International Commercial Litigation

Description

The new edition of this highly regarded work has been fully updated to reflect current trends and concerns in commercial litigation practice. It considers the many significant changes in the law since the first edition, and how they affect both the structure and drafting of commercial transactions, and the strategic choices of litigants. It includes extensive treatment of the recast Brussels I Regulation, which takes effect from January 2015, and which will significantly affect the handling of cross-border disputes. It offers extended analysis of important recent decisions including VTB v Nutritek, The Alexandros T, and Star Reefers v JFC. The book is a definitive account of the law and practice of international commercial litigation in the English courts, which describes the present state of the law, and articulates its underlying principles. It is intended to be of value to both specialist and non-specialist practitioners, and, by setting the principles of private international law in a practical context, to scholars in the field. The book offers an account of the subject which is comprehensive, and sophisticated in its analysis, but firmly grounded in addressing the challenges and concerns facing practitioners. The role of commercial litigation is examined, not merely in the resolution of disputes, but as an aspect of commercial practice. A feature of the book is its focus on evolving areas of practice, and issues of difficulty, with an emphasis on problematic decisions, and recent legislative changes. Particular emphasis is placed on how the principles established by the higher courts are applied in the Commercial Court. Where the law is uncertain or controversial, the rival arguments are examined and solutions considered. Emphasis is given to the impact of litigation on cross-border transactions, and its effect on legal risk. Mechanisms for managing the risks associated with cross-border litigation are extensively discussed, with particular emphasis on the drafting of effective jurisdiction and governing law clauses. The first edition was highly regarded and was cited with approval by the courts in a number of key decisions including Blue Sky One Ltd v Mahan Air (March 2010), Royal & Sun Alliance plc v Rolls Royce plc (July 2010), Sebastian Holdings Inc v Deutsche Bank AG (Aug 2010, Court of Appeal), Glacier Reinsurance AG & v Gard Marine & Energy Ltd (Oct 2010, Court of Appeal), Faraday Reinsurance Co Ltd v Howden North America Inc (Nov 2011, Commercial Court), Mauritius Commercial Bank Ltd v Hestia Holdings Ltd (May 2013, Commercial Court), Antonio Gramsci v Lembergs (June 2013, Court of Appeal), and The Alexandros T (6 Nov 2013, Supreme Court). Cover Half title Title Copyright Dedication Contents—Summary Contents—Detailed Table of Cases Table of Legislation Table of Principal Works Cited Abbreviations I Introduction 1. Introduction I. Legal Risk and Commercial Disputes II. The Anatomy of Risk A. Species of legal risk B. Risk, opportunity, and uncertainty III. Concepts and Context A. The practical context B. The dynamics of multistate litigation C. Objectives of legal regulation D. Objectives of English law E. Principles of English law F. Tensions in English law G. Legal risk in English law H. The conceptual structure of the EU regime I. English law and EU law IV. Costs in International Commercial Litigation V. Future Developments VI. The Enquiry A. Scope B. Assumptions C. Structure II Legal Risk And MUltistate Litigation 2. Managing Litigation Risk I. Litigation Risk II. Dispute-resolution Clauses A. The anatomy of dispute-resolution clauses B. Commercial dispute-resolution clauses III. The Legal Role of Jurisdiction Agreements A. Five regimes B. The Hague Convention C. Agreements designating EU courts D. Agreements designating non-EU courts IV. The Interpretation of Jurisdiction Agreements A. The applicable law B. Principles of interpretation C. The scope of jurisdiction agreements D. The effect of the agreement V. Enforceable Jurisdiction Agreements A. Agreements designating EU courts: Brussels I bis B. Agreements designating EU courts: Brussels I C. Agreements designating non-EU courts D. The incorporation of jurisdiction agreements VI. Enforceability and Asymmetric Agreements