German Supreme Court clarifies scope of PTD insolvency protection

In judgement of Nov. 2, 2011 the German Supreme Court (BGH) held that insolvency protection pursuant to Art. 7 PTD also covers the repayment of the travel price if the organiser had cancelled the package trip before going bust. Neither Art. 7 PTD nor German law would require a causal connection between the insolvency of the organiser and the cancellation of the trip. Due to clear wording of Art. 7 PTD in this regard, the BGH saw no reason to file a reference for preliminary ruling to the ECJ.Source: BGH press release 173/2011 of Nov. 2, 2011

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