Act on collective damages claims
4 December 2019
4 December 2019
Act on collective damages claims will enter into force on 1 January 2020
The Act on collective damages claims (Wet afwikkeling massaschade in collectieve actie or WAMCA) will enter into force on 1 January 2020. This long-awaited date was published today (Staatsblad 2019, 447). The Act was already published on 1 April 2019 (Staatsblad 2019, 130).
The WAMCA will broaden the options for bringing collective actions. It will allow claim vehicles to also seek damages through a collective action. Dutch law currently only allows collective actions to obtain injunctions, declaratory relief or specific performance. The act also introduces a number of safeguards to prevent abuse of the Dutch collective action system, especially in light of the increasing commercial use of collective actions by claim vehicles. Therefore, the act adds stricter requirements for the standing of a claim vehicle. Finally, the act introduces procedural changes intended to enhance the efficiency and effectiveness of these proceedings, including the appointment of an exclusive representative, the consolidation of collective actions if these actions are based on the same events, and the obligation for the parties to try to negotiate a settlement agreement after an exclusive representative has been appointed.
The WAMCA will apply to collective actions brought on or after 1 January 2020 for events that took place on or after 15 November 2016. The old regime will apply to actions that relate to events that took place before 15 November 2016.
Click here for more information about the act in our previous news update.
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