Technology Solicitors &
Internet Lawyers
Private International Law - Exclusive Jurisdiction Clauses
Commercial lawyers often insert law and jurisdiction clauses in contracts in the event of
a dispute stating that only English law will apply without ensuring that the
words achieve the aim of the clause.
An Application of the Law
The Court of Appeal in Sabah Shipyard (Pakistan) Ltd v The Islamic Republic of Pakistan[2002] has stated that
such a clause will not necessarily give English courts exclusive jurisdiction. The clause in question reads as follows: 'Each party hereby
consents to the jurisdiction of the Courts of England for any action filed by the other Party under this Agreement to resolve any dispute between the Parties
and may be enforced in England.'
Waller LJ was unconvinced that the clause was
exclusive. He preferred the view of Hobson J (as he then was) in Cannon
Screen Entertainment Ltd v Handmade Films (Distributors) Ltd which dealt with the
following clause: 'This agreement
shall be construed and interpreted pursuant to laws of England and the parties
hereby consent and submit to the jurisdiction of the Courts of England in
connection with any dispute arising hereunder.'
Hobson J decided that the Cannon Screen clause
was not exclusive. The parties submitted to the jurisdiction of the English
courts, but not necessarily exclusively. Accordingly,
Waller LJ decided that the Sabah Shipyard Clause was not exclusive
either. The parties could, but were not obliged to refer their dispute to an
English court.
Ensuring Exclusive Jurisdiction
To ensure exclusivity you must use the
word "exclusive" and/or demonstrate clearly that the parties will submit all
disputes to the English courts. A model clause could read as follows: 'The parties to this agreement agree to
submit all disputes arising under this agreement to the exclusive jurisdiction
of the courts of England and Wales.' Under this clause any action in a non-English court would be in breach
of contract.
Back to Top
NEED TO KNOW MORE?
For further information on ecommerce, contact Maitland
Kalton or Julian Danobeitia
or call us on +44 (0)20 7278 1817
Kaltons Solicitors, Suite 302, Spitfire Studios, 63-71 Collier Street, London, N1 9BE. Telephone +44 (0)20 7278 1817; Fax: +44 (0)207 278 1835.
© Kaltons Solicitors 2002. All rights reserved.
