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It is an international agreement and other States may accede to it subject to the consent of the current parties. The agreement in this area clarifies the court that should be used by those seeking redress and gives all parties confidence that the judgment has a wider impact and not just in their own country. In the absence of such an agreement, the enforcement of foreign judgments is a matter for national law. This creates procedural hurdles for the parties and significantly increases the costs of litigation. In 2005, Denmark signed an international agreement with the European Community on the application of the provisions of the 2001 EU-Denmark Regulation. [6] The 2005 Agreement applies an amended form of the 2001 Regulation between Denmark and the rest of the EU. It also provides for a procedure for the implementation of amendments to the Danish Regulation. It applies the 2001 Regulation to Denmark and the other EU members from 1 July 2007[ [7]. If Denmark decides not to amend the Regulation or its successor, the Agreement shall terminate ex officio.

The Brussels Regulation generally allows jurisdiction clauses in contracts, which preserves the right of the parties to reach an agreement at the time of conclusion of the contract over which the court should have jurisdiction to hear disputes. After the entry into force of the 2012 Regulation, such a decision should in principle be respected, even if a court outside the States of the Brussels regime is chosen and is in conformity with the electoral convention of the Court of The Hague of 2005. There is also uncertainty as to whether the Hague Convention applies to treaties concluded before 1 January 2021. Indeed, the Hague Convention applies to the United Kingdom only to agreements concluded after the United Kingdom`s accession to the Convention. However, there are serious questions as to when the UK actually joined. The UK`s position is that the UK acceded to the Hague Convention in October 2015 because it is an EU Member State, a position currently reflected in national law (Civil Jurisdiction and Judgments Regulations 2015 (2005 Hague Convention on Choice of Court Agreements)). Conversely, the EU believes that the EU has joined as a single entity and that the UK will not fall under the Hague Regime until it becomes an independent signatory. In this context, the United Kingdom refiled its instrument of accession to the Hague Convention in September 2020 to ensure that the Hague Convention is in force on 1 January 2021. This creates a legal grey area for disputes arising from agreements signed before 1 January 2021 but after October 2015. In practice, due to the position of the Hague Convention in domestic law, English courts are likely to apply the Hague Convention to applicable conventions concluded from October 2015, although this is not certain.

European Commission President Ursula von der Leyen has pledged to “not hesitate” to use the “real teeth” of the agreement on the future relationship between Britain and the EU if Britain does not respect the agreement. Without the protection of the Lugano Convention, apart from the common law, the United Kingdom has only been able to rely on the 2005 Hague Convention on Jurisdiction Conventions. However, the Hague Convention only applies if there is an exclusive contractual jurisdiction clause (choice of court clause) and agreements containing asymmetric jurisdiction clauses – which are usually found in financial documents – do not fall within the scope of the Hague Convention. In particular, the Hague Convention does not apply to the following: the reason is obvious to everyone: the United Kingdom, the only acceptable common law jurisdiction for international agreements, has benefited very significantly from the EU regulation. Global companies could immediately enforce the decisions of English courts across the EU or choose London as the ideal location for their disputes. Until 1. In February 2020, all instruments will apply to the UK due to its EU membership. After this date, the instruments provided for in the Brexit Withdrawal Agreement will remain applicable there despite Brexit during a transition period. However, the Hague Convention appears to be a very problematic arrangement in some respects, as it only covers agreements of exclusive jurisdiction. Alternative dispute resolution systems such as arbitration are not permitted. Worse still, the arbitral award is neither recognized nor enforced, nor is interim protection facilitated, another crucial difference from the Lugano Convention. Imagine a scenario where you bought a Christmas gift for a friend and it is shipped by a company in Europe.

It arrives and is not what you ordered, and you find yourself in a dispute with the company that sold it to you. .