Collective Redress and Private International Law in the EU

This book specifically covers issues regarding jurisdiction and the recognition and enforcement of judgments in cross-border mass disputes relating to financial services. Collective redress mechanisms, legal mechanisms which can be used to resolve mass disputes collectively, are growing more important. Due to the global increase in cross-border trade and financial transactions, the number of cross-border mass disputes has increased. In the EU, several prototypes of collective redress mechanism exist that can be used to resolve mass disputes and, aside from the EU's recommendation on the drafting of laws relating to collective redress, a reevaluation of the Brussels Regulation has also taken place as on 10 January 2015 the Brussels I-bis Regulation replaced the old Brussels Regulation dating from 2000. In spite of a minor reference to collective redress in the Commission proposal, Brussels I-bis does not contain any provision relating to collective redress. As a result, many questions regarding cross-border mass disputes and the relevant private international law issues remain unanswered and unresolved. This book sets out to describe the most important prototypes by referring to actual collective redress mechanisms. In addition, it also sets out how parties to such mass disputes can confer jurisdiction to courts in the EU and what the various pitfalls are. Moreover, the rules concerning the recognition and enforcement of judgments originating from a collective procedure are listed. As cross-border collective redress mechanisms and the rules of private international law to be used in such a context are still being developed, the goals of private international law and the goals of the referred collective redress mechanisms are analysed to provide an insight into how these sets of rules should and could be employed. This book is primarily aimed at researchers, practitioners and lawmakers actively involved in and/or professionally interested in the field of private international law and collective redress mechanisms and should prove very useful in providing them with a greater in-depth understanding of the issues at hand. Thijs Bosters is a law clerk at the Dutch Supreme Court. Prior to his work at the Supreme Court, he was an attorney-at-law with NautaDutilh in The Netherlands, where he worked in the Litigation & Arbitration department.-- Provided by publisher Contents 7 Glossary/Abbreviations 13 1 Introduction 14 Abstract 14 1.1 Collective Redress and Cross-Border Mass Disputes 14 1.2 Parameters of This Book 17 1.3 Book Structure 21 1.4 Typologies/Classifications of Collective Redress Mechanisms in the EU 22 1.4.1 Public Law Mechanisms and Private Law Mechanisms 22 1.4.2 Aggregate Litigation and Representative Litigation 24 1.4.2.1 Model or Test Case 26 1.4.2.2 Collective Action 26 1.4.2.3 Collective Settlement 27 1.5 Goals of Collective Redress Mechanisms 27 1.5.1 Introduction 27 1.5.2 Efficient Legal Protection 28 1.5.3 Effective Legal Protection 30 1.5.4 Reduction of the Administrative Burden on the Judiciary 30 1.6 Goals of the Brussels Regulation 31 1.6.1 Introduction 31 1.6.2 Free Movement of Judgments 32 1.6.3 Rights of the Defence 32 1.6.4 Legal Certainty 33 1.6.5 Resolving a Dispute Before an Appropriate Court 34 References 35 Collective Redress Mechanisms in the EU 37 2 German KapMuG Procedure 38 Abstract 38 2.1 Introduction 38 2.2 Deutsche Telekom and KapMuG History 40 2.3 How a KapMuG Procedure Is Initiated 42 2.4 What Plaintiffs Can Achieve Through a KapMuG Procedure 44 2.5 Recent Experience with the Act, and Future Developments 44 References 45 3 Dutch Collective Action 46 Abstract 46 3.1 Introduction 46 3.2 History of Collective Action 47 3.3 Parties That Can Bring a Collective Action? 