Collective action (WAMCA): how do mass damage claims work?

Since 1 January 2020, a foundation or association can claim money damages on behalf of a large group of injured parties in the Netherlands, for events that took place on or after 15 November 2016. This comes from the Act on the Resolution of Mass Damages in a Collective Action (Wet afwikkeling massaschade in collectieve actie, WAMCA). The organisation must meet strict admissibility requirements, and Dutch residents are bound by the outcome unless they opt out.

Mass damage is loss suffered by a large group from the same cause: a defective product, a data breach, misleading financial information, an environmental incident or a cartel. The loss per person is often modest while the total is large, which is why individual proceedings rarely happen. Before the WAMCA, a collective action could only obtain a declaration that conduct was unlawful.

What changed with the WAMCA?

The WAMCA allows representative organisations to claim money damages for the group as a whole. It also introduced strict admissibility requirements and a public central register for collective claims (Centraal register voor collectieve vorderingen), kept by the Council for the Judiciary on rechtspraak.nl.

Who may bring a collective action?

Only a foundation or association whose articles of association cover the interests concerned. It must be sufficiently representative of the group, have adequate governance and supervision, be transparent about its funding, and have tried to resolve the matter with the defendant before going to court.

The summons must be entered in the central register within two working days after it is served. The court then holds the case for three months, so that other organisations can bring a claim about the same event.

What happens if several organisations come forward?

The court appoints one of them as exclusive representative (exclusieve belangenbehartiger), which conducts the action for the whole group. This prevents parallel proceedings about the same facts; the other organisations can still take part in the case.

Who is bound by the outcome?

Injured parties resident in the Netherlands fall within the class automatically and are bound unless they opt out (Article 1018f of the Dutch Code of Civil Procedure, Rv). The court sets the opt-out period, which runs for at least one month after the public announcement; in practice it is often two to three months. Injured parties resident abroad in principle have to opt in.

If the parties reach a collective settlement, the court can approve it and declare it binding on the class, again subject to a right to opt out.

What should you check as an injured party?

Your main decision is whether to stay in the class or pursue your own claim.

• Check the central register on rechtspraak.nl for an action about your event.
• Check whether the event took place on or after 15 November 2016.
• Note the opt-out (or opt-in) deadline set by the court.
• Read the funding terms: which share of any compensation goes to the funder.
• Consider whether your individual loss is large enough to justify opting out and claiming separately.

What should you check as a company facing a collective action?

For companies, exposure from a single event is aggregated from the outset, so the first months decide much of the case.

• Check whether the claimant organisation meets the admissibility requirements, including funding transparency.
• Check whether the events fall within the WAMCA’s scope in time and place.
• Monitor the central register for competing actions during the three-month period.
• Notify your insurer and secure documents from the start.
• Assess early whether a collective settlement is worth exploring.

What can we do for you with a collective claim?

Our corporate lawyers advise injured parties and companies on WAMCA proceedings; our guide to class actions in the Netherlands sets out the procedure in full.

• We check whether a registered action covers your loss and what opting out would mean for you.
• We submit your opt-out or opt-in statement within the deadline set by the court.
• We pursue an individual claim if that serves you better than the collective action.
• We assess the admissibility of a claimant organisation and draft the defence for your company.
• We negotiate a collective settlement and its approval by the court.

Summary

• Since 1 January 2020, the WAMCA allows representative organisations to claim money damages for a group, for events on or after 15 November 2016.
• Only a foundation or association meeting strict admissibility requirements can bring the claim; it is entered in a central register on rechtspraak.nl.
• Other organisations have three months to bring a claim about the same event; the court appoints one exclusive representative.
• Dutch residents are in the class unless they opt out within at least one month; foreign residents in principle have to opt in.

Frequently asked questions