international commercial...

International Commercial Litigation

Taking a fresh and modern approach to the subject, this fully revised and restructuredtextbook provides everything necessary to gain a good understanding of internationalcommercial litigation. Adopting a comparative stance, it provides extensive coverage ofUS and Commonwealth law, in addition to the core areas of English and EU law. Extractsfrom key cases and legislative acts are designed to meet the practical requirements oflitigators and as well as explaining the ideas behind legal provisions. Significant updatesinclude new material on the recast of the Brussels I Regulation, the impact of EU law onchoice-of-court agreements and arbitration agreements and controversial decisions onantisuit injunctions. A companion website will feature important updates to the law.

Trevor C. Hartley is Professor Emeritus of Law at the London School of Economics, wherehe specializes in private international law and European Union law.

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Cambridge University Press978-1-107-09589-2 - International Commercial Litigation: Text, Cases and Materials on PrivateInternational Law: Second EditionTrevor C. HartleyFrontmatterMore information

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InternationalCommercial Litigation

Text, Cases and Materials onPrivate International Law

Second Edition

Trevor C. Hartley






University Printing House, Cambridge CB2 8BS, United Kingdom

Cambridge University Press is part of the University of Cambridge.

It furthers the University’s mission by disseminating knowledge in the pursuit ofeducation, learning and research at the highest international levels of excellence.

www.cambridge.orgInformation on this title: www.cambridge.org/9781107479562

© Trevor C. Hartley 2015

This publication is in copyright. Subject to statutory exceptionand to the provisions of relevant collective licensing agreements,no reproduction of any part may take place without the writtenpermission of Cambridge University Press.

First published 2009Second edition 2015

Printed in the United Kingdom by TJ International Ltd. Padstow Cornwall

A catalogue record for this publication is available from the British Library

Library of Congress Cataloguing in Publication dataHartley, Trevor C., author.International commercial litigation : text, cases and materials on private international law /Trevor Hartley. – Second edition.

pages cmISBN 978-1-107-09589-2 (Hardback) – ISBN 978-1-107-47956-2 (Paperback)1. Conflict of laws–Commercial law–European Union countries. 2. Conflict of laws–Commercial law–United States. 3. Conflict of laws–Commercial law–GreatBritain. 4. International business enterprises–Law and legislation–European Unioncountries. 5. International business enterprises–Law and legislation–UnitedStates. 6. International business enterprises–Law and legislation–Great Britain. I. Title.K7340.H37 2015346.07–dc23 2014050298

ISBN 978-1-107-09589-2 HardbackISBN 978-1-107-47956-2 Paperback

Cambridge University Press has no responsibility for the persistence or accuracyof URLs for external or third-party internet websites referred to in this publication,and does not guarantee that any content on such websites is, or will remain,accurate or appropriate.






Law is made for man, not man for the law.






Contents

Table of panels xxvList of figures xxixPreface to the first edition xxxiPreface to the second edition xxxiiiAcknowledgements: copyright xxxvAcknowledgements: personal xxxviiTerminology xxxviiiTable of equivalences xxxixTable of Latin phrases xliList of abbreviations xliiTable of cases xliiiTable of cases (Court of Justice of the European Union, numerical order) lxxiTable of legislative instruments lxxvi

PART I STARTING OFF 1

1 Introduction 31 Private international law 32 Names and what they mean 33 What is it based on? 54 International uniformity of result: a grand objective? 5

PART II JURISDICTION 9

2 Jurisdiction: an analysis 111 What is jurisdiction? 112 Jurisdiction in personam 123 Jurisdiction in rem 124 Objectives 12

4.1 Conflicting judgments 134.2 Enforcement 134.3 Keeping the parties to their agreements 144.4 Wasting time and resources 144.5 Offending foreign States 14

vii






4.6 Fairness to the defendant 144.7 Countervailing considerations 15

5 Principles of jurisdiction in personam 156 Principles of jurisdiction in rem 16Further reading 17

3 Jurisdiction under EU law 181 Background 182 Origin of Brussels 2012 193 The Lugano Convention 204 Basic principles 215 Defendants from third countries 226 Domicile 24

6.1 Area of domicile 246.2 Domicile of natural persons (individuals) 256.3 United Kingdom rules of domicile (individuals) 256.4 Domicile of legal persons (corporations) 276.5 The role of domicile 29

7 Jurisdiction irrespective of domicile 298 Which instrument applies? 309 Subject-matter scope 31

9.1 What law decides? 31LTU v. Eurocontrol 32

9.2 Applying the test 34Netherlands v. Rüffer 35Gemeente Steenbergen v. Baten 37Commissioners for Revenue & Customs v. Sunico 39