A. Summary B. Context C. Effectiveness and Article 25 D. Asymmetric agreements beyond Brussels I bis E. Hybrid jurisdiction/arbitration clauses VII. Enforceability Against Third Parties A. Litigation risk and privity B. Third parties as constructive parties C. A non-contractual solution: independent consent D. Unanswered questions VIII. The Risk of Pre-emptive Proceedings A. Nature of the risk B. Pre-emptive proceedings in a non-EU state C. Pre-emptive proceedings in an EU state IX. Discretionary Non-enforcement A. Discretion and risk B. Legal framework C. Discretion and the Hague Convention D. Discretion in English law X. Collateral Enforcement A. Damages against a pre-emptive claimant B. Damages against a claimant’s advisers C. Indemnity clauses D. Waiver clauses 3. Managing Transaction Risk I. The Anatomy of Transaction Risk A. Ineffective transactions B. Ineffective governing law clauses II. The European Regime III. Negotiation Risk IV. Formation Risk V. Counterparty Risk A. Introduction B. Counterparty risks VI. Initial Performance Risk A. Two risks B. Types of initial risk C. Compliance with the mandatory laws of the forum D. Compliance with the public policy of the forum E. Compliance with the law of the place of performance F. Compliance with the most connected law G. Compliance with the proprietary law VII. Supervening Performance Risk A. Nature of the risk B. Limits to supervening performance risk C. Legal change in the contractual law D. Legal change to a counterparty’s status E. Legal change in the place of performance F. Forced transfer of rights and obligations VIII. Performance Risk and Pre-Regulation Contracts IX. Recharacterization Risk A. Adverse recharacterization B. Characterizing an issue C. Characterizing a transaction III Liability And Recovery In Multistate Litigation 4. The Dynamics of Choice of Law I. Risk, Practice, and the Conflicts Process II. The Conflicts Process III. Mandatory Application of the Forum’s Law A. The local law of the forum B. The province of local law: procedure C. Overriding local rules D. Overriding local norms: public policy IV. Voluntary Reliance on Foreign Law V. Allocation to a Choice-of-Law Regime: Characterization A. General principles B. Characterization in the EU regimes VI. The Concept of the Applicable Law: Renvoi A. Renvoi in practice B. Renvoi in principle 5. The Laws Governing Multistate Transactions I. Introduction A. Transactions in litigation B. The European regime II. The Law Governing Contractual Issues A. Generic and specific contracts B. The scope of the contractual law C. Transaction risk D. Defining the contractual law E. Identifying the contractual law F. Express choice of the contractual law G. Implied choice of the contractual law H. Procedural choice of the contractual law I. The contractual law in the absence of choice J. The law governing related contracts K. The law governing pre-Regulation contracts III. The Law Governing Transfers of Title A. Connecting factors B. Title to tangible movables IV. The Law Governing the Assignment of Debts A. The risk of ineffective assignments B. The EU regime C. The Article 14 framework D. Article 14 and complex transactions E. Future developments 6. The Laws Governing Recovery I. Transaction Loss II. Concurrent Claims III. Full Value Recovery A. Costs, currency risk, and interest B. Costs and net recovery C. Interest and cross-border claims D. Judgment in the currency of loss IV. Contractual Recovery V. Non-Contractual Recovery: Tort and Culpa in Contrahendo A. Two regimes B. The 1995 Act C. Introduction to Rome II D. The primary rule: party autonomy E. The default rules in tort F. Culpa in Contrahendo VI. Non-Contractual Recovery: Restitution VII. Non-Recovery: Exemption Clauses IV Commencing And Preventing Proceedings 7. Strategic Choices I. Strategy and Litigation II. Investment, Settlement, and Litigation III. The Legitimacy of Forum Shopping IV. A Claimant’s Choices A. The decision to claim B. The choice of cause of action C. The choice of legal mode D. The choice of forum V. A Defendant’s Choices VI. The Legal Framework of Forum Selection A. Procedural and substantive issues B. International civil procedure C. The substantive law in transnational proceedings 8. The Framework of Jurisdiction I. Two Regimes II. The