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Bahraini High Court on Choice of Court and Choice of Law Agreements

I. Introduction

It is widely recognized that choice of court and choice of law agreements are powerful tools for structuring and planning international dispute resolution. These agreements play an important role in “increasing legal certainty for the parties in cross-border transactions and reducing incentives for (the harmful version of) forum shopping.” (Alex Mills, Party Autonomy in Private International Law (CUP, 2018) p. 75). However, the realization of these objectives depends on the enforcement of the parties’ choice. Unfortunately, general practice in the MENA (North Africa and the Middle East) region shows that, with a few exceptions, the status quo is far from satisfactory. Choice-of-court agreements conferring jurisdiction on foreign courts are often disregarded or declared null and void. Similarly, the foreign law chosen as the governing law of a contract is often not applied because of the procedural status of foreign law as a matter of fact, the content of which must be ascertained by the party invoking its application. The recent judgment of the High Court of Bahrain (a first instance court in the Bahraini judicial system) in the Case No. 2/13276/2023/02 of 17 January 2024 is nothing but another example of this entrenched practice that can be observed in the vast majority of countries in the region.

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U.S. Supreme Court Decides Great Lakes

On February 21, 2024, the U.S. Supreme Court handed down its decision in Great Lakes Insurance SE v. Raiders Retreat Realty Company, LLC.

The question presented was whether, under federal admiralty law, a choice-of-law clause in a maritime contract can be rendered unenforceable if enforcement is contrary to the “strong public policy” of the U.S. state whose law is displaced. In a unanimous opinion authored by Justice Kavanaugh, the Court concluded that the answer to this question was no. It held that choice-of-law provisions in maritime contracts are presumptively enforceable as a matter of federal maritime law. It further held that while there are narrow exceptions to this rule, state public policy is not one of them.

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Implied Jurisdiction Agreements in International Commercial Contracts

Authors: Abubakri Yekini (Lecturer in Conflict of Laws at the University of Manchester) and Chukwuma Okoli (Assistant Professor in Commercial Conflict of Laws at the University of Birmingham, Senior Research Associate at the University of Johannesburg).

A  Introduction

In an increasingly globalised economy, commercial transactions often involve business entities from different countries. These cross-border transactions present complex legal questions, such as the place where potential disputes will be adjudicated. To provide certainty, commercial parties often conclude ex ante agreements on the venue for dispute resolution by selecting the court(s) of a particular state. However, what happens if no such express agreement over venue is reached for resolving a contractual dispute? Could consent to the venue be implicitly inferred from the parties’ conduct or other factors?

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News

HCCH Monthly Update: June 2025

Conventions & Instruments

On 17 June 2025, the Republic of Korea deposited its instrument of ratification of the 1993 Adoption Convention. With the ratification of the Republic of Korea, the 1993 Adoption Convention now has 107 Contracting Parties. It will enter into force for the Republic of Korea on 1 October 2025. More information is available here.

On 30 June 2025, Denmark signed the 2007 Child Support Convention and deposited its instrument of approval of the Convention. With the approval of Denmark, 55 States and the European Union are bound by the 2007 Child Support Convention. It will enter into force for Denmark on 1 October 2025. More information is available here.

 

Meetings & Events

On 5 June 2025, the first meeting of the Working Group established to finalise the Good Practices document relevant to the 1965 Service, 1970 Evidence, and 1980 Access to Justice Conventions was held online, hosted by the Permanent Bureau. More information is available here.

On 13 June 2025, the Working Party on Cross-Border Family Mediation in the Context of the Malta Process met online. More information is available here.

From 16 to 18 June 2025, the Experts’ Group on Digital Tokens met for the first time. More information is available here.

From 25 to 27June 2025, HCCH Asia Pacific Week 2025 was held in Seoul, co-hosted by the Republic of Korea and the HCCH. The conference brought together over 400 participants from across Asia and the Pacific and beyond for wide-ranging discussions on the most recent developments relating to the HCCH’s key Conventions and instruments, ongoing normative projects, and possible future work. More information is available here.

Other Developments

On 2 June 2025, the Host Seat Agreement between Morocco and the HCCH was signed in Rabat, establishing the Regional Office for Africa of the HCCH. More information is available here.

 

These monthly updates are published by the Permanent Bureau of the Hague Conference on Private International Law (HCCH), providing an overview of the latest developments. More information and materials are available on the HCCH website.

Call for Applications: Fellowships on ‘Complexity as an Issue of Law’

Professor Mareike Schmidt (Max Planck Institute for Social Anthropology) has kindly shared the attached  Call for Applications with us.

She is seeking to fellows working on ‘Complexity as an Issue of Law’ within the framework of her larger project on Change in and through Law: Digital Transformation and Climate Change

The Establishment of the International Organization for Mediation (IOMed)

On 30 May 2025, the signing of the Convention on the Establishment of the International Organization for Mediation (IOMed)  in Hong Kong marked an advancement in the field of international dispute resolution. Attended by representatives from over 85 countries and 20 international organisations – including the United Nations – the event introduced a treaty-based institutional framework dedicated specifically to mediation.

The IOMed Convention – with equally authentic texts in Arabic, Chinese, English, French, Russian, and Spanish – outlines a structured, treaty-based model of mediation whose scope is deliberately broad, encompassing disputes between States, between a State and nationals of other States, as well as disputes between private parties involved in international commercial relationships (Article 24).

A defining feature of the IOMed Convention is its treatment of the legal effect and enforceability of mediated outcomes. Articles 40 and 41 affirm both the binding nature of settlement agreements resulting from IOMed-facilitated mediation and their enforceability within the domestic legal systems of contracting States. This model of consensual yet normatively binding dispute resolution finds a compelling parallel in – and complements – the United Nations Convention on International Settlement Agreements Resulting from Mediation (the Singapore Convention). The Singapore Convention – which, as of 3 July 2025, counts 58 signatories and 18 parties – reinforces party autonomy while requiring the good faith implementation of mediated settlements. Particularly significant is Article 3 of the Convention, which obliges courts in contracting States to recognise international commercial settlement agreements and to enforce them in accordance with domestic procedures, provided the agreement satisfies the Convention’s requirements. While the Singapore Convention offers a uniform and efficient framework for the enforcement and “invocation” (see Art. 3(2)) of international settlement agreements resulting from mediation, the IOMed Convention contributes by establishing the institutional and procedural framework necessary for the conduct of mediation itself. Together, these instruments enhance both the normative foundation and the practical viability of cross-border mediation, thereby reinforcing its legitimacy in complex international commercial contexts.

Beyond its dispute resolution functions, IOMed also assumes a broader mandate to promote mediation (Art. 5). This includes fostering best practices (Art. 5(b)), organising conferences and training initiatives (Art. 5(c)), and implementing targeted capacity-building programmes (Art. 5(d)). A dedicated Mediation Fund (Art. 44), financed through voluntary contributions, is intended to promote equitable access to services, while a Capacity Building Committee (Art. 43) provides strategic oversight in this domain.

Ultimately, the IOMed Convention does not seek to alter the fundamental character of mediation. Rather, it aims to provide a coherent legal and institutional foundation at the international level. By anchoring mediation within a treaty-based framework, the IOMed Convention offers States and other actors a structured yet flexible environment in which to pursue dialogue-based resolution, with greater predictability, neutrality, and institutional support – while preserving the essential consensual nature that distinguishes mediation from adjudication. While its practical impact will depend on how States and other actors engage with its mechanisms over time, the Convention offers a new platform for exploring the potential of mediation in a variety of international contexts.

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