9.3 Interim remedies 41Realchemie Nederland v. Bayer CropScience 41

Further reading 43General works on the Brussels Convention, the Brussels

Regulation and the Lugano Convention 43

4 EU law: special jurisdiction 441 Article 7 44

1.1 Contracts 451.1.1 When does a claim relate to a contract? 45

Brogsitter v. Fabrication de Montres Normandes 45Handte v. TMCS 48

1.1.2 The place of performance 511.1.3 The obligation in question 511.1.4 The revised version of Article 7(1) 52

Rehder v. Air Baltic Corporation 53Car Trim v. KeySafety Systems 56

viii CONTENTS






Falco Privatstiftung and Rabitsch 61Corman-Collins v. La Maison du Whisky 62

1.1.5 Contracts not covered by Article 7(1) 651.2 Tort 65

1.2.1 The ‘harmful event’ 65Bier v. Mines de Potasse d’Alsace 65Marinari v. Lloyds Bank 67

1.2.2 Declarations of non-liability 69Folien Fischer v. Ritrama 69

1.2.3 Internet torts 72Pinckney v. Mediatech 72

1.3 Branches, agencies and other establishments 741.3.1 What constitutes a branch, agency or other

establishment? 751.3.2 What disputes are covered? 75

Lloyd’s Register of Shipping v. Campenon Bernard 76Anton Durbeck v. Den Norske Bank 78

2 Multiple parties 80Reisch Montage v. Kiesel Baumaschinen 81

3 Counterclaims 834 Weak parties 84

4.1 Employment contracts 845 Exclusive jurisdiction 86

5.1 Scope 875.1.1 Immovable property 88

Webb v. Webb 88Weber v. Weber 89

5.1.2 Companies 90Berliner Verkehrsbetriebe (BVG) v. J P Morgan

Chase Bank 915.1.3 Registered intellectual-property rights 94

Duijnstee v. Goderbauer 94Gesellschaft für Antriebstechnik (GAT) v. Lamellen und

Kupplungsbau Beteiligungs (LuK) 965.2 Non-member States 99

6 Procedure 1007 Conclusions 101Further reading 102

5 The traditional English rules 1031 Introduction 1032 Service of the claim form 103

Colt Industries Inc. v. Sarlie 105Maharanee of Baroda v. Wildenstein 108

CONTENTS ix






3 Service on a company 1103.1 Introduction 1103.2 Company’s own office 111

Dunlop Pneumatic Tyre Co. Ltd v. A. G. Cudell& Co. 112

South India Shipping v. Bank of Korea 1143.3 Acting through an agent 115

Adams v. Cape Industries 1153.4 Subsidiaries 1173.5 Conclusions 118

4 Service outside the jurisdiction 1184.1 Introduction 1184.2 Contracts 120

4.2.1 Contract made within the jurisdiction 1204.2.2 Made by or through an agent trading or residing within

the jurisdiction 1214.2.3 Governed by English law 1214.2.4 Choice-of-court clause 1224.2.5 Breach committed within the jurisdiction 1224.2.6 Declaration that no contract exists 122

4.3 Tort 122Metall und Rohstoff v. Donaldson Lufkin

& Jenrette 1224.4 Multiple parties 1244.5 Weak parties 124

5 Jurisdiction by consent 1246 Exclusive jurisdiction 1257 Conclusions 126Further reading 127

6 Developments in Canada 1281 Introduction 1282 Ontario 1293 Personal-injury tort cases in the Ontario Court of Appeal 130

Muscutt v. Courcelles 130Gajraj v. DeBernardo 139Lemmex v. Sunflight Holidays Inc. 140

4 Uniform law 1415 Personal-injury tort cases in the Supreme Court of

Canada 143Club Resorts Ltd v. Van Breda 143

6 Conclusions 147Further reading 147

7 US law: an outline 1481 The US legal system 148

1.1 Federal jurisdiction 149

x CONTENTS






1.2 Applicable law 1511.2.1 State courts 1511.2.2 Federal courts 151

2 International jurisdiction 1522.1 State courts 152

2.1.1 The ‘minimum contacts’ doctrine 153International Shoe Co. v. State of Washington 153

2.1.2 Specific jurisdiction 155World-Wide Volkswagen Corporation v.

Woodson 1552.1.3 General jurisdiction 158

Helicopteros Nacionales de Colombia v. Hall(‘Helicol’ case) 159

2.1.4 Transient jurisdiction 161Burnham v. Superior Court of California 161

2.2 Federal courts 167United States of America v. Swiss

American Bank 1683 Venue 1714 The United States and Europe compared 172

4.1 Cases where European jurisdiction is moreextensive 172

4.2 Cases where American jurisdiction is moreextensive 1744.2.1 Individuals 1744.2.2 Companies 174

4.3 Assessment 1755 Conclusions 177Further reading 178

8 Choice-of-court agreements 1791 Introduction 179

1.1 Court specified 1791.2 Exclusive jurisdiction 1791.3 Asymmetric choice-of-court agreements 1801.4 Proceedings covered 180

