Governing Law, Jurisdiction and Enforcement Risk
Drafting appropriate dispute resolution clauses and evaluating enforcement risk is essential in cross-border transactions.
In this microsite, we share some of the know how and practical tips we have gleaned from our market leading experience in this field.
Impact of the Brexit vote
The UK has voted to leave the European Union. This will have an impact on various treaties and pieces of legislation that currently govern the rules in relation to Governing Law, Jurisdiction and Enforcement Risk.
At the point that the UK leaves the European Union, the following treaties and legislation will no longer apply to the UK:
- European Enforcement Order Regulation
- Hague Convention on Choice of Court Agreements 2005 (although the UK is likely to accede to this independently)
- Lugano Convention 1988
- Lugano Convention 2007 (although the UK may seek to become a signatory to this)
- Recast Brussels Regulation
- Rome I Regulation, and
- Rome II Regulation.
As such, the existing framework for deciding jurisdiction in disputes, recognising judgments and service of proceedings in Member States, and deciding the governing law of contracts and tortious claims, will be affected. It is possible that the UK will negotiate parallel arrangements on broadly the same terms as the current framework. In the interim, it is important that specific advice is taken in regard to governing law and jurisdiction clauses when entering new contracts.
If you would like to find out more about the legal and commercial implications of Brexit, including more detail on the possibilities regarding jurisdiction and governing law of contracts, our Brexit microsite can be accessed here.
This document (and any information accessed through links in this document) is provided for information purposes only and does not constitute legal advice. Professional legal advice should be obtained before taking or refraining from any action as a result of the contents of this document.