Trust and good faith across borders

PREFACE XI

TRUST ACCOUNTS IN BELGIUM 1
Eric Dirix
1. Introduction 1
2. The Supreme Court takes a cautious view 5
3. The legislature intervenes 6
4. The trust account as a separate fund 8
5. Fiduciary obligations and control 11
6. Future developments 12

INVESTMENT PROTECTION TREATIES AND THE EUROPEAN JUDICIAL SYSTEMS – A CONSTITUTIONAL ISSUE PENDING IN COURT 13
Axel Flessner
I. Introduction 13
II. Investment Protection 14
III. The Constitutional Issue 17
1. The setting 17
2. Sovereign liability 18
3. Jurisdiction 23
4. The EU in reverse gear 25
IV. Proceedings and Perspectives 26
1. The ECJ on the Singapore treaty 27
2. CETA in the German Constitutional Court 28
3. The future involvement of the ECJ 29
4. Perspectives 29

THE RISKS OF INCREASED THIRD PARTY INVOLVEMENT IN THE APPLICATION OF IMMIGRATION LAW 31
Kees Groenendijk
1. Introduction 31
2. Third party involvement in immigration control: a general trend 32
3. The role of the EU in involving third parties in immigration control 36
4. Why increased involvement of third parties in immigration control? 38
5. Risk of conflicting interests 39
6. The relationship between international students, universities and the immigration service (IND) in the Netherlands 40
6.1 The new Dutch rules 41
6.2 Conflict of interests 43
6.3 The high fees for student’s permits continued 44
6.4 Some conclusions 45

TRUST LAW AND PROTECTED FUNDS 47
David Hayton
The Centre’s International Working Group on European Trust Law 47
Subsequent developments 49
Declarations of self as trustee 51
Civilian lex situs difficulties for trusts 51
Common law jurisdictions with “firewall legislation” 56
Resolution of difficulties through the inherent jurisdiction of the courts 57
Conclusions 59

THE PRECARIOUS POSITION OF THIRD PARTIES IN US SECURED TRANSACTIONS LAW 63
Jason J. Kilborn
I. Nothing to see here! The failure of Article 9 notice 66
II. Secret notice via control 69
III. No notice required 71
IV. Entirely secret liens – neither documentation nor notice 73

PRE-INSOLVENCY SCHEMES: REVISITING THE 2007 ‘COMMITTEE KORTMANN’ PROPOSAL 79
Lucas Kortmann
1. Introduction 79
2. The Draft Directive 82
3. Continuity of Enterprises Act II – the Dutch scheme of arrangements 84
4. 2007 Kortmann Proposal on pre-insolvency plans: potential inspiration? 88
5. Kortmann vs. current reforms: recommendations 92

THE AGENT’S WARRANTY OF AUTHORITY: RECENT DEVELOPMENTS IN THE UK 95
Laura Macgregor
A. Introduction 95
B. General Principles 96
C. Factual Scenarios in P&P Property and Zoya 97
D. The Policy Behind the Law 99
E. Scope of the warranty in the factual scenarios discussed 100
F. Criteria for the Application of the Warranty 102
(1) Inducement and Reliance 102
(2) Loss and remedies 104
G. Reconceptualising the legal basis? 106
H. Conclusions 108

COMING TO TERMS WITH GOOD FAITH 111
Ewan McKendrick
1. The traditional view 112
2. The challenge to the traditional view 113
3. The meaning of good faith 115
4. Express terms 117
5. Implied term in law 119
6. Implied term in fact 119
7. Conclusion 122

‘MONEY, MONEY, MONEY …’ SOME REFLECTIONS ON KANT AND MONEY 127
Thomas Mertens
Introduction 127
Money in Immanuel Kant’s moral philosophy 128
Money in Kant’s philosophy of law 131
Money in Kant’s anthropology 134

BREXIT: OPTIONS FOR BANKS FROM THE UK TO ACCESS THE EU MARKET 139
André Prüm
(1) Making Direct Offers 141
(2) Establishing themselves within the European Union 143
(3) Choosing a Subsidiary or Branch 145