2 The European Union 1802.1 Introduction 1802.2 Consent and form 182

2.2.1 Sub-paragraph (a) 183Berghoefer v. ASA 184

2.2.2 Sub-paragraph (b) 1852.2.3 Sub-paragraph (c) 185

Mainschiffahrts-Genossenschaft eG v. Les GravièresRhénanes 186

2.2.4 Electronic communications 1882.2.5 Relationship with Article 7(1) 189

CONTENTS xi






2.3 Choice-of-court agreement in the constitution of acompany 189

2.4 Substantive validity 190Elefanten Schuh v. Jacqmain 191

2.5 Effect on third parties 1932.6 Insurance contracts, consumer contracts and

employment contracts 1942.7 The Union and the outside world 1952.8 Conclusions 198

3 England 1983.1 The general principle 198

The Fehmarn 198The Eleftheria 200

3.2 No fair trial 202Carvalho v. Hull Blyth Ltd 203

3.3 Mandatory rules 2053.4 Conclusions 207

4 The United States 208M/S Bremen v. Zapata Offshore Company 208Carnival Cruise Lines v. Shute 212Vimar Seguros v. M/V Sky Reefer 216

5 The Hague Choice-of-Court Convention 2206 Conclusions 222Further reading 223

9 Jurisdictional conflicts: the common-law approach 2241 Introduction 2242 England 226

2.1 Forum non conveniens 2262.1.1 Historical development 2262.1.2 The modern law 231

Spiliada Maritime Corporation v. Cansulex 2312.1.3 No fair trial in the foreign country 240

Altimo Holdings v. Kyrgyz Mobil Tel Ltd 2402.1.4 Conclusions 244

2.2 Antisuit injunctions 2442.2.1 When injunctions will be granted 244

Société Nationale Industrielle Aérospatiale v. LeeKui Jak 244

2.2.2 The natural forum 2492.2.3 Conflicting injunctions 2502.2.4 Conclusions 251

3 The United States 2533.1 Forum non conveniens 253

Piper Aircraft v. Reyno 254

xii CONTENTS






3.2 Antisuit injunctions 2594 Conclusions 259Further reading 259

10 Jurisdictional conflicts: the EU approach 2611 Lis pendens 261

1.1 The same cause of action 263Gubisch Maschinenfabrik v. Palumbo 263

1.2 The same parties 2641.3 Related proceedings 2651.4 Proceedings in non-member States 2651.5 Conclusions 267

2 Forum non conveniens 268Owusu v. Jackson 269

3 Antisuit injunctions 277Turner v. Grovit 277

4 Choice-of-court agreements and the ‘Italian torpedo’ 2815 Arbitration and the Brussels I Regulation 284

5.1 Brussels 2012 2855.1.1 The Regulation does not apply to arbitration 2855.1.2 Relationship with the New York Convention 2855.1.3 Recital 12 286

5.2 What is excluded? 2885.2.1 Appointment of arbitrators 288

Marc Rich v. Società Italiana Impianti 2885.2.2 Provisional (interim) measures in support of arbitration:

asset-freezing orders 292Van Uden v. Deco Line 292

5.2.3 Antisuit injunctions 294Allianz v. West Tankers 294

5.2.4 Damages for bringing proceedings in anotherMember State 298

5.3 Recognition of judgments and awards 2995.4 Conclusions 301

Further reading 301

11 Special topic I: product liability 3031 England 303

Distillers Co. v. Thompson 304Castree v. Squibb Ltd 307

2 Canada 308Moran v. Pyle National (Canada) Ltd 308

3 The United States 310Asahi Metal Industry v. Superior Court of

California 310McIntyre Machinery v. Nicastro 314

CONTENTS xiii






4 The European Union 321Zuid-Chemie v. Philippo’s Mineralenfabriek 321Kainz v. Pantherwerke 323

5 Conclusions 324

12 Special topic II: Defamation 3251 Introduction 3252 EU law 326

2.1 The general rule 326Shevill v. Presse Alliance 326

2.2 The Internet 329eDate Advertising v. X 329

3 English law 3343.1 The traditional view 334

Berezovsky v. Michaels 3353.2 The application of the traditional view to the

Internet 338King v. Lewis 338

3.3 Defamation and free speech 3413.4 The American reaction 3433.5 The Defamation Act 2013 344

Further reading 346

PART III FOREIGN JUDGMENTS 347

13 Introduction to Part III 3491 Principles 3492 Recognition and enforcement 3493 Theories 3494 Giving effect to a judgment 3505 Res judicata and estoppel 350Further reading 351

