Enforceable by stock

Published by: Roderick Rischen posted on 27 July 2016 reading time

Most judgments are declared provisionally enforceable. This means that the judgement can be executed even though an appeal has been lodged. The plaintiff who won the case in court does not have to wait for the appeal to be lodged before 'winning the case'.

However, there is a risk involved and a recent Supreme Court ruling provides a good example.

In the first instance, Duck was ordered to demolish the top floor of her house within a month of the service of the judgment. If she did not do so in time, she had to pay a fine (periodic penalty payment). She started the demolition work, but at the same time asked the court in another procedure to suspend the execution of the sentence. She was granted that suspension and in appeal the court ruled in her favour.

Duck then claimed damages from the original claimant, because it had ultimately proceeded with demolition in error. She was proven right.

The party that had forced Duck to comply with the judgment - and thus to demolish the top floor - is in principle acting unlawfully and will have to pay compensation if it is established on appeal that the court's judgment was incorrect. Even if you act on the basis of a court decision, you may later prove to have acted incorrectly and have to pay compensation for damages, for example.

If you would like to know more, please feel free to contact us.