On 14 December the European Commission published its proposals for changes to Council Regulation (EC) No 44/2001 on jurisdiction and the recognition and enforcement of judgments in civil and commercial matters (the Brussels Regulation).
The Proposal contains important changes which will be welcomed by the global dispute resolution communities, such as ensuring effect is given to exclusive jurisdiction and arbitration agreements (although not extending to agreements in favour of non-EU courts or arbitral seats).
Other suggestions give cause for concern. For example, it is proposed to extend the application of the jurisdiction rules set out in the Brussels Regulation to non-EU defendants thereby largely replacing the existing national jurisdiction rules. This could mean that some claimants who can now bring proceedings in English courts (for example where a contract has been entered into or breached in England) would no longer be able to do so. It is also proposed to abolish the special enforcement procedure (exequatur) and to make all EU judgments directly enforceable across EU states resulting in the loss of safeguards defendants currently have against the enforcement of judgments from other EU states.
Herbert Smith has responded to the Ministry of Justice consultation on whether to opt in to the negotiations and the consequent changes, which closed on 11 February. For more information on the proposals see post.
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