14 EU law 3521 Introduction 3522 Principles 3533 Jurisdiction of the court of origin 355

3.1 Four exceptions 3563.2 Exclusive jurisdiction: non-member States 3563.3 Conventions with non-member States 357

4 Judgments outside the scope of the Regulation 3585 Public policy 358

Krombach v. Bamberski 358Gambazzi v. DaimlerChrysler Canada Inc. 365

xiv CONTENTS






6 Conflicting judgments 3686.1 Judgments from the State addressed 3696.2 Judgments from another State 3696.3 Judgments outside the scope of the Regulation 369

Hoffmann v. Krieg 3697 Conflicts with an arbitration award 3728 Provisional measures 3729 Choice-of-court agreements 37310 Arbitration agreements 37311 Fraud 37312 Default judgments 374

12.1 When does time begin to run? 37612.2 Bringing proceedings to set the default

judgment aside 378ASML Netherlands v. Semiconductor Industry

Services (SEMIS) 378Apostolides v. Orams 383

12.3 Giving reasons in the default judgment 385Trade Agency v. Seramico Investments 386

12.4 Conclusions 39013 Rulings on jurisdictional issues 390

Gothaer Allgemeine Versicherung v. Samskip 39014 Conclusions 394Appendix: principal grounds on which recognition may berefused 394Further reading 395

15 English law: jurisdiction 3961 Theoretical basis for recognition and enforcement 3962 Legislation 3973 Jurisdiction 398

3.1 Home-court jurisdiction 3993.1.1 Individuals 399

Adams v. Cape Industries 399Richman v. Ben-Tovim 401

3.1.2 Corporations 403Vogel v. Kohnstamm Ltd 403

3.2 Claim-based jurisdiction 4063.3 Submission 4063.4 Exceptions 4083.5 Conclusions 409

Further reading 409

16 English law: defences 4101 Fraud 410

CONTENTS xv






Owens Bank v. Bracco 411Owens Bank Ltd v. Fulvio Bracco and Bracco Industria

Chimica SpA 4162 Public policy, natural justice and human rights 4183 Taxes, penalties and other rules of public law 420

Huntington v. Attrill 420United States of America v. Inkley 424

4 Conflicting judgments 4265 Res judicata and issue estoppel 426

The Sennar (No. 2) 4285.1 English law or EU law? 4315.2 Judgment for the claimant 432

Further reading 432

17 The Canadian conflicts (judgments) revolution 4341 Jurisdiction of the foreign court 434

Morguard Investments Ltd v. De Savoye 4342 Enforcement of non-money judgments 443

Pro Swing Inc. v. Elta Golf Inc. 4433 Conclusions 445Further reading 445

18 US law: some highlights 4461 Reciprocity 4462 Uniform legislation 446

Bank of Montreal v. Kough 448Appendix: foreign-judgment recognition legislation(UK and US) 451Major heads of jurisdiction of the foreign court 451Other requirements and defences 452Further reading 452

PART IV PROCEDURE 453

19 Freezing assets 4551 Introduction 4552 Procedure 456

Third Chandris Shipping Corporation v.Unimarine SA 456

3 Third parties 458Z Ltd v. A–Z 458

4 Jurisdiction 4635 Worldwide orders 464

5.1 Worldwide orders in aid of foreign proceedings 464

xvi CONTENTS






Crédit Suisse Fides Trust SA v. Cuoghi 465Motorola Credit Corporation v. Uzan (No. 2) 470

5.2 Worldwide orders and third parties 475Derby & Co. Ltd v. Weldon (Nos. 3 and 4) 476Bank of China v. NBM LLC 477

5.3 Conclusions 4796 Commonwealth countries 4797 The United States 480

Grupo Mexicano de Desarrollo SA v. Alliance BondFund Inc. 480

United States v. First National City Bank 4818 The European Union 483

8.1 Jurisdiction over the substance 483Denilauler v. Couchet Frères 484

8.2 No jurisdiction over the substance 486Van Uden v. Deco Line 486Mietz v. Intership Yachting Sneek 490

8.3 Enforcing a judgment from another Member State 493Banco Nacional de Comercio Exterior SNC v. Empresa

de Telecomunicaciones de Cuba SA 4948.4 When does the Regulation apply? 497

8.4.1 Subject-matter scope 4978.4.2 Judgment in another Member State 4988.4.3 No judgment in another Member State 4988.4.4 A court of another Member State is seised first 4988.4.5 No other Member State court is seised 4988.4.6 Conclusions 499

Further reading 499

20 Obtaining evidence abroad: forum procedures 5011 Evidence from parties to the proceedings 501

1.1 England 501Lonrho Ltd v. Shell Petroleum Co. Ltd 502

1.2 United States 506Société Internationale v. Rogers 506

2 Evidence from third parties 5092.1 England 509

Bankers Trust Co. v. Shapira 509Mackinnon v. Donaldson, Lufkin & Jenrette Securities

