TYPES OF LIABILITY IN ARUBA

A three-part distinction

With regard to liability a three-part distinction can be made. The first distinction relates to the basis of the liability: liability pursuant to a contractual relationship (the attributable failure in this respect) and liability pursuant to a wrongful act.

Another distinction relates to the personal liability (thus for the party’s own actions or omissions) and vicarious and/or strict liability: liability for or the acts and omissions of others (vicarious liability) or liability for certain things that happen (strict liability).

For example, employers can be held vicariously liable for certain actions of their employees. According to the Aruba …
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06
May 2016
CATEGORY

Legal

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THE BINDING EFFECT OF JUDGMENTS

Limited to the parties involved in the proceedings

Court decisions, even decisions by the Dutch Supreme Court, are not binding on courts when deciding future cases. However, the Code of Civil Procedure prevents parties from litigating twice on the same legal issue. The principle that a final judgment of a competent court is conclusive upon the parties in any subsequent litigation involving the same cause of action is known as ‘res judicata ’.

A Dutch court case is described below illustrating this principle: Utrecht District Court of 19 March 2009 (NJF 2009/291).

In initial litigation, the claimant had sought payment …
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02
Mar 2016
CATEGORY

Legal

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PRE-TRIAL MOTIONS IN CURACAO

Differences with the United States

Curaçao civil proceedings differ substantially from those in the United States. In Curaçao there are, for instance, no juries. In principle, legal proceedings are basically conducted in writing. Oral pleadings are customary in preliminary relief proceedings, but optional in proceedings on the merits. Discovery proceedings like those in the United States do not exist. Pre-trial motions similar to those in the United States do not exist in Curaçao either. There are, however, so-called incidents or ancillary proceedings in Curaçao.

An ancillary proceeding may be a separate procedural step or an ancillary step within the framework …
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18
Aug 2015
CATEGORY

Legal

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BZSE ATTORNEYS – STRAIGHTFORWARD

The Curaçao partners of BZSE

Law is a people’s issue. Clients prefer people to buildings. They are seeking assistance from an expert they can trust. An expert who is able to really listen and who actually adds value to their case.

Quality, continuity and stability are the foundations of the personalized approach by BZSE. In both the civil law as well as in the tax practice, the attorneys and tax lawyers have many years of outstanding service in the Dutch Caribbean.

As of its incorporation, BZSE Attorneys at Law and Tax Advisers has been active throughout the Dutch Caribbean: Aruba, …
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15
Jul 2015
CATEGORY

Legal

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STATE-OWNED ENTERPRISES AND GOOD CORPORATE GOVERNANCE

Speech by Karel Frielink at the 8th Biennial Conference of the Caribbean Ombudsman Association

Ladies and Gentlemen!

First of all, I would like to thank the Curaçao Ombudsman, Alba Martijn, for inviting me to speak at this conference. Unfortunately, she will leave office in about a month. She did an excellent job, and her professionalism, dedication and impartiality leave a lasting legacy. Thank you Alba!

I have only half an hour, so I won’t travel back in time to the early days of mankind. I just start with Plato (427 – 347 B.C.E.). You may have heard of this philosopher. …
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26
May 2015
CATEGORY

Corporate

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THE BINDING EFFECT OF A JUDGMENT

Litigating twice on the same matter is not allowed

The Code of Civil Procedure of Aruba prevents parties from litigating twice on the same legal issue. The principle that a final judgment of a competent court is conclusive upon the parties in any subsequent litigation involving the same cause of action is known as ‘res judicata ’.

The binding effect of a judgment is limited to the parties which have been involved in the proceedings that resulted in the judgment. As far as the subjective scope of the binding effect (res judicata) is concerned: the subjective scope of a judgment is …
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18
Jun 2014
CATEGORY

Legal

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TRUST INTRODUCED IN SINT MAARTEN

Brief summary of several of the powers and obligations of a Trustee

On April 1, 2014, new legislation entered into force pursuant to which it is now possible to set up a trust, similar to the trust in Anglo-Saxon common law jurisdictions, in St. Maarten (a civil law jurisdiction). Similar legislation entered into force in Curaçao on January 1, 2012.