48 3.4 Criteria for Bringing a Collective Action 49 3.5 The Result of Bringing a Collective Action 50 3.6 Recent Experience with Collective Actions 52 3.7 Future Developments 53 References 55 4 Dutch WCAM Procedure 57 Abstract 57 4.1 Collective Settlement History 57 4.2 The Conditions for Arranging a WCAM Settlement 58 4.3 What Can Eventually Be Achieved with a WCAM Settlement 60 4.4 WCAM Case Law 60 4.4.1 Dexia Case 61 4.4.2 Vedior Case 62 4.4.3 Shell Case 62 4.4.4 Converium Case 64 4.5 Current and Future Developments 66 4.5.1 Amendments to the WCAM 66 4.5.2 Preliminary Questions Supreme Court 67 References 69 Jurisdiction in Cross-Border Mass Disputes 70 5 Jurisdiction and the KapMuG 71 Abstract 71 5.1 Introduction 74 5.2 Submission 75 5.3 Jurisdiction in Consumer-Related Matters 77 5.3.1 Application of Chapter II, Section 4 Brussels I-Bis 77 5.3.2 Jurisdiction in KapMuG Procedure Relating to Financial Products 80 5.4 Choice of Forum Agreement 81 5.4.1 Choice of Forum Agreement in Consumer-Related Matters 82 5.4.1.1 Choice of Forum Agreement Before the Dispute Arises 84 5.4.1.2 Choice of Forum Agreement After the Dispute Has Arisen 85 5.4.2 Choice of Forum Agreement in Non-Consumer-Related Matters 86 5.4.2.1 Choice of Forum Agreement and the Underlying Financial Product 87 5.4.2.2 Choice of Forum and the Holding of Shares 89 5.4.3 Conclusion 90 5.5 General Provision 91 5.6 Jurisdiction in Contractual Matters 92 5.6.1 Various Places of Performance 94 5.7 Jurisdiction in Tortious Matters 95 5.7.1 Place Where the Harmful Event Occurred or May Occur 96 5.8 Effect of Grounds of Jurisdiction on the Goals of Collective Redress 100 5.8.1 Effective Legal Protection 100 5.8.2 Efficient Legal Protection 103 5.8.3 Administrative Burden of the Judiciary 105 References 107 6 Jurisdiction and the Dutch Collective Action 108 Abstract 108 6.1 Introduction 108 6.2 Submission Rule 110 6.3 Jurisdiction in Consumer-Related Matters 111 6.4 Choice of Forum Agreement 112 6.4.1 Mass Dispute Relating to a Financial Product 113 6.4.1.1 Third Parties and Choice of Forum Agreements 114 6.4.1.2 Separate Choice of Forum Agreement 116 6.4.2 Securities Mass Dispute 116 6.5 General Provision 117 6.6 Jurisdiction in Contractual Matters 117 6.7 Jurisdiction in Tortious Matters 119 6.8 Effect of Grounds of Jurisdiction on the Goals of Collective Redress 121 6.8.1 Effective Legal Protection 121 6.8.2 Efficient Legal Protection 123 6.8.3 Administrative Burden of the Judiciary 124 6.9 Conclusions 125 References 125 7 Jurisdiction and the WCAM 126 Abstract 126 7.1 Introduction 126 7.2 Procedural Role of Parties and Applicability of the Brussels Regulation 128 7.3 Submission Rule 130 7.4 Jurisdiction in Consumer-Related Matters 132 7.5 Choice of Forum Agreement 133 7.5.1 Choice of Forum Agreement Between the Victims and the Perpetrator 134 7.5.2 Choice of Forum Agreement as Part of the Settlement Agreement 135 7.6 General Provision and Co-Defendants 136 7.6.1 Co-Defendants Pursuant to Article 8(1) Brussels I-Bis 140 7.7 Jurisdiction in Contractual Matters 141 7.8 Jurisdiction in Tortious Matters 144 7.9 Effect of Ground of Jurisdiction on the Goals of Collective Redress 144 7.9.1 Effective Legal Protection and Finality 145 7.9.2 Efficient Legal Protection 146 7.9.3 Administrative Burden of the Judiciary 148 7.9.4 Conclusion 148 References 149 8 Parallel Proceedings 151 Abstract 151 8.1 Introduction 151 8.2 Lis Pendens 152 8.2.1 Requirements 152 8.2.2 Application of Lis Pendens Rule to Collective Redress Mechanisms 153 8.3 Related Actions 156 8.3.1 Requirements 156 8.3.2 Application of Related Actions Rule to Collective Redress Mechanisms 157 8.4 Conclusions 160 8.5 Parallel Proceedings and Collective Redress Goals 160 References 163 9 Goals of the Brussels Regulation Regarding Jurisdiction 164 Abstract 164 9.1 Interim Conclusions Regarding Jurisdiction 164 9.2 Goals of the Brussels Regulation 165 9.2.1 Legal Certainty 165 9.2.2 Most Appropriate Court 168 9.2.3 Preliminary Conclusions 170 Reference 171 Recognition and Enforcement of Foreign Collective Redress Judgments 172 10 Recognition and Enforcement of KapMuG Judgments 173 Abstract 173 10.1 Introduction 175 10.2 ‘Judgment’ or Court Settlement? 