Repsol: Dutch parent company cannot simply be used as anchor defendant in order to create jurisdiction

Repsol: Dutch parent company cannot simply be used as anchor defendant in order to create jurisdiction

Foreign entities are often sued in the Netherlands on the basis of the ‘anchor defendant’ construction. This is possible only if the claims are sufficiently connected: the Dutch entity must be sued on the same factual and legal basis as the foreign entities. In its Repsol judgment, the District Court of The Hague ruled that a shareholder relationship and managerial interdependence do not suffice to show the required connection. A party is required to show concrete indications that the parent was directly involved in the actions of the foreign subsidiary.