Determining a court's jurisdiction in cross-border class actions involving pure financial damage has proven difficult in practice. This is particularly true when jurisdiction is based on the special competence rules set out in the recast EU Brussels Regulation. The Dutch Shareholders Association v British Petroleum is a good example of the confusion surrounding this matter. After two lower court rulings, the Dutch Supreme Court has applied to the European Court of Justice for a preliminary ruling to gain further clarity.
The Senate recently adopted the Bill on Redress of Mass Damages in Collective Actions (RMDCA). The RMDCA enables representative entities to claim monetary compensation on behalf of their constituents, which provides aggrieved parties with more effective means of redress. The RMDCA also introduces stricter requirements regarding the admissibility of representative entities and the scope of collective action proceedings, along with other procedural changes.
The Rotterdam District Court recently assumed jurisdiction over the international securities class action lawsuit against Petrobras Brasileiro SA and others in the Netherlands. The judgment offers valuable insight into how the Dutch courts assess jurisdiction in cross-border collective redress cases. It also illustrates that the Netherlands could act as a collective redress venue in matters relating to events that mainly take place in foreign jurisdictions.