October 12th, 2010

Continental European Legislative and Judicial Trends: Conclusion

Posted at 1:00 AM ET

2010_legislative_thumb-2David Lewin, Managing Director

The latest key legislative and judicial developments reported in this issue of our legal update reveal a level of conservatism amongst both judges and legislators that is sounding a note of caution over the pace at which legal liability should expand in Continental Europe.

This conservatism is evident in the reluctance of judges and legislators to bow to pressure from the legal community to reverse the burden of proof for individual claimants in Italy, Spain and Germany and in the refusal of the Dutch Parliament to pass legislation introducing pain and suffering awards in tort law.

A note of caution is also evident in the reaction across the European Union to the proposals of the Rome II Study on the compensation of cross-border victims of motor accidents. The general concensus at the present time is that it would not be appropriate to allow victims to import the legal regime of their country of residence, and that the law applicable in the country where the accident occurs should continue to apply. This view is reflected in the decision of Jacobs-vs-MIB to apply Spanish compensation law (rather than the more onerous English law) to the English victim of an accident in Spain.

Nevertheless, the underlying long-term pressure to extend liability to a more standardized level across Europe remains, and in future issues of our legal update we are likely to witness fresh legal challenges to increase both compensation levels and the scope of legal liability in due course.

Click here to have the rest of this series — and other GC Capital Ideas updates — delivered to your inbox.

Securities or investments, as applicable, are offered in the United States through GC Securities, a division of MMC Securities Corp., a US registered broker-dealer and member FINRA/SIPC. Main Office: 1166 Avenue of the Americas, New York, NY 10036. Phone: (212) 345-5000. Securities or investments, as applicable, are offered in the European Union by GC Securities, a division of MMC Securities (Europe) Ltd., which is authorized and regulated by the Financial Services Authority. Reinsurance products are placed through qualified affiliates of Guy Carpenter & Company, LLC. MMC Securities Corp., MMC Securities (Europe) Ltd. and Guy Carpenter & Company, LLC are affiliates owned by Marsh & McLennan Companies. This communication is not intended as an offer to sell or a solicitation of any offer to buy any security, financial instrument, reinsurance or insurance product.

Guy Carpenter & Company, LLC provides this report for general information only. The information contained herein is based on sources we believe reliable, but we do not guarantee its accuracy, and it should be understood to be general insurance/reinsurance information only. Guy Carpenter & Company, LLC makes no representations or warranties, express or implied. The information is not intended to be taken as advice with respect to any individual situation and cannot be relied upon as such.

Readers are cautioned not to place undue reliance on any historical, current or forward-looking statements. Guy Carpenter & Company, LLC undertakes no obligation to update or revise publicly any historical, current or forward-looking statements, whether as a result of new information, research, future events or otherwise.

Statements concerning, tax, accounting, legal or regulatory matters should be understood to be general observations based solely on our experience as reinsurance brokers and risk consultants, and may not be relied upon as tax, accounting, legal or regulatory advice which we are not authorized to provide. All such matters should be reviewed with your own qualified advisors in these areas.

AddThis Feed Button
Bookmark and Share

Related Posts