BELGIUM Law and Practice Contributed by: Dominique Blommaert, Didier Bracke, Jens Benoot and Lydie Van Muylem, Janson
d’accord/akkoordvonnis ), which provides the parties with an enforceable title. 8.2 Settlement of Lawsuits and Confidentiality The settlement of a lawsuit can remain confidential since it is possible for parties to settle their dispute without the involvement of the courts or any third par- ties. Once a settlement is concluded, the parties can formally withdraw the lawsuit without disclosing the content of the settlement to the court. Moreover, to ensure confidentiality, the parties can provide for non-disclosure obligations in the settle- ment agreement. 8.3 Enforcement of Settlement Agreements When one of the parties continues legal proceedings, despite the dispute already being settled in a settle- ment agreement, the other party may invoke the set- tlement agreement to have the claim dismissed. If a party acts in breach of a settlement agreement, the other party can file suit for breach of contract and claim either specific performance, damages, or termi- nation of the settlement agreement. 8.4 Setting Aside Settlement Agreements A settlement agreement may be set aside if deemed invalid by the court (eg, if one party is found to have deceived the other), or if the agreement is terminated for material breach. However, it is not uncommon for settlement agree- ments to include provisions excluding the right to ter- minate for material breach and limiting the possibility of having the agreement declared null and void. 9. Damages and Judgment 9.1 Awards Available to the Successful Litigant Traditionally, the preferred remedy in Belgian law is specific performance. However, if the performance of the contract is no longer possible or desirable, the most common remedy is compensation (ie, damages). Other remedies that courts can award include:
• cease and desist orders; and • civil penalties ( dwangsom/astreinte ) that accrue in case of non-compliance with a court order; civil penalties cannot be granted in case of an order to pay a sum of money. 9.2 Rules Regarding Damages Damages are available to compensate for any dam- age caused by fault or negligence, provided that there is a causal link between the damage and the fault or negligence. The core principle of civil liability law in Belgium is full restitution for the injured party, placing them in a posi- tion as if the damage had not occurred. The injured party is therefore entitled to full compensation. If it is difficult to determine the amount of damages, the judge may make a decision based on their own best judgment (“ex aequo et bono”). Punitive damages are not available in Belgium. 9.3 Pre-Judgment and Post-Judgment Interest When one of the parties delays the payment of their debt, which is a clearly determined sum of money, the other party is entitled to moratory interest. Mora- tory interest is interest accrued in accordance with the legal interest rate, which is determined by statute, though parties may also determine a different interest rate in their contract. Generally, such interest accrues as of the date of the notice of default by the creditor. Belgian law also recognises compensatory interests. Compensatory interest is only applied if the amount of money owed by the debtor is not clearly determined. The rate, in this scenario, compensates for actual damage suffered, meaning the judge has the discre- tion to decide what the appropriate rate should be. Normally, interest is calculated as simple interest. Compound interest is permissible exclusively for moratory interest and only under specific conditions, namely after a full year of interest accrual.
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