A German court order takes effect throughout the EU

Many Dutch business owners assume that proceedings in Germany are primarily a German affair. As long as they have no assets in Germany, the thinking goes, a German judgment will have little effect. That is a misconception. Within the European Union, court decisions in civil and commercial matters in principle travel freely across borders.

Recognition without separate proceedings

The Brussels I bis Regulation determines which court has jurisdiction in cross-border civil and commercial matters, and what happens to its decision in the other Member States. The starting point is simple: a decision of a German court is recognised in the Netherlands without any special procedure being required. Nor is a separate declaration of enforceability needed any longer for enforcement. With a certificate from the German court, the creditor can in principle proceed directly to attachment and enforcement in the Netherlands.

Interim measures too

This applies not only to final judgments. Provisional and protective measures, such as a German einstweilige Verfügung (interim injunction) or an Arrest (freezing order), can, subject to conditions, also be recognised and enforced in other Member States. An important condition is that the other party was summoned, or that the decision was served on it before enforcement begins. In addition, there is a European Account Preservation Order, which allows a creditor to have bank accounts in another Member State frozen.

Little room for refusal

The grounds on which a Dutch court can refuse recognition or enforcement are limited. They include, for example, a conflict with public policy, or a default judgment where the defendant did not receive the document instituting the proceedings in time. Whether the German court applied the law correctly is not reviewed again. Anyone who disagrees with a German judgment must therefore lodge an objection or appeal in Germany.

What does this mean for you?

A writ of summons or an application from Germany deserves the same attention as a Dutch document. Ignoring it is risky: a default judgment may later be enforced in the Netherlands. Time limits in German proceedings are also often short. Conversely, the system offers opportunities. A Dutch company with a claim against a German customer can have a Dutch judgment enforced in Germany, and vice versa.

Arrange it in advance

Much debate can be avoided by making a clear choice of governing law and competent court in your contracts. That way, you know in advance where you stand in the event of a dispute and avoid unexpectedly ending up in proceedings across the border. We are happy to advise on this, and we represent you in proceedings in the Netherlands and in Germany.

This article contains general information and does not constitute legal advice. Legislation and case law may change, and the outcome always depends on the circumstances of your situation. For advice on your matter, please get in touch with us.