Framework of the European regime A. The European regime in commercial disputes B. Principles governing the EU regime III. The Framework of English National Law A. Introduction to the English law model B. Defendants in England and Wales C. Defendants outside England and Wales IV. Effecting Service A. The significance of service B. Service in England C. Service abroad V. Pervasive Problems in Jurisdiction Disputes A. Four problems B. Interlocutory findings in jurisdiction disputes C. Claims related to a contract D. Jurisdictional challenges and summary judgment 9. Establishing and Challenging Jurisdiction I. Venue Risk and Corporate Strategy II. Establishing and Challenging Jurisdiction A. Two regimes B. Grounds of jurisdiction III. Submission to the English Court A. The European regime B. English law IV. Corporate Presence in England A. Introduction B. Corporate domicile C. A place of business V. Presence of an Agent in England A. Corporations domiciled in an EU or EFTA state B. Corporations domiciled in a non-EU, non-EFTA state VI. Breach of Contract in England A. Breach by an EU or EFTA-domiciled defendant B. Breach by non-EU, non-EFTA defendants VII. Breach of a Contract Subject to English Law VIII. Claims in Tort Relating to Damage in England A. EU and EFTA-domiciled defendants B. Non-EU, non-EFTA defendants IX. Non-Contractual Claims Relating to a Contract A. Accessory claims B. EU and EFTA-domiciled defendants C. Non-EU, non-EFTA defendants X. Claims Relating to Property in England XI. Collateral Claims against Co-Defendants A. Litigation risk and tactical proceedings B. EU and EFTA-domiciled co-defendants C. Non-EU, non-ETFA co-defendants XII. Collateral Claims against Third Parties A. EU and EFTA-domiciled third parties B. Non-EU, non-EFTA third parties 10. Excluded Claims I. Claims Excluded in Commercial Disputes II. Non-Justiciable Laws III. Non-Justiciable Conduct IV. Immunity of State Defendants A. The existence of immunity B. Immunity and state assets V. Procedural Fairness and Excluded Claims 11. Declining Jurisdiction: The European Regime I. Introduction II. One Regime, Three Instruments III. Objectives of the European Regime IV. Declining Jurisdiction: Brussels I bis A. Mechanisms allocating jurisdiction B. Underlying principles C. The scope of Articles 29 and 30 D. Seisin defined—Article 32 E. Bundled claims and lis pendens F. Prior congruent proceedings—Article 29 G. Prior related proceedings—Article 30 12. Declining Jurisdiction: The European Regime and Third States I. Introduction II. Declining Jurisdiction: Brussels I bis A. Introduction to Articles 33 and 34 B. Identical proceedings in a third state C. Related proceedings in a third state D. Problems and Uncertainties III. The Hague Convention IV. The Residual Role of National Law A. Introduction B. The role of national law V. Declining Jurisdiction: Regulation 44/2001 A. The problem stated B. The English authorities VI. Procedural Qualifications to Jurisdiction A. Abuse of process dismissal B. Case-management stays 13. Declining Jurisdiction: English National Law I. Adjudicatory Discretion A. The appropriate forum B. A residual discretion II. The Test of Appropriateness A. The test established: The Spiliada B. The test calibrated: VTB Capital C. The procedural framework D. Forum conveniens on appeal E. Terms and undertakings III. Applying the Test A. Viable English proceedings B. An available foreign forum C. The optimal forum D. Access to justice E. The applicable law and the forum conveniens IV. Problems of Principle A. Access to justice B. Comity C. The limits of interlocutory adjudication 14. Procedural Objections to Proceedings I. Procedural Objections II. Dismissal for Abuse of Process III. Case-Management Stays A. The power to stay B. Case management and the C. Case management and parallel proceedings D. Case management and exclusive jurisdiction agreements E. Case management on appeal F. Case management and the EU jurisdiction regime G. Case management and access to justice 15. Preclusive Proceedings I. Preclusive Proceedings II. The Control of Relitigation A. Relitigation and estoppel B. Relitigation and abuse of process III. Preclusive Declarations A. Strategy and preclusive declarations B. Preclusive foreign proceedings C. Preclusive English proceedings 