Doing business internationally is part of everyday practice for many companies. Contracts are drawn up in English, counterparties are based in different countries, and disputes do not stop at national borders. In this international playing field, it is essential that disputes are resolved quickly, professionally, and predictably.
Since 2019, the Netherlands Commercial Court (NCC) has played an important role in this regard. This specialised court was established to settle international commercial disputes within the Dutch legal system, but entirely in English. In this first blog, I will discuss what exactly the NCC is and why this court was established. In a subsequent blog, I will explain how to litigate before the NCC.
What is the Netherlands Commercial Court?
The Netherlands Commercial Court is a specialised chamber of the Amsterdam District Court and the Amsterdam Court of Appeal. The NCC handles civil and commercial disputes of an international nature, with proceedings conducted entirely in English. This applies to procedural documents, hearings and judgments.
The NCC has two bodies:
- the Netherlands Commercial Court (NCC) in the first instance, and
- the Netherlands Commercial Court of Appeal (NCCA) for appeal.
Although the working language is English, the NCC is an integral part of the Dutch judicial system. Dutch procedural law applies and judgments are subject to the existing system of recognition and enforcement.
Why was the NCC established?
International competition between legal forums
The Netherlands has long enjoyed a strong position as a forum for dispute resolution. At the same time, international competition has increased. Countries such as the United Kingdom, France and Singapore have established specialised commercial courts to attract international cases.
With the establishment of the NCC, the Netherlands aims to maintain its appeal as a forum for international trade disputes. This means that companies operating internationally do not necessarily have to resort to foreign courts or arbitration institutions.
Litigation in English
English is often the standard language in international contracts. Procedures in Dutch therefore entail additional translation costs and practical complications. There is also a risk that nuances will be lost in translation.
The NCC aligns itself with this international practice by offering parties the option of conducting their dispute entirely in English. This lowers the threshold for foreign parties and promotes efficient litigation.
Specialisation in complex commercial disputes
The cases brought before the NCC are usually legally and factually complex. They concern, for example, international sales agreements, financing structures, shareholder disputes or post-M&A conflicts.
The judges sitting on the NCC are selected for their experience with this type of dispute and their command of the English language. This specialisation contributes to the quality, consistency and predictability of the administration of justice.
When does the NCC have jurisdiction?
The NCC is not automatically authorised to hear a dispute. Parties must explicitly opt for this, usually by means of a forum selection clause in their contract.
In addition, the following conditions apply, among others:
- the dispute is civil or commercial in nature;
- it has an international character;
- the parties are professional parties;
- the proceedings shall be conducted in English;
- The court of Amsterdam has jurisdiction.
If these criteria are not met, the case will be heard by the regular civil division.
Costs and court fees
An important point to note is the court fee. Proceedings before the NCC are more expensive than regular civil proceedings in the Netherlands. This higher court fee is intended to cover the costs of English-language proceedings and specialised judges.
Entrepreneurs would be wise to take these costs into account when choosing a forum. On the other hand, proceedings at the NCC are often efficient and of a high standard in terms of content.
What does this mean for entrepreneurs?
For internationally operating companies, the Netherlands Commercial Court is an attractive alternative to foreign proceedings or arbitration. The combination of a reliable constitutional state, specialised and experienced judges, English-language proceedings and enforceable judgments makes the NCC a serious and practical option when drawing up international contracts.
Conclusion
The Netherlands Commercial Court was established to give the Netherlands a strong position in the international market for commercial dispute resolution. For entrepreneurs with international contracts, the NCC offers an expert, efficient and English-speaking forum within the Dutch legal system. In a subsequent blog, I will discuss the practical question of how you can actually use the NCC and what points to consider in doing so.
