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Administrator goes bankrupt and loses dozens of files — court of appeal intervenes of its own motion

20 April 2026Juriaan de Vries

Removal of an administrator of the court's own motion on serious grounds

The Hague Court of Appeal upheld the removal, of the court's own motion, of a professional administrator in all 350 cases for structural breaches of the statutory quality requirements. A single instance of default is enough to justify a mass removal where the overall picture calls for it. Persons under administration can rely on the subdistrict court to intervene even of its own motion.

Subdistrict court removes administrator in all cases: court of appeal holds firm

The subdistrict court in The Hague removed a professional administrator with effect from 21 July 2025 in all cases under her management — some 350 clients in total. The removal followed identified shortcomings in the conduct of the administration, and was compounded by the administrator's own bankruptcy on 5 August 2025. On appeal, the former administrator sought to have that decision set aside. The court of appeal dismissed the request and upheld the removal in full.

The factual background was serious. The successor administrator, who took over 160 files, found after the handover that the files were in poor condition: poor communication with the persons under administration, unresolved debts, and financial inaccuracies. The trustee in bankruptcy in the former administrator's bankruptcy made further findings: funds belonging to persons under administration had been withdrawn without authorisation from the subdistrict court, and there were strong indications that the director of the administrator had unlawfully appropriated sums. Steps to hold the director liable were already being prepared.

On appeal, the former administrator acknowledged that mistakes had been made, but attributed them to staff — not to herself. That defence does not hold: the administrator bears responsibility for the proper management of all the files entrusted to her, regardless of who carried out the work.

A mass removal is permitted where the overall picture requires it

The central point of law in this judgment is the power of the subdistrict court to order removal of its own motion under Section 1:448(1)(e) and (2) DCC. The former administrator argued that the removal in this individual case could not be supported by shortcomings in other files. The court of appeal rejected that argument.

The court's reasoning is one of principle: what matters in a mass removal is not whether something went wrong in each individual case, but the overall picture of the administrator's functioning. Where that overall picture gives rise to serious grounds — as it plainly did here — this justifies removal in all cases. The subdistrict court need not assess the decision in each individual case against the facts of that particular file. Nor does it need to, because the individual person under administration is dependent on a system that was structurally dysfunctional.

The court of appeal also assessed the matter ex nunc: facts that came to light after the subdistrict court's order also count. That worked against the former administrator here, because the trustee's findings only made the picture darker. Breaches of the Quality Requirements Decree for trustees, protective administrators and mentors (Besluit kwaliteitseisen curatoren, beschermingsbewindvoerders en mentoren) — including the duty to keep proper records and the prohibition on obtaining any benefit other than the statutory remuneration — had demonstrably occurred.

The ground of appeal concerning the right to a fair trial (breach of the right to be heard at first instance) also failed. An appeal has a corrective function: procedural defects at first instance can be cured on appeal. The former administrator had a full opportunity on appeal to set out her position, and did so.

What does this mean for persons under administration?

Anyone placed under administration depends on the administrator for the management of his or her assets. That dependence presupposes proper supervision. This judgment confirms that the subdistrict court takes that supervision seriously: where structural problems are established at a professional administrator, removal in all cases may follow — even if nothing can be shown to have gone wrong in your individual case.

For persons under administration, this means that signs of default — poor communication, unanswered questions, uncertainty about balances — may be reason to inform the subdistrict court. The subdistrict court can act of its own motion, even without a request from the person under administration. Anyone who suspects that the administrator has withdrawn funds or otherwise harmed the interests of the person under administration can, moreover, raise the matter directly through the complaints procedure before the supervising subdistrict court.

More on the supervision of administrators and enforcement proceedings: Insolvency and enforcement at Prime Law.

Frequently asked questions

Can an administrator be removed even though nothing went wrong in my specific case?

Yes. If the subdistrict court finds that an administrator is structurally failing across the whole of his or her cases, removal of the court's own motion may follow in all cases — even if no concrete error has been established in an individual file. What matters is the overall picture of functioning.

What is the legal basis for removing an administrator?

Removal may be ordered on request or of the court's own motion under Section 1:448 DCC. Serious grounds form the statutory basis. Breaches of the quality requirements under the Quality Requirements Decree — including proper record-keeping and the prohibition on unjustified benefit — constitute such grounds.

Do new facts count that only come to light after the removal order?

Yes. The court of appeal assesses the removal ex nunc: findings made after the subdistrict court's order may also be taken into account. In this case, the trustee's bankruptcy investigation considerably reinforced the picture of default.

The Hague Court of Appeal, 11 March 2026, ECLI:NL:GHDHA:2026:455.

Cited case law

Courts of Appeal: ECLI:NL:GHDHA:2026:455

See also