertain when this will be the case.