1 / 24

PELSC Construction v. Consumer Law IUS COMMUNE – Workshop Contract Law – 29/11/2007

PELSC Construction v. Consumer Law IUS COMMUNE – Workshop Contract Law – 29/11/2007. Benoît KOHL LL.M. Cambridge Lecturer University of Liège Solicitor (Stibbe Brussels). Background .

brandi
Download Presentation

PELSC Construction v. Consumer Law IUS COMMUNE – Workshop Contract Law – 29/11/2007

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. PELSCConstruction v. Consumer LawIUS COMMUNE – Workshop Contract Law – 29/11/2007 Benoît KOHL LL.M. Cambridge Lecturer University of Liège Solicitor (Stibbe Brussels) 29/11/2007

  2. Background “Recent” development of a specific need to protect the owner against the contractor when the building has to be erected for the occupation of the owner (presumed not be able to protect his own interests) 29/11/2007

  3. Emergence of the ideology of home ownership (cfr Lord Diplock : “(…) the emergence of a property-owning, particularly a real-property-mortgaged-to-a-building-society-owning, democracy”) (Pettitt v Pettitt [1970] AC 777 at 824) 29/11/2007

  4. Some countries of the EU have developed specific rules : ex.: • Belgium : Loi Breyne (1971) • France : The « Code de la Construction et de l’Habitation” : contains specific protection to the individuals in the house building industry • Netherlands: “Nieuw Burgerlijk Wetboek” has been completed by a Statute dated June 5, 2003 (Title 7:12) • Italy « Disposizioni per la tutela dei diritti patrimoniali degli acquirenti di immobili da costruire » (20 June 2005) • Germany: « Makler- und Bauträgerverordnung » (1974) 29/11/2007

  5. Why focus on consumer construction law ? 29/11/2007

  6. Compare with Harmonisation of « classical » construction law : • Examples : • C.E.C. Jansen’s Thesis • PELCS • Works of the GAIPEC • Mathurin Report 29/11/2007

  7. Problems : • A complete harmonisation of “classical” Construction law would suppose that the Member States reach compromises on several points of law that go to the roots of the Private Law of each legal system • (ex: binding character of the offer; the need for consideration; the pre-contractual duty to inform; the reconciliation of the liability in Tort and in Contract; the damages for breach of contract…) 29/11/2007

  8. → Such works are welcomed BUT it seems unlikely that the works currently undertaken could lead in the short or medium term to practicable or concrete results. 29/11/2007

  9. See the Commission’s opinion (Action Plan 2003): • “Further reflection on the opportuneness of non-sector specific measures such as an optional instrument in the area of European contract law » • Current work: C.F.R. 29/11/2007

  10. → Postponement sine die of the adoption of a European Civil Code • (cfr. M.B.M. Loos, Spontane harmonisatie in het contracten- en consumentenrecht, Den Haag, Boom, 2006, p. 31) 29/11/2007

  11. Then : Let’s focus on consumer law. Arguments : • Emergence of cross-border transactions in this field • Development of national protections in the houseconstruction sector : Coherent or not ? 29/11/2007

  12. 3. Dissociation between consumer construction law and classical construction law is possible. • >< PELSC’s approach • → Long-term approach : “Trajan Horse” method (cfr B. Tilleman) 29/11/2007

  13. → preliminary focus on consumer protection : already been suggested by the EU: See a.o. • - Mathurin report (construction) • - Mc. Millan Scott report (crossborder real estate transactions) 29/11/2007

  14. Does such an approach comply with the provisions of the Green Book on the Review consumer acquis ? • EU Commission suggests horizontal measures rather than vertical ones. • BUT several issues regarding the consumer protection in the construction sector are too specific to be caught by a general measure (such as the Unfair Commercial Practices Directive) 29/11/2007

  15. See G. Howells : detailed rules «  can be valuable in targeting particular practices and providing clear guidance on what is acceptable » • (G. Howells, « The Rise of European Consumer Law. Whither National Consumer Law ? », Syndey L.R., 2006, pp. 63 ff., at p. 80) 29/11/2007

  16. EU Consumer law : content de lege ferenda • Scope of the harmonisation : • “Consumer” : private individual who wishes to become the owner of a new home (house or flat) constructed by a professional, regardless of the type of contract, institution or other legal method which may be used to achieve this result. • I.e. : Construction contract, sale “off plan” (or “sleutel op deur”, or “VEFA”,koopaannemingsovereenkomst, “contrat de promotion immobilière”),….. 29/11/2007

  17. Need to take in account, not only Member States’ legislative Acts, but also standard contracts • Importance of Self Regulation in some countries • England : NHBC (+ JCT Forms ?) • Netherlands : GIW (+ UAV ?) 29/11/2007

  18. Consumer’s rights. Short overview 29/11/2007

  19. Formation of the contract • Advertisement : Acquis communautaire • Distance Selling + Door to door : idem (note : need of an extension to the transfer of immovable property) • Contract in writing • Compulsory clauses • Cooling off period ? 29/11/2007

  20. Perfomance of the contract • Stage payments • Guarantee against insolvency • Inspection and Acceptance : assistance by a professional (architect/surveyor/inspector/…) • Exceptio non adimpleti contractus (see art 2:109(6) PELSC : automatic in consumer contracts? ) 29/11/2007

  21. Guarantee against defects • See French Law: mandatory “assurance dommages-ouvrage” • UK – Neth. : NHBC and GIW’s guarantees • Duration ? • Link with builder/promoter’s liability ? 29/11/2007

  22. CONCLUSION 29/11/2007

  23. Specific harmonisation (consumer construction law) is possible and desirable • European principles do exist in this field • Hard law v. Soft law : try out the coregulation method (see White Book on Governance) 29/11/2007

  24. THANK YOU • Benoît KOHL • LL.M. Cambridge • University of Liège • Solicitor (Stibbe Brussels) 29/11/2007

More Related