I TURNED 50 TODAY!
Most stuff still works
I am happy and still enjoy life. I will keep on working to make Curaçao a better place to live for all human beings irrespective of their color, culture, race, nationality, language, religion, belief, age or sexual orientation.
I will spend my birthday with my wife, daughters and parents… and not on Facebook.
I have asked my family and friends to make a contribution to the “Akademia di Beisbòl Bandabou Tigers” in Curaçao in lieu of a birthday gift. And if you feel like contributing to this cause, please send an email for …
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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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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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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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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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DUTCH CARIBBEAN BANKS AND REGULATORY ISSUES
A bank has less freedom than an ordinary legal entity
What would be the requirements, from a regulatory point of view, if a Curaçao or St. Maarten bank wished to sell its entire business or a substantial part thereof? Would it require approval from the Central Bank of Curaçao and St. Maarten (‘Centrale Bank van Curaçao en St. Maarten’)?
Generally, if the activity at a bank is characterized as some form of financial reorganization, for example, the prior approval of the Central Bank is required. The bank is also obliged to immediately inform the Central Bank in writing of any …
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LEGAL FEES: CHANGING LANDSCAPE
Alternative billing arrangements
According to Larry Primeaux, the construction of legal fees is undergoing a metamorphosis in reaction to changing economics. Fact is, indeed, that you read everywhere that law firms (lawyers, advocates, attorneys) have to change. The system of “hourly rate billing” in particular has to take the rap. “In this economy, at least for the short term, it appears that law firms will be forced to agree to alternative fee arrangements if clients demand those arrangements.” (2013 ABA Publication).
According to the website AMPulse, “the success of flat rate fees is dependent …
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LAWYERS AND BILLABLE HOURS
What is wrong with this exactly?
You read everywhere that law firms (lawyers, advocates, attorneys) have to change. Lawyers are too conservative. They hold on to the past and are anything but innovative. As the economic climate deteriorates the call for change becomes increasingly stronger.
The system of “hourly rate billing” in particular has to take the rap. Lawyers are reproached for billing hours with a fork, not working efficiently and being too expensive. The system apparently has the wrong incentives, partly because it is difficult to check the actual number of hours spent efficiently.
Anyone who becomes aware of …
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THE COURT OF LAST RESORT
Curaçao court as court of last resort for civil matters
An attachment on assets located in Curaçao generally establishes jurisdiction over the cause of action for which the attachment is made, also if neither of the parties involved are domiciled in Curaçao.
According to Section 767 of the Curaçao Code of Civil Procedure, the Curaçao court is competent to hear a case on the merits (i.e. has (international) jurisdiction) if there are no other means of obtaining an enforceable order in Curaçao (first condition).
This condition will not be met if, for instance, in respect of a claim an arbitrator …
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150 JURIDISCHE PUBLICATIES
Een persoonlijke mijlpaal
Afgelopen donderdag was het dan zo ver: mijn 150e juridische publicatie zag het levenslicht. Het gaat om mijn bijdrage aan het Liber Amicorum ‘Christels Koers’ dat toen werd aangeboden aan prof.mr. drs. C.M. Grundmann-van de Krol: “Openbaarmaking door de financiële toezichthouders”. De volledige lijst met publicaties is hier te vinden.
Nummer 151 is overigens al geschreven en is in het komende nummer van het Caribisch Juristenblad te vinden. De meer dan 850 stukken die op deze weblog staan heb ik uiteraard niet meegeteld…
Karel Frielink Attorney (Lawyer) / Partner
(2 December 2013)
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CHALLENGING THE VALIDITY OF A CONTRACT
Based on error, fraud or undue influence
The validity of a contract can be challenged on various grounds, including error, fraud or undue influence. In the case to be discussed here a contract was entered into by an intermediary. Appellants in cassation (Van Eendenberg) were owners of the parcels on which a preferential right was established pursuant to the (Dutch) Municipalities (Preferential Rights) Act. In view of the sale of those parcels, in so far as municipalities should need them for house construction, they have entered into a brokerage agreement with Agromak BV.
Its director then acted as an intermediary …
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CREDIT INSTITUTIONS IN THE BES ISLANDS
Strictly regulated
With effect from 1 July 2012, the Financial Markets (BES Islands) Act [Wet financiële markten BES; “Wfm BES”] came into force, with the associated subordinate regulations. The Wfm BES applies to financial institutions in the BES islands (Bonaire, St. Eustatius and Saba). There are several categories of financial institutions, including credit institutions (banks).
A “credit institution” (kredietinstelling) is a party engaged in the business of obtaining callable funds (opvorderbare gelden) from outside a restricted circle (besloten kring) and from parties other than professional market parties (professionele marktpartijen) and of the extension of loans (kredietuitzettingen) at such party’s (own) …
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