Being a member of the NGB, I was invited earlier this week to participate in an online survey by the Wetenschappelijk Onderzoek- en Datacentrum on the public awareness and use of the Netherlands Commercial Court (NCC). It immediately occurred to me that this is a topic worth writing about in my monthly law blog, as I expect it to be of significant interest to colleagues, friends, and others abroad who may not be familiar with the Dutch civil law system. They may be wondering – especially in the context of negotiating a governing law and jurisdiction clause in a commercial contract – whether it’s a good idea to consider providing for litigation in the Netherlands.
Why? For the same reason that most of us probably avoid dispute resolution in foreign countries: concerns over (perceived) language barriers and unfamiliar legal procedures. However, the NCC was established to address these very concerns and provide an efficient, English-language option for commercial disputes. So, what exactly is the NCC, and why should you consider it for your international legal needs?
1. What is the Netherlands Commercial Court?
The NCC is a specialized court that was established on 1 January 2019 as a division of the Amsterdam District Court and the Amsterdam Court of Appeal. Based in Amsterdam, it handles complex international commercial disputes. What makes it unique is its commitment to conducting proceedings entirely in English. This allows international businesses to participate comfortably while enhancing the efficiency and clarity of the litigation process.
2. Who Can Approach the Netherlands Commercial Court?
The NCC is open to parties involved in international commercial disputes, as long as they agree to litigate before the NCC and the case has a connection to the Netherlands. This connection can be as simple as one party being based in the Netherlands, the contract being governed by Dutch law, or the location of assets in the Netherlands – the ordinary private international law principles apply. The court’s flexibility in accepting cases with international ties makes it an attractive option for cross-border businesses.
The most straightforward way to ensure that potential disputes under a contract are heard by the NCC is to include a dispute resolution clause that explicitly refers to the NCC. The NCC itself recommends using the following model clause:
“All disputes arising out of or in connection with this agreement will be resolved by the Amsterdam District Court following proceedings in English before the Chamber for International Commercial Matters (“Netherlands Commercial Court” or “NCC District Court”), to the exclusion of the jurisdiction of any other courts. An action for interim measures, including protective measures, available under Dutch law may be brought in the NCC’s Court in Summary Proceedings (CSP) in proceedings in English. Any appeals against NCC or CSP judgments will be submitted to the Amsterdam Court of Appeal’s Chamber for International Commercial Matters (“Netherlands Commercial Court of Appeal” or “NCCA”). The NCC Rules of Procedure apply.”
Using this model clause ensures that disputes will be handled by the NCC, providing clarity for all parties that their case will be heard in English by a court specialized in international commercial disputes. Considering the Netherlands – and Amsterdam in particular – as a business and financial hub, this offers a significant benefit for companies doing or intending to do business here.
3. The Costs of Netherlands Commercial Court Proceedings
Certainty about costs is crucial in any walk of life, and the same applies to dispute resolution. For NCC actions, the costs are clearly defined and readily available. The NCC charges an upfront flat court fee, depending on the type of action. As of 2024, the fees are EUR 18,287 per party for NCC District Court proceedings and EUR 24,382 per party for NCC Court of Appeal proceedings. Lower court fees apply to summary proceedings and summary proceedings appeals. These fees are not related to what the case is about or how much money is claimed.
Regarding lawyers’ fees, the unsuccessful party typically bears the costs of the proceedings, which include their own costs and those of the successful party. Parties may make alternative agreements regarding these costs, but if no agreement is reached, the court will assess the fees based on the NCC’s Rules of Procedure. Other costs, such as those incurred for witnesses, are generally borne by the party incurring them.
4. Advantages of Using the Netherlands Commercial Court
The NCC is known for its commitment to delivering swift and efficient justice. Cases are typically resolved within months, with clear timelines established from the outset. This is a significant advantage for companies seeking a resolution to time-sensitive commercial disputes. Another key reason to choose the NCC is its specialized judges, who have extensive experience in handling complex international disputes. This ensures that cases are decided by professionals well-versed in both commercial law and cross-border business practices.
However, perhaps the greatest advantage of the NCC is that it conducts all proceedings in English. For parties unfamiliar with Dutch, navigating legal disputes in a foreign language can be daunting. The NCC removes this barrier, ensuring that all proceedings, documents, and judgments are in English, providing clarity and comfort for international litigants. Note that documents in Dutch, German, or French need not even be translated to be used before the NCC.
When you combine all of this with the efficiency of Dutch judicial procedures, it makes a strong case for suggesting or agreeing to a dispute resolution clause providing for NCC jurisdiction.
5. Enforceability of Netherlands Commercial Court Judgments
NCC judgments, like all other judgments issued by Dutch courts, are enforceable in the European Union under the Brussels I Recast Regulation and within the Kingdom of the Netherlands (including Aruba, Bonaire, Curaçao, Sint Maarten, Sint Eustatius, and Saba) without the need for a declaration of enforceability. This means the judgment is immediately enforceable by the relevant authority, such as a bailiff in the Netherlands.
Enforcement of NCC judgments outside the EU is governed by conventions to which the Netherlands is a party or by general private international law in the jurisdiction where enforcement is sought. Typically, such conventions require a declaration of enforceability by the local court.
6. Conclusion
The NCC provides a modern and efficient venue in the Netherlands for resolving international commercial disputes in a manner that is both accessible and cost-effective for businesses. Whether you are a foreign company looking to resolve a dispute under Dutch law or an international corporation seeking to avoid the challenges of a foreign language, the NCC may be the ideal solution. For more details on how the NCC operates, you can visit the official NCC website. The FAQs, in particular, provide valuable information quickly.
Thoughts, comments or questions? Let me know!
Gundo Haacke, Interim Legal Counsel & Owner of Haacke Commercial Legal Services.
Blog article first published on 27 September 2024.
Image credit: WWW.
Disclaimer
The information provided in this blog article is for general informational purposes only. Nothing contained in this blog article constitutes legal advice, nor is it intended to be a substitute for legal counsel on any subject matter. The author disclaims any liability in connection with the use of this information.
