The purpose of a penalty payment is to link a financial incentive to a certain effort. This “effort” may consist of doing something or refraining from doing something. In preliminary relief proceedings, an order (to do something) or a prohibition (to refrain from doing something) is often claimed.
At the request of the claimant, the judge in preliminary relief proceedings will impose an order subject to a penalty for non-compliance. This order may consist of the payment of an amount per violation or the payment of an amount for a certain period during which a violation is committed. This ensures that the order of a court decision will actually be complied with.
Scope of an order subject to a penalty in preliminary relief proceedings
An order subject to a penalty has the following characteristics:
- You will need a lawyer to institute proceedings for the imposition of an order subject to a penalty payment for non-compliance, and a bailiff to collect it;
- A court will only impose an order subject to a penalty on request;
- The limitation period for a forfeited periodic penalty payment is short: a periodic penalty payment lapses after only six months; and
- The (short) limitation period of a forfeited penalty may be extended by means of so-called “interruption”.
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VIOTTA supports your company in instituting and claiming a penalty payment
VIOTTA’s litigation lawyers have extensive experience in litigation, both in a national and in an international context. They know the tricks of the trade and they know like no other how to institute an order subject to a penalty and how to claim forfeited penalty payments. VIOTTA works closely with various bailiffs in the Netherlands. And if the penalty has to be collected abroad, VIOTTA can rely on the expertise of fellow lawyers in its international network.
Assistance after the imposition of an order subject to a penalty for non-compliance
If you engage a lawyer from VIOTTA, you are assured of expert legal guidance. Together with VIOTTA, you will determine whether claiming an order subject to a penalty, for example through preliminary relief proceedings is a wise choice. Has the other party forfeited penalties? In that case, VIOTTA can assist you in collecting them.
Need advice in the event of penalty payments? VIOTTA is here for you
Are you looking for information about the imposition of an order subject to a penalty for non-compliance or the collection of penalty payments? Contact the litigation lawyers of VIOTTA. Thanks to our specific expertise and many years of experience, we know exactly how to resolve the most complex cases in your favour. And always taking into account the costs, so you will not be confronted with an unpleasant surprise afterwards. Contact us, we are pleased to help you.
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VIOTTA is a law firm based in Amsterdam, specialising in providing advice in the areas of corporate law, mergers and acquisitions, contract law and corporate & commercial dispute resolution. We advise in transactional matters and litigate in commercial disputes. VIOTTA provides legal advice to its clients on Dutch corporate law matters, such as corporate governance, board structures, directors’ duties and liabilities, joint ventures and other collaborations. VIOTTA advises purchasers, sellers, management and other stakeholders in domestic and cross-border mergers and acquisitions (M&A).