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 noncompliance. 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 for a penalty payment in preliminary relief proceedings

An order for a penalty payment has the following characteristics:

  • You will need a lawyer to institute proceedings for the imposition of an order subject to a penalty payment for noncompliance, and a bailiff to collect it;
  • A court will only impose an order subject to a penalty payment 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 for a penalty payment 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.

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Assistance after the imposition of an order subject to a penalty for noncompliance

If you engage a lawyer from VIOTTA, you are assured of expert legal guidance. Together with VIOTTA, you will determine whether claiming an order for a penalty payment, 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? Bring in VIOTTA

Are you looking for information about the imposition of an order subject to a penalty for noncompliance 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 we always consider the costs so you will not be confronted with an unpleasant surprise afterwards. Contact us, we are happy to help you further.

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VIOTTA is a law firm based in Amsterdam and is specialized in advising on the areas of corporate law, mergers and acquisitions, contract law and corporate & commercial dispute resolution. We advise in transactional matters.

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