Dutch Court Landmark Decision On Compensation Of Victims Of Gas-Extraction Induced Earthquakes
By Joris Gazendam, LLM, PhD Researcher University of Groningen On 23 January 2018 the Court of Appeal Arnhem-Leeuwarden ruled in a case between claimants living in the province of Groningen and the Nederlandse Aardolie Maatschappij (hereinafter: NAM). The case revolved around damages as a result of earthquakes which are caused by the extraction of natural gas in the province of Groningen. The main legal question was whether the owners of houses can claim compensation for the devaluation of their houses even if they do not sell their (whether or not physically damaged) houses. Normally, the financial loss for the owner of a house becomes visible on the moment of sale. In this case the owners explicitly wanted to be compensated even if they would not sell their house. The Court of Appeal ruled that an owner of a house can only once claim compensation for damages. Parties are free to decide on a reference date on which the depreciation is to be determined. On this date a real estat