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Enforcing Jurisdiction Clauss in the EU

By Todd S. Fishman and Laura Martin

In a recent development that will likely be of interest to companies conducting business in Europe, the American Bar Association has recently urged the U.S. government to sign, ratify and implement the Hague Convention on Choice of Court Agreements (the 'Choice of Court Convention'). The Choice of Court Convention accomplishes many goals that have long been sought by the United States. Most importantly, it provides a mechanism for the recognition of certain judgments rendered by U.S. courts, namely judgments resolving a dispute arising out of a commercial agreement that was submitted pursuant to an exclusive choice of court agreement. (See American Bar Association, Recommendation adopted by the House of Delegates (Aug. 7-8, 2006), at www.abanet.org/intlaw/policy/investment/hcca0806.pdf.)

This Convention, in addition, brings another benefit on which there has been less of a focus, namely clarifying and strengthening the enforceability of choice of court agreements themselves. This benefit of the Choice of Court Convention has a particular impact upon enforceability within the European Union ('EU') of jurisdiction clauses selecting non-EU courts.

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