Termination clauses in agreements and Dutch standards of reasonableness and fairness

How can a party terminate an agreement? With the exception of certain specific agreements (i.e. employment or rent), the Dutch Civil Code (DCC) does not provide rules on termination as such. Whether and under what conditions a party is entitled to terminate an agreement is determined by the agreement itself and the general standards of reasonableness and fairness (“redelijkheid en … Read more

Closing-down sale: turnover tax incurred as a consequence of goods being sold to consumers by way of summary execution does not qualify as estate debt (boedelschuld)

1. Introduction The Amsterdam District Court requested a preliminary ruling with regard to turnover tax incurred as a consequence of a sale taking place by way of summary execution (Amsterdam District Court 5 July 2017, ECLI:NL:RBAMS:2017:4726, answered by the Supreme Court on 15 December 2017, ECLI:NL:HR:2017:3149). 2. Facts Geddes & Gilmore Retail B.V. and Geddes & Gilmore Wholesale B.V. (together … Read more

Supreme Court confirms existing case law – payments in cash for unused leave due to the bankruptcy of an employer are still considered to be estate debts

Introduction On 17 November 2017, the Supreme Court confirmed the existing case law that if employees are entitled to payment in cash for unused leave due to the bankruptcy of their employer, such claims are considered to be estate debts, regardless of when the entitlement to such leave accrued (ECLI:NL:HR:2017:2907). This ruling was given as a response to a request … Read more

Witness examination and the withdrawal of a judge

In its decision of 24 November 2017 (ECLI:NL:HR:2017:3016), the Dutch Supreme Court confirmed that a judge is allowed to critically interrogate a witness and remind a witness of his oath. Such action is not an indication that a judge is not impartial or independent. Fire in a multi-tenant business building A fire destroyed a multi-tenant business building in the Dutch … Read more

Fire, furniture and strict liability for buildings used for business

Persons using a building in the course of running a business might be liable for damage caused by a defect in the building on the basis of strict liability. Such liability exists if there is a link between the origin of the defect and the running of the business. In its decision of 24 November 2017 (ECLI:NL:HR:2017:3016), the Dutch Supreme … Read more

Interest accrued during a suspension of payments does count in bankruptcy

On 24 November 2017, the Dutch Supreme Court ruled that in the event a suspension of payments is converted into a bankruptcy, interest that accrues after the suspension of payments was granted, but before the debtor was declared bankrupt, can be presented to the bankruptcy trustee for verification (HR 24 November 2017, ECLI:NL:HR:2017:2991). The reason for this ruling was a … Read more

Dutch Supreme Court rules on the importance of the judgment of a disciplinary court for the judgment on civil liability

In its decision of 22 September 2017, ECLI:NL:HR:2017:2452 the Dutch Supreme Court ruled that a judgment on civil liability must include sufficiently comprehensible reasons explaining why it differs from a judgment given by a disciplinary court on the same facts. Background of the case The plaintiff had a company that imported flowers from Kenya. Since its formation, the company had … Read more

Judgement beyond the ambit of the legal dispute

In its judgment of 14 July 2017, ECLI:NL:HR:2017:1357 the Supreme Court decided that the pleadings did not provide sufficient basis for the decision of the Court of Appeal that the contractor’s claim was also based on joint and several liability of the alleged client. Moreover, the pleadings provided no evidence that the alleged client acknowledged that the contractor considered the … Read more

Dutch Supreme Court ruled on the time limit under which appeals must be brought

On 1 September 2017, the Dutch Supreme Court ruled that the appeal period ends three months after the day on which the court has given its judgment, at the end of the day with the same number as the day on which the judgment was given (ECLI:NL:HR:2017:2225). However, when the appeal period of three months expires in a month that … Read more

Stibbe hosts annual authors’ conference of the Dutch Company Law Monthly Review (Maandblad voor Ondernemingsrecht)

Each year Maandblad voor Ondernemingsrecht (MvO), a Dutch monthly review of company law, invites its past and prospective authors for an annual meet & greet. This year’s meeting will take place on 21 September 2017 and will be combined with a conference on company law. The speakers and subjects are: Frans Overkleeft – The position of shareholders in listed companies … Read more