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Update on Italian Law: Court of Milan Issues Ruling on Legal Validity of Email Communication | Leading International Law Firm

Navigating the Legal Landscape of Electronic Signatures: A Case Study from the Court of Milan

The use of technology in the legal sector has raised interpretative difficulties and misunderstandings, leading to serious consequences in seemingly trivial matters. A recent case in the Court of Milan highlighted the importance of understanding the meaning of ‘signature’ in the Italian Civil Code in a world where paper documents are becoming less common.

In this case, an insured individual sought full reimbursement of costs incurred in a lawsuit in California, but the D&O insurer only provided a partial refund. The insured corresponded with the insurer via email over several years, trying to obtain the full refund, which was consistently denied. After the U.S. litigation ended, the insured sent a letter-before-action and filed a lawsuit to recover the money paid to their U.S. lawyers.

The limitation period for such a claim is two years, but it can be reset by any written communication expressing the intention to exercise the creditor’s right. However, the communication must be in written form and include a signature to have legal effect.

The Court of Milan ruled in favor of the insurer, stating that emails lacking a proper electronic signature do not meet the requirements for an executed document under the Digital Administration Code. This decision aligns with a recent judgment by the Corte di Cassazione, emphasizing the importance of electronic signatures for legal standing.

It is crucial to pay attention to the form of communications, especially in email messages, as they may not meet the necessary requirements to have legal effect under the Italian Civil Code. This case serves as a reminder of the significance of understanding and complying with legal formalities in the digital age.

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