Dwangsom
Penalty payment
A penalty payment is a monetary fine imposed by the court that becomes payable upon non-compliance with a judgment, the purpose of which is to compel compliance.
The penalty payment, also known as an astreinte, is a coercive remedy under Dutch civil law. It consists of a sum of money fixed by the court which the debtor becomes liable to pay for each day or other period during which he fails to comply with the principal order.
This measure is significant because it enhances the effectiveness of judicial decisions. Without a penalty payment, an order to perform or refrain from an act would often remain without effect if the debtor refuses to comply.
In practice, penalty payments are frequently imposed in proceedings concerning eviction, the surrender of property or the performance of contractual obligations. The court determines the amount and duration on the basis of the circumstances of the case.
“The court ordered the contractor to pay a penalty of €250 per day for as long as completion of the works remained outstanding.”
Need legal advice?
Schedule a free consultation with one of our specialists