Practice area

Liability law

In modern business dealings, liability plays an increasingly important role.

An error is not the same as a successful claim

A damages claim requires assessment of which rule or agreement was breached, to whom the conduct is attributable and what loss is connected with it. Contractual breach may additionally involve default and notice of default. For a tort, relevant factors include the protective purpose of the breached rule and the injured party’s position.

We therefore start with the agreement, correspondence, actual performance and desired outcome. Legal analysis should clarify what remains to be proved and which defences are available. A high loss calculation alone does not make a strong case if the legal basis or causal connection is missing.

Breach of contract and notice of default

Not every disappointing performance is a breach: first establish what was agreed. Specifications, warranties, reservations and the division of responsibilities may be decisive. In services, an obligation to work carefully differs from a specifically promised result.

If remediation remains possible, a clear notice of default allowing a reasonable period may be required. This is not a standard letter working identically in every situation. In Fraanje/Alukon, the Dutch Supreme Court emphasised circumstances including earlier deadlines and the debtor’s response. We therefore also assess whether default has already arisen without notice or another route is appropriate.

Substantiating loss and causation

Compare the actual position with the position that would have existed without the alleged error. What additional costs arose, what revenue was actually lost and what savings offset these amounts? Forecasts must be supported by data and realistic assumptions.

Not every financial disadvantage is recoverable. Attribution, mitigation, contributory fault and deduction of benefits may affect the amount. Expert input may be needed. We connect the calculation with an evidence strategy so that legal arguments and financial substantiation align.

Liability limitations and insurance

A contract may limit liability through a cap, excluded heads of loss or a claim period. First establish that the clause applies and how it should be interpreted. Then assess statutory limits and the circumstances of reliance on it. A limitation in general terms and conditions is therefore not enforceable merely because of its wording.

Also check insurance and notify potential claims promptly. Coverage, deductibles and policy terms are separate matters. Admitting liability or settling without coordination may affect cover. We therefore keep both the liability issue and insurance process in view.

Professional negligence, directors and employers

Professional negligence generally centres on what could be expected of a reasonably competent and reasonably acting professional. An unfavourable outcome does not by itself establish breach of that standard. The engagement, information available and choices open at the time matter.

Directors’ liability follows different standards from the company’s liability. In Ontvanger/Roelofsen, the Dutch Supreme Court distinguished situations in which a director may be held personally liable. A company’s failure to pay is not sufficient by itself.

Employers’ liability also has its own duty of care and allocation of the burden of proof. It is therefore important to identify the precise applicable standard rather than treat every claim under one general heading.

Deadlines and an appropriate solution

Preserve relevant documents as soon as a dispute becomes foreseeable. Duties to complain, limitation periods and contractual expiry periods may operate alongside each other. A general statement that you ‘reserve all rights’ is not sufficient to protect every deadline.

We assess whether negotiation, mediation or proceedings are appropriate. Costs, recovery prospects and the commercial relationship also matter. A court victory has limited value without recovery; timely security may be needed.

Frequently asked questions about liability

Can I immediately stop all payments?

Suspension has its own conditions and must fit the breach and relationship between obligations. Excessive suspension may itself constitute a breach. Have the connection and contractual restrictions assessed.

Does the losing party pay all legal fees?

That is not the starting point in ordinary civil proceedings. Recoverable litigation costs usually follow fixed scales. Different rules apply to certain cases, such as specific IP disputes.

Assessing your claim or defence

Contact us with the relevant agreements, correspondence and loss information. We help make a substantiated choice between remediation, settlement and proceedings.

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