Clifford Chance

Indemnity against administrative fines – Is it effective?

12 January 2016

It is possible to effectively indemnify for administratively imposed fines because of breaches of law. This follows from a recent prejudicial decision of the Supreme Court of the Netherlands in an action for recovery of an administrative fine between a contractor and subcontractor. Including indemnification clauses in agreements may therefore be a worthwhile protection against consequences of enforcement measures. Here are some considerations and conditions.

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