Kernkamp Advocaten offers professional debt collection services for any size commercial debts in The Netherlands. The firm has ample experience in collecting outstanding debts for our international client base and is committed to pursue debtors in The Netherlands quickly and efficiently to ensure a maximum return at a minimum cost.

Why use a Netherlands Law Firm?

It's a fact that both consumers and companies experiencing financial difficulties will normally prioritise their creditors for payment. This suggests those creditors who demonstrate the seriousness of continued non-payment are most likely to be paid first.

The use of a local Dutch Law Firm is an excellent way of demonstrating the seriousness with which you will pursue continued non-payment of an account. We can take them to court in their own jurisdiction, and the debtor knows it. Making use of our services is one of the most efficient and cost-effective ways of prioritising an account for payment and recovering bad debt.

What we do to recover your debts

Before starting the collection procedure, we will check the information supplied. Normally, we only require the identity of the debtor and details of the debt (for example, copy invoices) in order to initiate recovery.

Assuming that the information is sufficient to enable us to proceed, We obtain payment of your overdue accounts using an established combination of letters, faxes, emails and telephone calls each aimed at bringing about the early settlement of your account. Where appropriate, we will agree to a payment scheme with the debtor and monitor the fulfillment of this scheme. In such case you will receive regular quarterly updates on the debt recovert. Most assignments are completed at this stage without further litigation.

Should these initial steps fail to result in payment of the claim, we will, with your prior consent, take appropriate legal action, and initiate legal proceedings.

No cure, no fee

Our no cure, no fee structure is transparent. If and when our intervention is succesful, we will charge the following scale fee:

These scale fees relate to undefended cases. Where a case is defended or contentious, or requires additional input, such as settlement negotiations, our fees will be calculated in accordance with time spent in dealing with the case, or in an alternative manner, to be discussed beforehand with you after it has become apparent that the opposing party raises defences.

VAT

The above costs are exclusive of VAT.

Disbursements

For each debt recovery (cure or no cure), we will charge the actual disbursements made with your prior consent, like bailiff's fees and court charges. We reserve the right to request a retainer to guarantee the firms disbursements before initiating proceedings.

Cost effective service

In as far as is possible we will also collect interest, legal penalties and charges from the debtor, in order to ensure that successful debt collection is a cost effective or even beneficial exercise for the client.

Arbitration has become a widespread and preferred method of resolving disputes in many industries, such as the maritime, securities and construction industries. Less formal than court proceedings, arbitration is supposed to be quicker and more cost effective. Another useful advantage of arbitration is the better enforceability of arbitration awards internationally. Whatever the reason, parties nowadays tend to agree on arbitration on a wide scale.

New York Convention on Arbitration

The Netherlands is a party to the New York Convention on arbitration and arbitration awards. As a consequence the Dutch Courts are bound to recognize an agreement in writing in which the parties undertake to submit to arbitration should any disputes arise between them. At the request of one of the parties the Court will refer the parties to arbitration in a matter in respect of which the parties have made an arbitration agreement, unless it finds that the said agreement is null and void, inoperative or incapable of being performed.

The Convention provides that each Contracting State shall recognize arbitral awards as binding and enforce them in accordance with the rules of procedure of the territory where the award is relied upon, under the conditions laid down in the following articles. Arbitral awards rendered in other Contracting States are recognised and enforceable in The Netherlands and vice versa. The convention has been implemented in Dutch legislation, more specifically in the 1986 Arbitration Act (Section 1020-1076 of the Dutch Code of Civil Procedure).

Ad hoc and Institutional Arbitration

As in other jurisdictions the parties may opt for ad hoc arbitration or institutional arbitration. There are various arbitration institutes in The Netherlands to opt for, but ad hoc arbitration remains a good and legally sound alternative.

Properly structured, ad hoc arbitration should be less expensive than institutional arbitration and, thus, better suit smaller claims and less affluent parties. Ad hoc arbitration places more of a burden on the arbitrators to organize and administer the arbitration in an effective manner. A distinct disadvantage of the ad hoc approach is that its effectiveness may be dependent upon the willingness of the parties to cooperate and the talents of the appointed arbitrators to keep the arbitration process going.

An institutional arbitration is one in which a specialized institution with a permanent character intervenes and assumes the functions of aiding and administering the arbitral process, as provided by the rules of that institution. Often, the contract between the parties will contain an arbitration clause which will designate an institution as the arbitration administrator. If the institutional administrative charges, which may be substantial, are not a factor, the institutional approach is generally preferred.

The Netherlands Arbitration Institute

The Netherlands Arbitration Institute was established as a non-profit foundation in 1949. Its Governing Board consists of representatives from the business community and the legal profession, as well as members of the judiciary, all of whom have extensive experience in the fields of arbitration, binding advice and mediation. The Governing Board also includes representatives from the Dutch Central Chamber of Commerce in The Hague, the Dutch Organisation of the International Chamber of Commerce and the Dutch Association for Industry and Trade, and Accountancy. The secretariat is located in Rotterdam.