176 10.3 Non-Recognition and Non-Enforcement of a KapMuG Judgment 178 10.3.1 Public Policy 179 10.3.2 Defaulting Defendant 181 10.3.3 Irreconcilable Judgment 182 10.3.4 Conflict with a Judgment Given in Another Member State 184 10.3.5 Summary 185 10.4 Goals of Collective Redress 186 References 187 11 Recognition and Enforcement in Relation to a Collective Action Procedure 188 Abstract 188 11.1 Introduction 188 11.2 Cross-Border Effect on Third Parties 189 11.3 Enforcement in a Collective Action Procedure 192 11.4 Non-Recognition and Non-Enforcement in a Collective Action Procedure 192 11.4.1 Defaulting Defendant 193 11.4.2 Public Policy 194 11.4.3 Irreconcilable Judgment 195 11.4.4 Conflict with Judgment Given in Another Member State 196 11.4.5 Summary 197 11.5 Goals of Collective Redress 198 References 200 12 Recognition and Enforcement of a WCAM Judgment 201 Abstract 201 12.1 Introduction 201 12.2 ‘Judgment’ or Court Settlement 202 12.3 Enforcement of a WCAM Judgment 205 12.4 Non-Recognition and Non-Enforcement of a WCAM Judgment 205 12.5 Defaulting Defendant 205 12.5.1 Public Policy 207 12.5.2 Irreconcilable Judgment 211 12.5.3 Conflict with Judgment Given in Another Member State 211 12.5.4 Summary 212 12.6 Goals of Collective Redress 213 References 214 13 Goals of the Brussels Regulation Regarding Recognition and Enforcement 215 Abstract 215 13.1 Interim Conclusions Regarding Recognition and Enforcement 215 13.2 Goals of the Brussels Regulation 216 Making Cross-Border Collective Redress Possible 220 14 Summary 221 Abstract 221 14.1 Typologies of Collective Redress Mechanisms 221 14.2 Application of the Rules on Jurisdiction 223 14.2.1 KapMuG Procedure 223 14.2.2 Dutch Collective Action 225 14.2.3 WCAM Procedure 226 14.2.4 Lis Pendens Rule 226 14.3 Application of the Rules of Recognition and Enforcement of Foreign Judgments 227 14.3.1 KapMuG Procedure 227 14.3.2 Collective Action 228 14.3.3 WCAM Procedure 228 14.4 Principles of Collective Redress and the Brussels Regulation 229 14.4.1 Principles of Collective Redress 230 14.4.2 Goals of the Brussels Regulation 233 14.5 Applicability of Brussels Regulation and Recommendations 235 Reference 239 15 Relevant Developments and Possible Future Research 240 Abstract 240 15.1 Introduction 240 15.2 Consultation ‘Towards a Coherent Approach to Collective Redress’ 241 15.3 Recommendation ‘Towards a European Horizontal Framework for Collective Redress’ 243 15.4 IBA Guidelines 245 15.5 Insolvency Regulation 245 15.6 Alternative Solutions and Possible Future Research 247 References 250 Bibliography 251 Case Law 259 Curriculum Vitae 263 Index 264 Front Matter....Pages i-xv Introduction....Pages 1-23 Front Matter....Pages 25-25 German KapMuG Procedure....Pages 27-34 Dutch Collective Action....Pages 35-45 Dutch WCAM Procedure....Pages 47-59 Front Matter....Pages 61-61 Jurisdiction and the KapMuG....Pages 63-99 Jurisdiction and the Dutch Collective Action....Pages 101-118 Jurisdiction and the WCAM....Pages 119-143 Parallel Proceedings....Pages 145-157 Goals of the Brussels Regulation Regarding Jurisdiction....Pages 159-166 Front Matter....Pages 167-167 Recognition and Enforcement of KapMuG Judgments....Pages 169-183 Recognition and Enforcement in Relation to a Collective Action Procedure....Pages 185-197 Recognition and Enforcement of a WCAM Judgment....Pages 199-212 Goals of the Brussels Regulation Regarding Recognition and Enforcement....Pages 213-217 Front Matter....Pages 219-219 Summary....Pages 221-239 Relevant Developments and Possible Future Research....Pages 241-251 Back Matter....Pages 253-268