Dutch prejudgment attachment: freezing assets in the Netherlands
Dutch prejudgment attachment is a powerful legal tool to preserve assets before a final court judgment has been obtained. It allows a creditor to freeze assets of a debtor in the Netherlands at an early stage of a dispute.
For international clients, this can be highly relevant where a debtor, counterparty or guarantor has assets in the Netherlands. Dutch prejudgment attachment may be used to secure claims in commercial disputes, M&A disputes, shareholder disputes, warranty claims, unpaid purchase price claims, loan defaults and enforcement matters.
What assets can be attached?
Dutch prejudgment attachment can cover different types of assets. Depending on the circumstances, it may be possible to attach bank accounts, shares in a Dutch company, real estate, vehicles, receivables, dividends or other assets belonging to the debtor.
The purpose is to prevent assets from being transferred, dissipated or made unavailable before the creditor has obtained a judgment or enforceable title.
How does prejudgment attachment work?
A prejudgment attachment usually starts with a petition to the Dutch court. In many cases, the debtor is not heard before permission is granted. This means that the attachment can come as a surprise to the debtor and may create immediate pressure.
If the court grants permission, the attachment is levied by a Dutch bailiff. The creditor must then usually start proceedings on the merits within the period set by the court. If the creditor later obtains a judgment, the attachment can be used as a basis for enforcement.
Relevance for international clients
Dutch prejudgment attachment can be particularly useful in cross-border disputes. A foreign claimant may have proceedings abroad but need to secure assets located in the Netherlands. Conversely, a dispute may involve a Dutch B.V., Dutch bank account, Dutch shares, Dutch receivables or Dutch real estate.
For international companies, investors and shareholders, prejudgment attachment can be an effective way to preserve recovery options and increase settlement leverage. It can also be used as part of a broader enforcement strategy where assets or parties are located in multiple jurisdictions.
Strategic considerations
Prejudgment attachment is a strong measure, but it must be used carefully. The claim must be properly substantiated, the assets must be identified where possible and the requested attachment should be proportionate.
Key questions include whether the Dutch court has jurisdiction to grant leave, which assets can be targeted, whether proceedings on the merits must be started in the Netherlands or elsewhere, and how the attachment fits into the wider dispute or settlement strategy.
Legal support
Dirk de Waard advises international companies, investors, shareholders, directors and founders on Dutch commercial and corporate disputes, including prejudgment attachment, asset preservation, debt recovery, enforcement strategy, M&A disputes and shareholder conflicts involving Dutch companies or assets.
Need to freeze assets or secure a claim in the Netherlands? If you are involved in a commercial, corporate, M&A or shareholder dispute with Dutch assets or a Dutch counterparty, contact Dirk de Waard via dirk.dewaard@viottalaw.com to discuss your position and available options.
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By VIOTTA.
