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The Dutch proposal for collective settlements:new trends in multi party actions. An evaluation.

This presentation evaluates the Dutch proposal for collective settlements and its impact on multi-party actions. It discusses the main features, background, comments, and personal observations. It also highlights the need for legislation and the involvement of interested parties in the process.

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The Dutch proposal for collective settlements:new trends in multi party actions. An evaluation.

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  1. The Dutch proposal for collective settlements:new trends in multi party actions. An evaluation. Presentation for the British Institute for International Comparative Law 27th of June 2005

  2. Outline presentation • Main features • Background proposal • Comments • Personal Note

  3. Main features • Collective settlement out of court by defendants and representative organisations (if defendants don’t want to: (almost) end of story) • Parties can jointly ask the judge to aprove it; • Court of Appeal Amsterdam • Damage scheduling; • Opt out possibility;

  4. (Factual) background proposal • 1986: DES litigation • 1992: Supreme Court ruling ‘a rainmaker’ • DES Register Centre: 18.000 in 6 weeks • 440.000 (220.000 DES mothers; 110.000 doughters and sons) • 1999: DES Fund and settlement (€ 34 million)

  5. (Judicial) background proposal • Dutch Law: only collective actions for injunctive relief and ‘declarations’ • Initiated by representative ‘interest organisations’ • No ‘damages’ class/collective actions • Defendants want final settlement • (not ad hoc) Legislation is needed

  6. (Political) background proposal • Public (and thus political) pressure to resolve the DES matter • Preparation of proposal • Consulations with ‘interested parties’ • Not with Dutch Consumer Organisation • January 2004: presentation of proposal on Collective Settlements • Summer 2005: unacted • 2006 (20 years later): start of distribution

  7. The comments • Judiciary: ‘not amused’ • The Bar: different reactions • Nice • Nice but useless • Consumer organisation: ‘angry and disappointed’

  8. Personal note • Two determinants: • Working Group (the Dutch ‘troika’) Fundamental revieuw of the Dutch law of civil procedure • PhD • Working Group suggestions • Involve judiciary in pre-action stage • Less codification: more flexibility

  9. Personal note • PhD • See previous • Focuss on really important matters like dealing with the ‘limited fund’-issue • Pay attention to the invluence of (financial) incentives and the dynamics of collective settlements; they generate volume • Consider the possibilities of ‘private law enforcement’ in ‘no bother cases’ (or large scale small claim litigation)

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