INSOLVENCY LAW AS BULL IN THE CHINA STORE OF CONTRACT AND PROPERTY 153
Vincent Sagaert
I. Introduction 153
II. Property law and contract law: from perpetual ‘pendulum’ to gradual convergence 153
A. The division between contract and property in a dogmatic perspective 154
B. The division between contract and property in a functional perspective (‘insolvency proceedings’) 155
C. The division between contract and property in a formal perspective 158
D. Gradual convergence of property law and contract law 159
III. Insolvency law as indirect mechanism for convergence between property law and contract law 161
A. Personal obligations as part of a inherent proprietary arrangement 162
B. Executory agreements in insolvency: Belgian law as test tube 163
IV. Conclusion: insolvency law as engine for the convergence between property rights and obligations? 166

NOW MORE THAN EVER: A PLEA FOR AN OPTIONAL EU CONTRACT AND CONSUMER CODE FORMING AN ‘EU BILL OF CUSTOMER RIGHTS’ 171
Hans Schulte-Nölke,
I. No farewell to national civil codes 171
II. The BGB and the BW are different products of the tradition of codification 172
III. One internal market with 27 contract laws? 176
IV. An urgent practical and legal problem: Access to justice in cross-border consumer cases 177
V. What the EU can do 180
VI. Europe of different speeds 182
VII. Conclusions 183

A RECENT DEVELOPMENT REGARDING A COMPANY SHAREHOLDER’S PERSONAL DELICTUAL CLAIM FOR PURE ECONOMIC LOSS IN SOUTH AFRICAN LAW 185
Johan Scott
1. Introduction 185
2. The Itzikowitz case 190
2.1 Facts and judgment 190
2.2 Introductory remarks on wrongfulness 192
2.3 Company law principles as a determining factor for wrongfulness 195
2.3.1 Identifying the principles involved 195
2.3.2 Influence of English company law 196
2.3.3 Prior South African case law permitting a shareholder’s independent claim 202
2.4 Additional issues 209
3. Conclusion 209

VAN ROMEINS-HOLLANDSREGTELIKE PACTA DE QUOTA LITIS TOT ENGELSREGTELIKE MAINTENANCE EN CHAMPERTY 213
Susan Scott
1. Inleiding 213
2. Pacta de quota litis 216
3. Gevolgtrekking 236

DAYTONA (A CROSS-BORDER STORY ON ACQUIRING FERRARIS) 239
Teun H.D. Struycken
1. Drama 239
2. The legal issues 241
3. Direct acquisition 241
4. The Supreme Court on the applicable law 246
5. Some background on Dutch private international law of property 247
6. The bigger PIL picture 250
7. Revendicatory action 252
8. Epilogue 255

THE RELEASE OF THIRD PARTY GUARANTEES IN PRE-INSOLVENCY RESTRUCTURING PLANS 259
Michael Veder and Adrian Thery
1. Introduction 259
2. The importance of guarantees in financing a business 262
3. The importance of releasing guarantees in a restructuring 263
4. A brief comparative ‘tour d’horizon’ 265
5. Draft Directive 270
6. An obstacle in cross-border cases and a possible solution 271
7. Concluding observations 273

LEAPFROGGING: INDIRECT ENRICHMENT, PRIVITY AND INSOLVENCY 275
Rick Verhagen
1. Introduction 275
2. Leapfrogging one’s contractual counterparty: two cases 277
3. Ius commune 280
4. Unjust enrichment at the expense of another 285
5. Policy reasons against leapfrogging (I): acceptance of insolvency risk 294
6. Policy reasons against leapfrogging (II): subversion of the insolvency regime 298
7. Policy reasons against leapfrogging (III): double liability, double receipts and security of receipts 299
8. Leapfrogging other regions: undisclosed principal doctrine and builder’s liens 302
9. Sub-contracting transactions ‘falling only just short of a direct contractual relationship’ 306
10. Finding a ‘silver bullet’ 308
11. Indirect Enrichment, Privity and Insolvency 309

TRUSTING EU COURTS IN MATTERS OF RESTRUCTURING AND INSOLVENCY 311
Bob Wessels

LIST OF PUBLICATIONS 325
PROMOTI PROF. DR. S.C.J.J. KORTMANN 349
HONORARY DOCTORATES 350