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Punitive damages and public policy

By a decision handed down on 15th April 2015, the Italian Supreme Court ruled that the so called “astreinte” (which is a pecuniary penalty to ensure compliance) is not in conflict with Italian public policy. As a result, the Court allowed the recognition and execution in Italy of a Belgian judgement which provides for such pecuniary penalty to the defaulting debtor. In particular, the Court stated that the use of public policy is admitted only in “exceptional cases”, namely in cases of manifest violation of the fundamental principles of the legal system where the recognition is required and that the mere difference of regulation cannot be considered as a sufficient reason to deny such recognition. It should be reminded that in the past (judgment no. 1183/2007) the Court had found that “punitive damages” under U.S. law are contrary to Italian public policy.

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