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2018 | OriginalPaper | Buchkapitel

‘Shadow of the Law’ or ‘Shadow of the Settlement’: Experiences with the Dutch Act on Collective Settlement of Mass Damage (WCAM)

verfasst von : Annie de Roo, Rob Jagtenberg

Erschienen in: Transformation of Civil Justice

Verlag: Springer International Publishing

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Abstract

Public and private justice may not be such mutually exclusive concepts as commonly viewed. Public court judgments may co-determine private settlements, but also conversely, private settlements may co-determine court judgments. The latter phenomenon can be found particularly in mass disputes leading to collective settlements that receive broad media coverage. This contribution analyses the practice in the Netherlands, where such collective settlements can even be endorsed by the courts under the Act on Collective Settlement of Mass Damage, or the WCAM Act. Individual parties that decline such a settlement and prefer to pursue their case in court may nevertheless be confronted with such a private settlement to which they themselves are not a party. The contribution rounds off with a non-exhaustive stocktaking of salient pros and cons of negotiated settlement and law enforcement, respectively.

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Fußnoten
1
The phenomenon of contributory negligence constitutes a good example.
 
2
European Commission Recommendation No. 2013/396 of 11 June 2013 on common principles for injunctive and compensatory collective redress mechanisms in the Member States concerning violations of rights granted under EU Law. OJ 2013, L 201/60.
 
3
Wet Collectieve Afwikkeling Massaschade, wet van 23 juni 2005, Stb. 2005, p. 340.
 
4
Technically, WCAM merely adds some new provisions to the existing Dutch Civil Code (BW) and the Dutch Code of Civil Procedure (Rv).
 
5
Daughters of mothers who had taken diëthylstilbestrol (DES) during pregnancy had developed forms of cancer and as a consequence, they had filed massive lawsuits against the pharmaceutical industry.
 
6
Article 7:907 lid 2 BW.
 
7
Article 7:907 lid 3 BW.
 
8
Article 7:908 lid 1 BW; technically, the settlement constitutes a special category of contract (vaststellingsovereenkomst) that cannot be voided e.g. based on alleged defects in respect of consent. As such, this form of settlement is not enforceable per se.
 
9
For completeness’ sake, mention should be made of a further dispute, i.e. between Dexia bank and the AEGON insurance company, that had been lingering for a while but had been resolved just about the time when Mr. Duisenberg’s mediation took off. Dexia itself had purchased the lease portfolio from AEGON and had intimated they would sue AEGON in turn. In the end, AEGON decided to contribute a considerable sum of money to the settlement fund that Dexia had started to build up.
 
10
Hof Amsterdam 25 January 2007, ECLI:NL:GHAMS:2007:AZ7033; later on, some refinements were made as to the 40/60 ratio by the Amsterdam appellate court in its judgment of 1 December 2009, ECLI:NL:GHAMS:2009:BK4978.
 
11
A quick calculation tells us that hence approximately 130,000–140,000 customers neither joined a collective settlement nor pursued their case in court (in all, nearly 400,000 securities lease contracts had been concluded). This remaining group may have undertaken no action at all—this is a likely outcome in view of the options that were identified in a large-scale Dutch survey of conflict strategies in 2003 (the ‘Dispute Resolution Delta’): about 45% of the respondents in that survey said they would just drop their case. Alternatively, at least some customers in this remaining group may have negotiated an individual settlement with Dexia. Such settlements would likely be governed by a confidentiality clause; hence, nothing can be said about the size, or even the very existence, of this category.
 
12
Hof Amsterdam, n. 17 above, para. 6.6.
 
13
Hof Amsterdam, n. 17 above, para. 5.11.
 
14
Hof Amsterdam, n. 17 above, para. 5.14; emphasis added by the authors.
 
15
HR 13 March 1981 (Haviltex), NJ 1981, 635.
 
16
HR 5 June 2009, ECL:NL:HR:2009:BH2815.
 
17
HR 2009, n. 23 above, at para. 4.4.5.
 
18
The general principle of reasonableness and fairness, which plays an important role in Dutch private law, is not defined exhaustively in the Civil Code, although Article 3:12 BW mentions that current juridical views may be one of the factors to be taken into account in determining what is ‘reasonable and fair’.
 
19
HR 2009, n. 23 above, at para. 4.9.2.
 
20
Hof Amsterdam 8 November 2007, ECLI:NL:GHAMS:2007:BB8135, at para. 4.4 and 4.6.
 
21
HR 2 September 2016, ECLI:NL:HR:2016:2012, at para. 5.2 until incl. 5.7.
 
22
Deducting the 130,000 cases that were presumably dropped from the overall number of 400,000 securities lease contracts gives 270,000 claims that remain.
 
23
The maximum loss for Z amounts to approximately 26 times the amount actually paid (€2.1 million versus €80,000); for the individual consumer, the maximum loss amounts to 40 times the amount actually received (€2000 vs. €50).
 
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Metadaten
Titel
‘Shadow of the Law’ or ‘Shadow of the Settlement’: Experiences with the Dutch Act on Collective Settlement of Mass Damage (WCAM)
verfasst von
Annie de Roo
Rob Jagtenberg
Copyright-Jahr
2018
DOI
https://doi.org/10.1007/978-3-319-97358-6_14

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