Corporation 511Altertext Inc. v. Advanced DataCommunications Ltd 516

2.2 The United States 519In re Grand Jury Proceedings Bank of

Nova Scotia 519

CONTENTS xvii






3 Foreign proceedings 524X AG v. A Bank (also known as X, Y and Z v. B) 524


21 Obtaining evidence abroad: international co-operation 5291 Introduction 5292 England 531

2.1 ‘Fishing expeditions’ 531In re Asbestos Insurance Coverage Cases 531

2.2 Civil or commercial matters 533In Re State of Norway’s Application 533

2.3 Protecting national sovereignty 540Westinghouse Electric Corporation Uranium Contract

Litigation 541Westinghouse Electric Corporation v. Duquesne

Light Co. 5433 The United States 5444 England: initiative by a party 545

South Carolina Insurance Co. v. AssurantieMaatschappij ‘de Zeven Provincien’ NV 545

5 The Hague Convention: a blocking device? 550Société Nationale Industrielle Aérospatiale v. United States

District Court for the Southern District of Iowa 5506 Conclusions 555Further reading 556

PART V CHOICE OF LAW 557

22 Introduction to choice of law 5591 Why apply foreign law? 5592 Traditional choice-of-law theory 560

2.1 The methodology of categorization 5602.2 Substance and procedure 5612.3 Some basic ideas 561

2.3.1 The personal law: individuals 5622.3.2 The personal law: companies 562

McDermott Inc. v. Lewis 5632.3.3 The lex situs 5672.3.4 The lex loci actus 567

2.4 Methodological problems and escape devices 5672.4.1 Characterization 5682.4.2 Renvoi 5692.4.3 Public policy 570

xviii CONTENTS






3 Choice-of-law rules in international instruments 5714 American theories 571

4.1 Interest analysis 5714.2 The primacy of forum law 5754.3 The ‘better-law’ theory 576

5 Proof of foreign law 576Anton Durbeck v. Den Norske Bank 578


23 Torts 5861 England: historical development 586

The Halley 586Phillips v. Eyre 587Machado v. Fontes 589

2 The Rome II Regulation: general rule 5922.1 The country in which the damage occurs 5922.2 Common habitual residence 592

2.2.1 Rules of the road 5932.2.2 Multi-party cases 5932.2.3 Meaning of ‘country’ 5932.2.4 Meaning of ‘habitual residence’ 595

2.3 Flexibility 5953 Pre-existing relationship 595

McLean v. Pettigrew 596M’Elroy v. M’Allister 597Babcock v. Jackson 599Neilson v. Overseas Projects Corporation ofVictoria Ltd 601

4 Common origin 604Dym v. Gordon 604Chaplin v. Boys 607

5 US law: interest analysis and the ‘better law’ theory 609Milkovich v. Saari 609Rong Yao Zhou v. Jennifer Mall

Restaurant Inc. 611Bernhard v. Harrah’s Club 612

6 The Rome II Regulation: special rules 6156.1 Product liability 616

6.1.1 Structure 6166.1.2 Primary rule 6166.1.3 Second-ranking rule 6166.1.4 Third-ranking rule 6176.1.5 Fourth-ranking rule 6176.1.6 Product marketed 617

CONTENTS xix






6.1.7 No rule applicable 6176.1.8 Conclusions 620

6.2 Intellectual property 6207 Defamation 6208 Choice of law by agreement 621Appendix: subject-matter scope of the Regulation 622Further reading 622

24 Contracts: the principle of party autonomy 6241 Introduction 6242 The theory of the proper law 6243 The Rome Convention 6294 The Rome I Regulation 630

4.1 Subject-matter scope 6304.2 International scope 6314.3 Meaning of ‘country’ 6314.4 Express choice 632

4.4.1 Freedom of choice 6324.4.2 Non-state law 632

4.5 Implied choice 632Amin Rasheed Shipping Corporation v. Kuwait

Insurance Co. 633Oldendorff v. Libera Corporation 636

4.6 Applicable law in the absence of choice 6394.6.1 Structure and general principles 6394.6.2 Meaning of ‘habitual residence’ 6424.6.3 Linked contracts 643

Bank of Baroda v. Vysya Bank 6444.6.4 The escape clause 648

Definitely Maybe Ltd v. Lieberberg GmbH 648Kenburn Waste Management Ltd v. Bergmann 652Intercontainer Interfrigo v. Balkenende

Oosthuizen 6534.6.5 Exceptions 6554.6.6 Carriage of goods 6554.6.7 Carriage of passengers 656

4.7 The problem of consent 6574.8 Capacity 6584.9 Other provisions 658

Further reading 659

25 Contracts: legal policy and choice of law 6601 Introduction 6602 Terminology 6603 The Rome I Regulation 661

xx CONTENTS






3.1 Purely domestic contracts 6623.2 Consumer contracts 6633.3 Individual employment contracts 664

Koelzsch v. Luxembourg 6673.4 Contracts concerning immovable property 6713.5 Overriding mandatory provisions 671