The NAI administers arbitration pursuant to the 2001 NAI Arbitration Rules. Binding advice proceedings are also administered pursuant to the same Rules, while mediation is administered pursuant to the 2009 NAI Mediation Rules.

Transport And Maritime Arbitration Rotterdam-Amsterdam TAMARA

The Dutch Legal Community realised that there was a need for quality arbitration in Maritime and International Trade Issues. The foundation "Stichting Transport and Maritime Arbitration Rotterdam-Amsterdam (TAMARA)" for arbitration in transport cases was established in 1988 by Dutch maritime lawyers and interest groups in the fields of shipping, transport and international commerce. Over the past years, the TAMARA foundation has become a well-established arbitration board, in particular in Dutch maritime circles, and is a well known alternative for settling disputes by means of arbitration.

Disputes that are commonly handled by the TAMARA foundation are disputes relating to shipbuilding (yachts, freighters, drilling platforms), financing and insurance, chartering, cargo claims, stevedore and agency services, physical distribution and ship broker’s services, as well as relating to other modes of transport.

Arbitration via the TAMARA foundation has increasingly become an alternative for traditional court procedures and for the London arbitration. Arbitration via the TAMARA foundation offers settlement of disputes at least the same standard as a traditional court procedure or the London arbitration, but within a significantly shorter period of time and at considerably lower cost. In order to enhance these goals, the TAMARA rules were revised in 2008. They provide a tight, modern procedure, enhancing speed and efficiency.

Other Arbitration Institutions

The two Arbitration Institutions discussed above, are just two of the many Arbitration Institutions in The Netherlands. Our lawyers assist our clients before a huge number of other Arbitration Institutions, amongst which the Arbitration Board for the Building Industry in the Netherlands, that traditionally arbitrates a majority of the building conflicts in The Netherlands. Another industry where a lot of disputes are resolved through arbitration is the Health Care Industry. The Dutch Forwarders Association FENEX also avails over its own Arbitration Institution, not unlike a lot of other sector specific associations.

Further information

Arbitration in The Netherlands is a reliable option to resolve conflicts. Kernkamp Advocaten assists clients from all over the world. The firm offers services that are reliable, efficient and professional, and tailored to meet the needs of our clients.

Should you be looking for representation in arbitration proceedings in the Netherlands, or you query the validity of an arbitration clause, our firm of experienced professionals can provide you with an excellent and cost effective service. For further information, please feel free to contact our Arbitration contact person. Your questions are always welcome.

Civil law country

The Kingdom of The Netherlands has a civil law, as opposed to a common-law, system and the procedure before the Dutch Courts is essentially carried out by the parties filing, through their lawyers, written submissions. Verbal hearings do take place, but play a relatively minor role in civil litigation. All cases are decided by professional judges. It is not possible to ask for a jury trial.

Court of first instance

The lower Court of first instance is the Cantonal Court, that basically deals with small claims, disputes regarding leases of residential and business premises and employment cases. The higher Court of first instance is the District Court, where parties need to be represented by a Dutch registered lawye. There are 19 District Courts in the Netherlands.

Appeal

Appeals against decisions of the Courts of first instance are heard by one of five Courts of Appeal and further appeals (solely on points of law) are dealt with by the Netherlands Supreme Court in The Hague.

Initiation of proceedings

Dependent on the nature of the case, proceedings are initiated by issuing a writ of summons (which is done by a balilff) or by filing an application. In the summons procedure the case is pending from the date of the summons. The writ must be served at the office of the clerk of the court by the claimant by the last day on which the office is open prior to the cause list date indicated in the summons procedure. The clerk of the court enters the case to the cause list of a single chamber.

In an application procedure the case is pending from the moment when the application is lodged with the office of the clerk of the Court.

Recovery of legal fees

Each party initially bears its own costs. In ordinary civil cases, the losing party must bear the legal costs as fixed by the court, which is in most cases substantially lower than the actual legal costs.

Contingency Fees

Contingency Fee arrangements are forbidden. However, balanced success fees are possible.

Further information

If you have any questions regarding litigation in The Netherlands, you are welcome to contact our litigation contact person.

Kernkamp Advocaten defends all types of liability matters, based on tort, contract and quasi-contract. Product liability also forms part of our practice, where we represent many international clients before the Dutch Courts.

The Practice Group focuses on:

• Product liability
• Insurance Coverage
• Post-Sale-Duty-To-Warn Counseling
• Directors’ liability
• Professional liability of brokers
• Professional liability of lawyers
• Professional liability of civil-law notaries

Further information

For additional information please contact us. Your comments and questions are always welcome. Please feel free to contact the Insurance and Liability Practice Group contact person.

Related:

• Debt collection in The Netherlands
• Arbitration in The Netherlands
• Litigation in The Netherlands
• Insurance and Liability Law