In a letter to the Gazette, the president of the Paris Commercial Court claims Brexiters ‘underplay or seek to ignore’ the fact that from next March, judgments by the London Commercial Court will no longer enjoy automatic enforceability in EU member states.
Is it inevitable that where EU parties may have chosen English law and English jurisdiction for disputes, they will be less likely to do so after Brexit? Only time will tell.
However, as noted in City A.M yesterday, this issue extends further to other international commercial parties and jurisdictions - will such parties be more likely to choose alternative jurisdictions post Brexit? And will legal advisers advice be to do so? Currently, many big commercial parties often elect to have Arbitration clauses over litigation, so they may still choose/be advised to choose English law to govern agreements, but go elsewhere to resolve disputes to save costs and overcome potential enforceability obstacles.
London has developed into a pre-eminent international dispute resolution centre, with businesses and billionaires alike settling their arguments in the capital’s courtrooms. Research by TheCityUK showed that in 2017 17,193 cases were issued in the business, property and commercial court centre in London, with 76 per cent of the cases in the commercial court involving at least one international party in the year to July. However, courts around the world in centres such as Dubai, Dublin and Paris are competing to get a slice of that work, with Brexit seen as an opportunity to supplant London as the world’s dispute resolution centre.