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GÖHMANN co-publishes comprehensive law book on the German Declaratory Model Action (Musterfeststellungsklage) Nordholtz / Mekat, German Declaratory Model Action (Musterfeststellungsklage), NOMOS 2018, 320 pages.

Just in time for entry into force of the new German Declaratory Model Action (Musterfeststellungsklage) on November 1, 2018, our GÖHMANN partners Dr. Christian Nordholtz (editor), Dr. Ilka Heigl, Dr. Stephan Boese and Larissa Normann co-publish (jointly with five further renowned litigation lawyers) one of the first comprehensive law books for this new German collective action. For the first time, such a broad collective customer action procedure is introduced into German law. Although the extremely rapid legislative procedure and the draft itself have been extensively criticized, several companies, lawyers and judges will nevertheless have to deal with the German Declaratory Model Action right from the start.

The new German Declaratory Model Action allows specific customer associations to bring a declaratory action for the benefit of customers against corporates in order to archive a binding declaratory judgment regarding certain facts or legal questions. Unlike in a typical class action, consumers would not be directly involved. Consumers still have to file another claim for their specific cases following the German Declaratory Model Action. The judge of such follow-up individual procedure will be bound by the judgement of the German Declaratory Model Action. Generally, the German legal market currently experiences that foreign litigation finance providers, highly-specialized law firms and LegalTech innovations enter the current environment in mass litigation cases, for example in connection with the Volkswagen emission case. Until October 2018, there were nearly no collective procedures in German law introduced, except for very few and specific circumstances (simplified). Additionally, the EU commission discusses the so-called “New Deal for Consumers” in parallel, which may introduce a similar collective procedure to the US-style class action procedure into several European jurisdictions in the near future.

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