3.5.1 Overriding mandatory provisions of the forum 672Ingmar GB Ltd v. Eaton LeonardTechnologies Inc. 673

3.5.2 Overriding mandatory provisions of foreign law 6764 Foreign illegality under English common law 676

4.1 Initial illegality 6764.1.1 Contracts to commit a crime 676

Foster v. Driscoll 677Regazzoni v. K. C. Sethia (1944) Ltd 678

4.1.2 Foreign public policy 683Lemenda Trading Co. Ltd v. African Middle East

Petroleum Co. Ltd 6834.1.3 Wider forms of illegality 685

Euro-Diam Ltd v. Bathurst 6854.1.4 Arbitration 687

Soleimany v. Soleimany 6884.2 Supervening illegality 690

Ralli Brothers v. Compania Naviera Sota yAznar 691

4.3 Conclusions 6935 Foreign illegality under US law 693

Triad Financial Establishment v. TumpaneCompany 694

Business Incentives Co. v. Sony Corporation ofAmerica 696

Further reading 698

26 The common-law countries: regulating business, protectingemployees and helping consumers 6991 Legal principles 6992 Estate agents 700

Freehold Land Investments Ltd v. Queensland EstatesPty Ltd 700

Dorothy K. Winston & Co. v. Town HeightsDevelopment Inc. 702

3 Lawyers 704Newcomb v. Daniels, Saltz, Mongeluzzi &

Barrett Ltd 7044 Employees 708

4.1 Exemption clauses 709

CONTENTS xxi






Sayers v. International Drilling Co. NV 709Brodin v. A/R Seljan 715

4.2 Agreements not to compete 718Nasco Inc. v. Gimbert 718Nordson Corporation v. Plasschaert 719Barnes Group Inc. v. C&C Products Inc. 722

5 Consumers 726English v. Donnelly 727

Further reading 729

27 Foreign currency 7311 Exchange controls 731

1.1 Exchange controls of the forum 731Boissevain v. Weil 732

1.2 Foreign exchange controls 7341.2.1 General principles 734

Kleinwort, Sons and Company v. UngarischeBaumwolle Industrie 734

1.2.2 The IMF Agreement 735Wilson, Smithett & Cope Ltd v. Terruzzi 736Sing Batra v. Ebrahim 739United City Merchants v. Royal Bank of Canada 740

1.3 Conclusions 7432 Claims in foreign currency 743

2.1 The ‘breach-date’ rule 743Competex v. LaBow 743Indag SA v. Irridelco Corporation 745

2.2 Judgment in foreign currency 746Miliangos v. George Frank (Textiles) Ltd 746Owners of the Eleftherotria v. Owners of the Despina

R Services Europe Atlantique Sud (SEAS)v. Stockholms Rederiaktiebolag Svea 751

Attorney General of Ghana v. Texaco OverseasTankships Ltd 757

2.3 Developments in New York 7603 Currency-exchange loss 760

Ozalid Group (Export) Ltd v. African ContinentalBank Ltd 761

Further reading 762

28 Property: tangible movables 7631 Introduction 7632 Stolen property 764

Winkworth v. Christie Manson andWoods Ltd 764

xxii CONTENTS






3 Tax claims 769Brokaw v. Seatrain UK Ltd 769

4 Nationalization: England and its colonies 771Luther Co. v. Sagor & Co. 771Anglo-Iranian Oil Co. Ltd v. Jaffrate

(The Rose Mary) 773Re Helbert Wagg & Co. Ltd 776

5 Nationalization: United States 777Banco Nacional de Cuba v. Sabbatino 777Nelson Bunker Hunt v. Coastal States Gas Producing

Company 7826 Conclusions 784

Oppenheimer v. Cattermole 784Further reading 786

29 Contractual rights and property interests – I 7871 Introduction 7872 Situs 7873 The distinction between contract and property 7884 Contractual debts and bonds 788

Re Helbert Wagg & Co. Ltd 788National Bank of Greece and Athens v. Metliss 794Adams v. National Bank of Greece 798

5 Bank accounts 801Libyan Arab Foreign Bank v. Bankers Trust Co. 801

6 Letters of credit 807Power Curber International Ltd v. National Bank

of Kuwait 8087 Shares 810

7.1 The common law 811Braun v. Custodian 811Macmillan Inc. v. Bishopsgate Investment Trust

plc (No. 3) 813Williams & Humbert Ltd v. W&H Trade Marks

(Jersey) Ltd 8167.2 The Rome I Regulation 819

Further reading 820

30 Contractual rights and property interests – II 8211 Voluntary assignment: the Rome I Regulation 821

1.1 The nature of an assignment 8211.1.1 Essential requirements 8211.1.2 Relationships 8221.1.3 Assignment distinguished from novation 822

