Cause for injunction
The ECJ's recent decisions in Gasser and Grovit undermine the efficacy of exclusive jurisdiction clauses, and may lead to delays in the resolution of certain disputes and add to the risk and cost of litigation, say Andrew Dodd and Nick Marsh
Parties to a commercial contract will often state that any disputes arising from or in connection with that contract will be subject to the exclusive jurisdiction of the courts of a particular country. The intention of such clauses, as reflected in Article 23 of Council Regulation (EC) 44/2001, is to promote legal certainty and prevent litigation in foreign – and what the parties may perceive as potentially undesirable – jurisdictions.
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