Financial litigation

What we do

Our financial litigation team guides and represents clients in disputes related to the financial world. The financial world and its supervision play an indispensable role for entrepreneurs. Due to European legislation, the field is extensive. From insurance agreements to credit agreements and asset management to fraud. We assist clients with, among other things:

• Procedures before judicial authorities
• Procedures at KiFiD (Financial Services Complaints Institute)
• Proceedings regarding breach of duty of care in investment advice or asset management
• Procedures regarding security (pledge and mortgage)
• Procedures regarding special obligations of capital market participants (e.g. prospectus liability)
• Procedures regarding financial fraud
• Proceedings regarding breach of various agreements

We have the knowledge and expertise to assume diverse roles: from advisory services to dispute resolution. We have an experienced team of lawyers and legal experts in the field of financial litigation. Contact us to discuss the possibilities.

When should you engage us for financial litigation?

A financial dispute rarely arises out of nowhere. Things often go wrong the moment a bank, insurer, asset manager, or financial advisor breaches a duty of care, terminates a credit or banking relationship, or recommends a product that was not suitable for you. Whether you are an international corporation or the baker on the corner: as soon as a financial institution stands opposite you, the standings are unequal. Our mixed teams of lawyers and in-house counsel restore that balance. We take action in cases including:

• Breach of the (special) duty of care in investment advice, asset management or lending
• Unjustified termination of credit or the banking relationship
• Disputes regarding interest rate swaps and other interest rate derivatives
• Investment loss due to incorrect or incomplete advice
• Prospectus liability and disputes in the capital markets
• Rejection of an insurance claim or breach of the duty of care by an intermediary
• Financial fraud and holding service providers liable

This page falls under our Financial Law, where you can read more about the broader framework of supervision and regulation within which financial service providers operate.

KiFiD or the civil court: which route suits your dispute?

In financial litigation, there is often a choice between two routes. The first is a complaint to the KiFiD (Financial Services Complaints Institute), the accessible dispute resolution body for consumers and small business owners in conflict with banks, insurers, mortgage lenders, or intermediaries. The second is proceedings before the civil court.

With regard to the KiFiD, you must first fully complete the service provider's internal complaints procedure. Only after a final rejection is the path to the KiFiD open. In principle, you must submit your complaint within one year of that rejection. You choose in advance between a binding or non-binding opinion from the Disputes Committee: with a binding opinion, the ruling is final for both parties and recourse to the courts is, in principle, closed thereafter; with a non-binding opinion, you retain the option to still take the matter to the civil court.

The civil court is designated when the service provider is not affiliated with the KiFiD, when the interest exceeds the KiFiD's jurisdictional ceiling, or when a major business dispute is not suitable for the more limited KiFiD procedure. We assess on a case-by-case basis which route offers the greatest chance of success and what that means for turnaround time, costs, and evidentiary position.

Legal bases: duty of care, breach of contract, and unlawful act

A successful financial procedure stands or falls with the correct legal basis. Financial service providers are subject to a special duty of care, which has been developed in case law and carries more weight the more complex the product and the less knowledgeable the client is. This duty of care is legally anchored, among other things, in the contractual relationship of Article 7:401 of the Dutch Civil Code, which obliges the contractor to exercise the care of a good contractor.

If that duty of care or another contractual obligation is breached, Article 6:74 of the Dutch Civil Code (breach of contract) provides a basis for recovering the damages suffered. If there is no contractual relationship, or if the institution acts unlawfully outside the scope of the agreement, a claim may be based on Article 6:162 of the Dutch Civil Code (tort). In addition, the public law rules of conduct under the Financial Supervision Act (Wft) play a role in defining what may be expected of a service provider acting with due care.

Pay attention to the statute of limitations: pursuant to Article 3:310 of the Dutch Civil Code, a claim for damages generally lapses five years after you became aware of both the damage and the liable party, with an absolute limit of twenty years. We closely monitor these time limits and, where necessary, interrupt the statute of limitations in a timely manner.

Our strategy: from evidentiary position to settlement

Financial disputes are often decided on the basis of the evidence. Whoever claims that a duty of care has been breached must, in principle, prove it. Therefore, we begin by carefully building the file: consultation meetings, email correspondence, recordings, product information, and the client profile are scrutinized. Based on this, we determine the most promising legal basis and the amount of damages.

Not every dispute needs to end up in court. Often, a substantiated claim of liability accompanied by a well-documented overview of damages is sufficient to persuade a financial institution to reach a settlement. If that fails, we will continue litigating resolutely, either at the KiFiD or in civil court. Our mixed teams of lawyers and (corporate) legal counsel tailor the approach to your objective and budget, whether you are a corporate entity with a complex derivatives case or an SME entrepreneur with an unjustly terminated credit facility.

Frequently asked questions about financial litigation

Do I have to file a complaint with the bank first before I can litigate?
For the KiFiD route, this is mandatory: you must first go through the internal complaints procedure and have received a final rejection. For the civil court, an internal complaint is not a prerequisite, but a well-documented complaint almost always strengthens your evidentiary position.

How long do I have to take action?
At the KiFiD, a period of one year after the final rejection generally applies. For a claim before the civil court, the limitation period of Article 3:310 of the Dutch Civil Code applies: generally five years from the date of knowledge of the damage and the liable party. So do not wait too long.

Can I still go to court after a KiFiD ruling?
That depends on your choice made beforehand. If you opt for a binding opinion, the ruling is final and the civil route is, in principle, closed. With a non-binding opinion, recourse to the civil court remains possible.

Do you also do business for small business owners?
Yes. From international corporations to the baker on the corner: we assist both corporates and small business owners and consumers in disputes with financial institutions.