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.
Traditionally, the English courts have, in appropriate circumstances, upheld exclusive jurisdiction clauses. This has been by means of an anti-suit injunction issued by the English courts. The injunction restrains a party from bringing or continuing proceedings in another jurisdiction in relation to a dispute under the relevant contract where the existing or contemplated proceedings in that other jurisdiction are or would be in clear breach of the exclusive jurisdiction clause. Further, the English courts have occasionally exercised their discretion in granting an anti-suit injunction preventing the continuation of vexatious or oppressive proceedings in another jurisdiction.
