Court dismisses bank's claim for securities sale proceeds against defaulting lessees under Dutch law.
Netherlands (NL)
Legislator summary
AI generatedThe court dismissed Dexia Bank's claim for the full sale proceeds of the defendants' securities portfolio following their default on lease payments. While the contract allowed immediate termination and full recovery upon breach, the judge found it unfair to let the bank bear all losses due to market fluctuations. Consequently, the court applied the principle of good faith to split the financial loss equally between the parties, offsetting the defendants' prior rent payments against their share of the deficit.
Legislator headnote
AI generatedArticle 6:278 paragraph 2 of the Civil Code; The court held that where a contract is terminated due to breach, the principle of good faith requires the non-breaching party to bear half of the loss resulting from the sale of the subject matter if the value was lower than the purchase price.