Recent judgements of the Netherlands Commercial Court – NCC clause, COVID-19, share the pain approach and more
On 14 and 29 April 2020, the Netherlands Commercial Court (NCC) rendered judgement in preliminary relief proceedings involving a M&A transaction about (i) the validity and scope of an NCC clause and (ii) the mitigation of an agreed break-up fee due to the COVID-19 outbreak. Our colleagues Mijke Sinninghe Damsté and Marit Bosselaar discuss both judgements in the Dutch corporate law journal Ondernemingsrecht.
In their annotation, Mijke and Marit elaborate on some interesting aspects of the case for both the litigation and M&A practice and discuss our firms experience with the NCC. Read the annotation from Mijke and Marit below or click here (Dutch only).
COVID-19 outbreak and break-up fee
The COVID-19 outbreak has a significant (legal) impact on many businesses and contracts, also in the M&A practice. The fifth judgement of the NCC is one of the first published COVID-19 related commercial cases. For more information on the judgement of 29 April 2020 of the NCC on the enforcement of the break-up fee in COVID-19 circumstances click here. Our firm closely monitors legal developments regarding the COVID-19 outbreak.
In January 2019, the NCC legislation came into force and the NCC officially opened its doors. The NCC is an international commercial division of the Amsterdam District Court (NCC District Court, including the Court in Preliminary Relief Proceedings) and the Amsterdam Court of Appeal (NCC Court of Appeal) where parties can litigate in English. In short, the NCC aims at efficient, fast and predictable handlings of large, complex cases by expert and specialised judges. With its own rules of procedure, the NCC combines the highly regarded Dutch court system with a flexible focus on global best practices as the NCC rules of procedure are based on the rules of procedure that are used in other commercial courts and arbitration institutions.
The NCC is an exciting and promising new development in the Dutch and international court systems. In practice, parties are increasingly willing to explicitly opt for the NCC and litigate in English (which is required for the NCC to handle a case), not only in transaction documentation but also afterwards (after a dispute occurred). For more information about the NCC click here and here.
Interested to learn more about the NCC or to bring your dispute before the NCC? Our firm has vast experience with M&A-related litigation and a dedicated team that deals with matters concerning the NCC. Please do not hesitate to contact Mijke Sinninghe Damsté or Marit Bosselaar for further information.