International cases present specific challenges, particularly in the area of applicable law. A recent ruling shows how the legal system deals with these challenges. When victims of investment fraud live abroad, while the recipient of the funds is based in the Netherlands, the question arises as to which law applies. The law of the victim’s country of residence (in this case, the United Kingdom) is then the main rule under private international law because the damage is suffered in the United Kingdom. However, this presents significant complications, such as the need to provide information on foreign law through a cost-prohibitive “legal opinion.”

A pragmatic approach

A recent case before the Central Netherlands District Court found an interesting solution to this problem. The court ruled that, despite the fact that the victims were resident in the United Kingdom, where their assets are located and therefore where (in principle) the damages were suffered, Dutch law still applied. This decision was based on the Rome II Regulation and the Civil Code, which created an opportunity for the court to handle the case in an efficient and practical manner. According to the judge’s reasoning, it is not the location of the assets but the location of the bank account that was used for siphoning off and/or laundering that should be considered. It involved a bank account at ABNAMRO, and this bank is based in Amsterdam. Thus seen, the place where the damage occurred is in the Netherlands.

The benefits of this approach

By applying Dutch law, the following advantages were achieved:

  • It was not necessary to conduct in-depth research into British law, which simplified the procedure considerably.

  • There was no need to obtain a costly legal opinion on British law.

  • The case could be handled more quickly, which is crucial in fraud cases where quick action is required.

This ruling shows that even in complex international cases there are opportunities to bring the case before the Dutch court and have it judged on the basis of Dutch law. This can significantly speed up the procedure and reduce costs.

Read the statement here