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Choice of law in commercial contracts and regulatory competition: new steps to be made by the EU?
The recently published study titled ‘European Commercial Contract Law’, authored by Andrea Bertolini, addresses the theme of regulatory competition. It offers new policy recommendations to improve EU legal systems’ chances of being chosen as the law governing commercial contracts.
The Study’s main question
The European Parliament’s Committee on Legal Affairs has published a new study authored by Andrea Bertolini, titled ‘European Commercial Contract Law’ (the ‘Study’). The Study formulates the main question as follows: ‘why the law chosen in commercial contracts is largely non-European and non-member state law’. The expression ‘non-European and non-member state’ law is specified as denoting the legal systems of England and Wales, the United States, and Singapore, and more generally, common law legal systems. The Study states:
It is easily observed how most often international contracts are governed by non-European law. The reasons why this occurs are up to debate and could be quite varied both in nature and relevance. Indeed, a recent study by Singapore Academy of Law (SAL) found that 43 per cent of commercial practitioners and in-house counsel preferred English law as the governing law of the contracts. Read more
Financial Hardship and Forum Selection Clauses
The U.S. Supreme Court has long held that a forum selection clause should not be enforced when “trial in the contractual forum will be so gravely difficult and inconvenient” that the plaintiff “will for all practical purposes be deprived of his day in court.” The financial status of the plaintiff is obviously a factor that should be considered as part of this inquiry. Large corporations can usually afford to litigate cases in distant courts. Individual plaintiffs frequently lack the resources to do so. Nevertheless, the lower federal courts in the United States have repeatedly held that financial hardship on the part of the plaintiff is not enough to make an otherwise valid forum selection clause unenforceable. Read more
Revised Canadian Statute on Judgment Enforcement
Two years ago, the Uniform Law Conference of Canada (ULCC) released a revised version of the Court Jurisdiction and Proceedings Transfer Act (CJPTA), model legislation putting the taking of jurisdiction and staying of proceedings on a statutory footing. The statute is available here.
The ULCC has now released a revised version of another model statute, the Enforcement of Canadian Judgments Act (ECJA). The original version of this statute was prepared in 1998 and had been amended four times. It has now been consolidated and substantially revised. It is available here and background information is available here and here.
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University of East Anglia Law Podcast Series on (Private and Public) International Law: Series 3 out now
All episodes of Series 3 of the University of East Anglia Law School Podcast are now out. Hosted by Rishi Gulati, they cover the following topics:
- The Future of International Investment Law (Muthucumarasamy Sornarajah)
- Double Standards in International Law (Patryk Labuda)
- The launch of the Elgar Companion to UNIDROIT (Edward Elgar, 2024)
- The Rise of International Commercial Courts (Giesela Rühl)
- The exercise of self-defence in outer space (Chris O’Meara)
- Greenland, Self-Determination, and the Geopolitical Contest (Maria Ackrén).
All episodes are available at SoundCloud, Apple Podcasts, and Spotify
Where do Children Reside? Where they are “at Home”
The Supreme Court of Canada has released its reasons for dismissing the appeal (which it did orally on December 9, 2024) in Dunmore v Mehralian, 2025 SCC 20. The narrow issue was the meaning of “habitual residence” for a child in the statutory context of the Children’s Law Reform Act (Ontario). The SCC had earlier explained that a hybrid approach to the meaning of habitual residence is to be used under the Hague Convention: Office of the Children’s Lawyer v Balev, 2018 SCC 16. In the convention, there is no definition of habitual residence. In contrast, the CLRA does provide elements of a definition of habitual residence (in s 22) though it leaves “resides” undefined. This generated the issue: under the statute, does the same hybrid approach apply or is the definition different because of the statute?
AMEDIP’s upcoming webinar: WIPO Expedited Arbitration on 26 June 2025 (in Spanish)
The Mexican Academy of Private International and Comparative Law (AMEDIP) is holding a webinar on Thursday 26 June 2025 at 14:30 (Mexico City time – CST), 22:30 (CEST time). The topic of the webinar is WIPO expedited arbitration: ADR and ODR in the era of technology disputes, videogames and e-sports and will be presented by Kiyoshi Tsuru and Óscar Suárez (WIPO) (in Spanish).