Court rejects mass claim: business owners remain empty-handed

The Amsterdam District Court recently ruled that energy company Vattenfall had not acted unlawfully towards thousands of business customers. The Nuon Claim Foundation had started a so-called mass claim case against Vattenfall and claimed 400 million euros in damages for unjustly charged costs in the supply of electricity for businesses. In this article you can read more about claiming damages in mass claim cases.

The WAMCA

The Class Action Mass Claims Settlement Act (WAMCA) went into effect on Jan. 1, 2020. This law simplifies the collective settlement of mass damage claims through the Dutch courts. Previously, interest groups in the Netherlands could only seek a declaratory judgment through collective action, but not compensation. Individual claimants then had to go to court themselves to obtain compensation. Since the introduction of the WAMCA, collective claims for damages have been possible.

Fear of ‘American claims culture’

Opponents of the WAMCA initially warned of an “American claims culture,” in which foreign investors would finance claims for damages, resulting in protracted litigation. However, this doomsday scenario, in which Dutch businesses would be inundated with claims, did not materialize. According to the register of mass claim cases, only twenty to thirty cases are initiated each year.

Breakthrough in mass claim land fails to materialize

This ruling was eagerly awaited in the legal community because it was the first case in which damages were claimed under the new law. However, the Amsterdam court did not award compensation. Had the court done so, it might have led to an increase in the number of mass claim cases and the aforementioned doomsday scenario could become a reality. Since this ruling is the first in a series of mass claim cases filed, it remains to be seen whether a real breakthrough will follow.

Advice

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