1.2 Article 14 of the Rome I Regulation 822

CONTENTS xxiii






1.2.1 Paragraph 1 8231.2.2 Paragraph 2 8241.2.3 The proposed paragraph 3 824

1.3 The problem of characterization (classification) 8251.3.1 Attachment of assets 825

Raiffeisen Zentralbank Österreich v. Five StarTrading 826

1.3.2 Insolvency of the assignor 8331.3.3 Competing assignments 834

1.4 What law should apply under paragraph 3? 8361.4.1 The law of the obligation 8361.4.2 The habitual residence of the assignor 8361.4.3 A possible compromise 837

2 Third-party debt orders and garnishment 8372.1 English law 837

Deutsche Schachtbau-und Tiefbohrgesellschaft mbH v.Ras Al-Khaimah National Oil Co 838

Société Eram Shipping Co. Ltd v. CompagnieInternationale de Navigation 844

2.2 EU law 8472.3 Conclusions 847

Further reading 847

31 Contractual rights and property interests – III 8491 Original approach 849

Republic of Iraq v. First National City Bank 849United Bank Ltd v. Cosmic International Inc. 851Vishipco Line v. Chase Manhattan Bank 854

2 New approaches 855Tabacalera Severiano Jorge SA v.Standard Cigar 856Allied Bank International v. Banco Credito Agricola

de Cartago 857Callejo v. Bancomer 860Braka v. Bancomer 863

3 Situs under US law 8644 The Hickenlooper Amendment 864

French v. Banco Nacional de Cuba 8645 Conclusions 869

5.1 England and the US compared 8695.2 Should English law be changed? 870

Further reading 872

Bibliography 873Index 875

xxiv CONTENTS






Table of panels

3.1 Recognition and enforcement of judgments within the Union:EEC Treaty, Article 220 page 21

3.2 Defendants domiciled in third countries: Brussels 2012(Regulation 1215/2012), Article 6 23

3.3 Conventions with third countries: Brussels 2012(Regulation 1215/2012), Article 72 24

3.4 General jurisdiction: Brussels 2012 (Regulation 1215/2012),Article 4 24

3.5 Law applicable to determine the domicile of an individual:Brussels 2012 (Regulation 1215/2012), Article 62 25

3.6 UK rules of domicile for individuals: Civil Jurisdiction andJudgments Order 2001, Article 9 (Brussels 2000 version) 26

3.7 Domicile of companies: Brussels 2012 (Regulation 1215/2012),Article 63 27

3.8 Which instrument applies? Lugano Convention 2007, Article 64 303.9 Subject-matter scope: Brussels 2012 (Regulation 1215/2012),

Article 1 314.1 Persons domiciled in another Member State: Brussels 2012

(Regulation 1215/2012), Article 5 444.2 Matters relating to a contract: Brussels 2012 (Regulation 1215/2012),

Article 7(1) 524.3 Matters relating to a tort: Brussels 2012 (Regulation 1215/2012),

Article 7(2) 654.4 Branch, agency or other establishment: Brussels 2012

(Regulation 1215/2012), Article 7(5) 744.5 Multiple parties: Brussels 2012 (Regulation 1215/2012), Article 8 814.6 Counterclaims: Brussels 2012 (Regulation 1215/2012),

Article 8(3) 834.7 Individual contracts of employment: Brussels 2012 (Regulation

1215/2012), Articles 20–23 854.8 Exclusive jurisdiction: Brussels 2012 (Regulation 1215/2012),

Article 24 874.9 Submission: Brussels 2012 (Regulation 1215/2012), Article 26 1004.10 Examination as to jurisdiction: Brussels 2012 (Regulation

1215/2012), Article 27 100

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4.11 Examination as to jurisdiction: service: Brussels 2012(Regulation 1215/2012), Article 28 101

5.1 Service of documents on an overseas company: CompaniesAct 2006 111

5.2 Contracts: Civil Procedure Rules, Rule 6.36 and PracticeDirection 6B, paragraph 3.1(6), (7) and (8) 120

5.3 Tort: Civil Procedure Rules, Rule 6.36 and Practice Direction 6B,paragraph 3.1(9) 122

5.4 Multiple parties: Civil Procedure Rules, Rule 6.36 and PracticeDirection 6B, paragraph 3.1(3) 124

5.5 Foreign land: Civil Jurisdiction and Judgments Act 1982,section 30 126

6.1 Rules of Civil Procedure (Ontario) (RRO 1990), Regulation 194 1296.2 Uniform Court Jurisdiction and Proceedings Transfer Act

(Uniform Law Conference of Canada), sections 3 and 10 1427.1 Due Process Clause of the Fourteenth Amendment

(US Constitution) (1865) 1537.2 Due Process Clause of the Fifth Amendment

(US Constitution) (1791) 1677.3 Federal Rules of Civil Procedure, Rule 4(k)(2) 1678.1 Choice-of-court agreements: Brussels 2012 (Regulation 1215/2012),