16. Restraining Foreign Proceedings I. Elements of Relief A. Objectives B. Types of anti-suit injunction C. Conceptual basis D. Effectiveness E. The application for relief F. The scope of appeal G. Anti-suit injunctions and costs H. Terminology and concepts I. Three requirements II. Jurisdiction to Grant Relief III. Grounds for Relief A. Injustice as the measure B. Substantive and procedural rights IV. Protecting Substantive Rights A. The right to the agreed venue B. The right to the governing law V. Protecting Procedural Rights A. Types of unconscionable conduct B. Due process in English proceedings C. Denial of justice in the foreign court VI. Discretion to Grant Relief A. Importance of the discretionary stage B. Injustice to the respondent C. Compliance with comity VII. Anti-suit Injunctions and EU Law A. No mandatory relief B. Injunctions within the EU C. The scope of Turner D. Anti-suit injunctions and Brussels I bis VIII. Anti-suit Injunctions in Principle A. Underlying principles B. Possible challenges V Effective Enforcement 17. Preserving Judgment Assets I. Risk Assessment and the Preservation of Assets A. Enforcement risk B. Litigation risk II. Orders Preserving Assets A. Freezing and disclosure orders B. Receivership orders C. Pre-and post-judgment orders D. Orders affecting third parties III. The Elements of Relief A. The legal framework B. Underlying principles C. The definition of assets D. Obtaining and challenging relief E. The effectiveness of relief F. Protecting defendants and third parties IV. International Freezing Injunctions A. The foreign element B. Jurisdiction V. Preserving Foreign Assets A. Obtaining relief B. Exporting the injunction C. Domestic sanctions: contempt of court VI. The Disclosure of Foreign Assets A. The importance of disclosure B. Obtaining disclosure C. Disclosure and new proceedings D. Disclosure ancillary to foreign proceedings E. Disclosure and foreign assets F. Disclosure from third parties VII. Injunctions Collateral to Foreign Proceedings A. Problems of analysis B. The legal framework: judicial proceedings C. The legal framework: arbitration D. Collateral relief and foreign assets E. A five-stage test F. Service of the claim G. Relief otherwise available H. Section 25 jurisdiction I. Section 25 discretion J. Residual discretion VIII. Preserving Assets in the European Judicial Area A. The framework B. Post-judgment relief C. Pre-judgment relief D. Measures within Article 35 E. Article 35 and foreign assets F. Article 35 and unspecified assets G. Article 35 and national law H. Enforcement against foreign assets I. The European Account Preservation Order IX. Third Party Freezing Orders A. Species of third party order B. Chabra orders C. Thai Lignite orders D. Third parties and state immunity E. The assets of wholly owned companies 18. Enforcing Judgment Debts I. Enforcement Risk II. Enforcing English Judgments III. Enforcing Foreign Judgments: Introduction IV. Enforcing Foreign Judgments: The Statutory Regime V. Enforcing Foreign Judgments: The Common Law Regime A. Procedure for enforcement B. Conditions for enforcement C. Defences to enforcement VI. Enforcing Foreign Judgments: The European Regimes A. Introduction B. Brussels I bis C. Brussels I and the Lugano Convention VI The Conduct Of Proceedings 19. Procedure, Costs, and Evidence in Multistate Disputes I. Procedures Regulating Multistate Disputes II. The Recovery of Costs in Multistate Disputes A. Costs, venue, and risk B. Costs in English law III. Obtaining Evidence Abroad A. Foreign evidence in practice B. Foreign evidence in principle C. Obtaining evidence in EU states D. Obtaining evidence in non-EU states E. Foreign blocking statutes 20. The Proof of Foreign Law I. The Practical Context II. Legal Risk and Foreign Law III. Establishing Foreign Law A. Expert evidence B. Alternative approaches IV. Foreign Law on Appeal A. General principles B. Statutory appeals on issues of law V. Foreign Law and the Construction of Documents VI. Foreign Law in Interlocutory Proceedings A. The problem of limited evidence B. Solutions VII. Failure to Establish Foreign Law A. The default rule B. Shaker v Al-Bedrawi C. The scope of the default rule VIII. Problems of Principle A. Introduction B. The court’s objective C. The legal status of foreign law Index