The instrument of the model declaratory action will become a sharp sword through the introduction of performance titles instead of the previous declaratory tensor. Limits on the amount in dispute in the model for action for a declaratory judgement will be abolished.
Only law firms specialising in model declaratory judgements may conduct such proceedings if more than 100 injured parties seek the same legal protection in similar cases. There is no need for a compulsory association as was previously the case.
Legal action brought by a consumer can always be brought before the consumer court. This also applies to legal action for a declaratory judgement, which can be brought at any locally competent Higher Regional Court if at least 10 consumers are domiciled in the district of the competent Higher Regional Court.
There is no need to open a register at the Federal Office of Justice. The mandates will be managed by the law firm that conducts the model declaratory action. By the date of the oral hearing, the mandates for whom the decision is to become final or for whom a potential settlement is to become valid will be handed over.
No company should be permitted to generate profit or minimise damage when committing tortious acts. It should become unattractive to deliberately sell faulty products in the hope that only a fraction of the injured parties will sue.
If there are more than 1,000 registered aggrieved parties, the judgement can be declared generally binding for all aggrieved parties without participation in the lawsuit against the defendant company by the Higher Regional Court on application by the plaintiff representatives in a model declaratory procedure. This aims to avoid further legal action in the same case and conflicting judgements. This means consumers will have an effective instrument on a par with large companies.