The St. Maarten Trust could serve as an important tool for various financial and commercial transactions: as a security agent, for tax and estate planning, as a pension or investment fund, asset protection, voting structures, promoting cultural, academic and charitable …
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15
May 2014
CATEGORY

Finance

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OVERHEID EN OVERHEIDSBEDRIJVEN

Een hybride vorm werkt niet

Al meer dan eens heb ik aangegeven dat de verhouding tussen de overheid (het Land Curaçao) en de overheidsvennootschappen soms een moeizame is. Wat mij betreft moet de overheid een duidelijke keuze maken: óf activiteiten worden uitgeoefend in de vorm van een overheidsdienst en onder directe verantwoordelijkheid van een minister (en dan is iedereen ambtenaar) óf activiteiten worden uitgeoefend in de vorm van een vennootschap (NV of BV), maar dan moeten die ook zoveel mogelijk buiten de politieke invloedssfeer worden gehouden. De huidige situatie heeft een hybride karakter: er is wel gekozen …
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03
Apr 2014
CATEGORY

Corporate

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LITIGATION IN THE DUTCH CARIBBEAN

If you need a troubleshooter in your corner

The civil court system in the Dutch Caribbean (Aruba, Bonaire, Curaçao, St. Maarten, St. Eustatius and Saba) consists of three tiers; first instance cases are brought before the Court of First Instance. Appeal cases are brought before the Joint Court of Appeal. When all normal appeal procedures have been exhausted, cassation cases can be brought before the Court of Cassation or Supreme Court (Hoge Raad) in The Hague in the Netherlands.

All adversarial proceedings in the Dutch Caribbean shall be initiated by means of a petition to the Court of First Instance. …
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19
Feb 2014
CATEGORY

Legal

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GOVERNMENT-OWNED COMPANIES

Opposing views on political influence

Few people would argue that the rules issued by the state (government) must also be correctly and strictly observed by that same state. It cannot be well conceived that, for example, the police and Public Prosecutor’s Office (as instruments of the state) should be allowed to violate the law with impunity.

Though there may be very different opinions about the nature and the role of the state (particularly from a philosophical and jurisprudential viewpoint), here we address the question of how we should consider government-owned companies, and in particular, what level of influence the government …
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17
Feb 2014
CATEGORY

Corporate

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THE INCORPORATION OF A CURACAO LIMITED LIABILITY COMPANY

Incorporating an NV or BV is not a hassle

The act on corporate law (Book 2 Curaçao Civil Code) governs the NV (‘public limited liability company’) and BV (‘private limited liability company’). These companies can be used for group finance or holding activities, (international) joint-ventures, funds, structured finance, as a Curaçao Trust and for “plain-vanilla” (local) activities.

A notarial deed is required for the formation of an NV or BV and for any amendment to articles of association (a.k.a. articles of incorporation). Formation can however, be very quick (within one or two days if necessary) and does not require many …
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14
Feb 2014
CATEGORY

Corporate

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THE CURACAO TRUST BECOMES MORE AND MORE POPULAR

Curaçao Trust could be used for asset segregation purposes

According to Professor of Law David Hayton, an Anglo-Saxon trust arises from the settlor’s transfer of title to property to another person, intending that person to be a trustee-manager of it for the benefit of beneficiaries or for a charitable or other permitted purpose. Trusts are founded on a transfer of title to property: contracts are not. Professor Hayton:

Such a contractual concept inevitably leads – or rather misleads – civil lawyers to consider that the Anglo-Saxon trust is simply a glorified form of contract between the settlor …
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08
Feb 2014
CATEGORY

Finance

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