Amsterdam District Court to Refer Rent Price Surcharge Clause to CJEU
Summary
The cantonal judge of the Amsterdam District Court has decided to refer preliminary questions to the Court of Justice of the European Union regarding a rent price adjustment clause that combines inflation plus a surcharge. Nineteen tenants claim the surcharge is unfair and seek repayment of excess rent paid. The CJEU will be asked whether this type of combined adjustment clause constitutes an unfair contract term under EU law. Parties may still respond to the formulated questions before they are submitted to the CJEU.
Dutch landlords and letting agents who use inflation-plus-surcharge rent adjustment clauses in residential leases should review whether their current terms could be challenged following the CJEU referral. A ruling that such combined clauses constitute unfair contract terms could expose landlords to back-payment claims from tenants.
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What changed
The cantonal judge of the Amsterdam District Court has decided to honor a request from nineteen tenants and refer preliminary questions to the CJEU about a rent price adjustment clause. The clause provides for annual rent increases linked to the consumer price index plus an additional surcharge. The tenants argue this surcharge component is an unfair term and seek back-payment of excess rent. The Amsterdam court's decision follows a prior ruling by the Dutch Hoge Raad (Supreme Court), which had found that a similar clause with a maximum 3% surcharge above CPI was generally not unfair. Dutch landlords and property managers should monitor this referral, as a CJEU ruling on the fairness of combined inflation-plus-surcharge clauses could affect rental contract practices across the EU.
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