Netherlands

While the Netherlands currently does not have a U.S.-style class action in place for procedure for damages claims, it is possible to “bundle” individual claims for compensation or to obtain non-monetary relief on a collective basis (e.g., a declaration as to a company’s liability which could then be used as a basis for individual damages claims).  There is also a procedure whereby the Amsterdam Court of Appeal can approve a settlement negotiated between a company and an association or foundation representing a class of persons and declare it binding on those persons on an “opt-out” basis.

Two rulings of the Amsterdam Court of Appeal have now established the international jurisdiction of the Court in collective cases, which can only have a limited relation with the Netherlands and may see the country become an increasingly popular forum for international mass disputes.  In addition, the foundations and associations which represent potential claimants (so-called “claims foundations”) are not subject to adequate regulation. 

There are two types of legal entities that are permitted to submit mass claims to a court: (i) “associations” (“verenigingen”) are legal entities that have members, but cannot have the object of generating income for their members; and (ii) “foundations” (“stichtingen”) which are independent legal entities which pursue the goal set out in their statutes, and cannot distribute profits to third parties (except minor payments to individuals made for ideological or social purposes).

There is also ongoing political pressure on the Dutch government from consumers and shareholders associations to propose new legislation, which would permit them to bring collective damages claims directly in court against companies which do not wish to settle on compensation under the current system.

These issues are of great concern to ILR, as is the increasing (and unregulated) use of third party litigation funding (TPLF).  In response, ILR continues to campaign against the proliferation of mass litigation in the Netherlands and to promote stricter safeguards against law suit abuse.