Machina Pauliana: A neuro-symbolic approach to the actio pauliana in Dutch insolvency law

Daan Boven, Gregor Behnke, David Graus

Applying a legal provision frequently requires both structured rule-based reasoning and sensitivity to open-textured terms developed in case law. The actio pauliana of Article 42 of the Dutch Bankruptcy Act (Faillissementswet, Fw), which allows an insolvency practitioner to avoid transactions that prejudice creditors, requires both. We present a neuro-symbolic model of Article 42 Fw. Its symbolic core is written in Catala in a literate style that keeps statute and formalisation aligned and was developed through pair programming, with open-textured terms represented as boolean inputs where neural components couple to the symbolic solver. A neural routine structures a case's natural-language facts into boolean and date inputs. Neural subroutines resolve the open-textured terms through case-based reasoning over Dutch civil judgments, retrieved through a pipeline that filters on the requirement being resolved and expands along the procedural chain of a case. Segmenting and labelling those judgments attains high precision and recall against a manually annotated gold standard of 100 judgments. On ten hand-annotated cases the neuro-symbolic model handles most criteria reasonably but…