Article 25 1818.2 Protection of weak parties: Brussels 2012 (Regulation 1215/2012),

Articles 15, 19 and 23 19410.1 Lis pendens – related actions: Brussels 2012 (Regulation 1215/2012),

Articles 29–32 26110.2 Lis pendens: proceedings in a non-EU State: Brussels 2012

(Regulation 1215/2012), Articles 33 and 34 26610.3 Enhancing the effectiveness of choice-of-court agreements:

Brussels 2012 (Regulation 1215/2012), Recital 22 28410.4 Arbitration: Brussels 2012 (Regulation 1215/2012), Recital (12) 28612.1 The Defamation Act 2013, Section 9 34414.1 Recognition and enforcement: Brussels 2012, Articles 36–41 35414.2 Refusal of recognition: Brussels 2012, Article 45 35514.3 Conventions with third countries: Brussels 2012, Article 72 35714.4 Civil claim in criminal proceedings: Brussels 2012, Article 7(3) 35914.5 The right to defend oneself: Brussels 2012, Article 64 36015.1 Submission: Civil Jurisdiction and Judgments Act 1982, section 33 40715.2 Choice-of-court and arbitration agreements: Civil Jurisdiction and

Judgments Act 1982, section 32 40815.3 State (sovereign) immunity: Civil Jurisdiction and Judgments

Act 1982, section 31 40816.1 Foreign judgments as a bar to new proceedings: Civil Jurisdiction

and Judgments Act 1982, section 34 432

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18.1 Foreign-court jurisdiction: Uniform Foreign-Country MoneyJudgments Recognition Act, section 5 447

19.1 Power to grant injunctions: Senior Courts Act 1981, section 37 45519.2 Foreign judgments: Civil Jurisdiction and Judgments Act 1982,

section 25 46319.3 Provisional, including protective, measures: Brussels 2012

(Regulation 1215/2012), Article 35 48319.4 Provisional measures in enforcement proceedings: Brussels 2012,

Article 40 49320.1 Disclosure and inspection of documents: Civil Procedure Rules,

Rule 31.8 50121.1 Protection of Trading Interests Act 1980, section 4 54321.2 Assistance to foreign and international tribunals:

28 USC § 1782(a) 54523.1 Torts: the general rule: Rome II Regulation, Article 4 59223.2 Rules of safety and conduct: Rome II Regulation, Article 17 59323.3 States with more than one legal system: Rome II Regulation,

Article 25 59323.4 Habitual residence: Rome II Regulation, Article 23 59523.5 Environmental damage: Rome II Regulation, Article 7 61023.6 Product liability: Rome II Regulation, Article 5 61623.7 Infringement of intellectual property rights: Rome II Regulation,

Article 8 62023.8 Freedom of choice: Rome II Regulation, Article 14 62123.9 Subject-matter scope of the Rome II Regulation: Rome II

Regulation, Article 1 62224.1 Subject-matter scope of the Rome I Regulation: Rome I

Regulation, Article 1 63024.2 States with more than one legal system: Rome I Regulation,

Article 22 63124.3 Express and implied choice of law: Rome I Regulation, Article 3 63224.4 Applicable law in the absence of choice: Rome I Regulation,

Article 4 64124.5 Meaning of ‘habitual residence’: Rome I Regulation, Article 19 64324.6 Carriage of goods: Rome I Regulation, Preamble (Recital 22)

and Article 5(1) 65624.7 Carriage of passengers: Rome I Regulation, Article 5 65624.8 Consent and material validity: Rome I Regulation, Article 10 65724.9 Incapacity: Rome I Regulation, Article 13 65824.10 Other provisions: Rome I Regulation, Articles 11 and 12 65925.1 Overriding mandatory provisions: Rome I Regulation, Article 9(1) 66125.2 Non-derogable provisions: Rome I Regulation, Article 3 66225.3 Consumer contracts: Rome I Regulation, Article 6 66325.4 Consumer contracts: Rome I Regulation, Recitals 23–32 665

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25.5 Individual employment contracts: Rome I Regulation, Article 8 66625.6 Overriding mandatory provisions: Rome I Regulation, Article 9 67225.7 Overriding mandatory provisions of foreign law: Rome

Convention, Article 7 67225.8 Overriding mandatory provisions of the forum: Rome

Convention, Article 7 67325.9 Restatement of the Law Second Conflict of Laws, § 187(2) 69327.1 Computation of judgments and accounts: New York

Judiciary Law, § 27 76028.1 Hickenlooper Amendment: Foreign Assistance Act 1964,

22 USC § 2370(e)(2) 78229.1 Material scope (company shares): Rome I Regulation, Article 1 82030.1 Voluntary assignment and contractual subrogation: Rome I

Regulation, Article 14 823

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Figures

2.1 Jurisdiction page 1322.1 Traditional choice-of-law methodology 56130.1 Relationships 82230.2 Competing assignments 835

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