Agrégateur de flux

Jamieson v Wurttemburgische Versicherung AG & Anor [2021] EWHC 178 (QB) has been in my draft folder for a while – Master Davison refused an application for a stay on the basis of A29 Brussels I’a’s lis alibi pendens rule, holding that the issue of which court was being seized first, was properly sub judice in the German courts, as is the issue whether litigation subject to the protected categories, should rule out a stay in cases where the weaker party is being disadvantaged.

James Beeton has the background to the case here. Claimant was injured in a road traffic accident in Munich. He was working as a commodities broker for the second defendant. He was attending the Oktoberfest with clients, whom he was entertaining. He was walking from the beer hall to his hotel. He crossed a busy highway and was struck by a taxi, sustaining very severe injuries. The precise circumstances of the collision are in dispute. The taxi was insured by the first defendant, against whom the claimant has a direct right of action.

I tell students and pupils alike that too strong a hint of judicial action in pre-litigation action may trigger a torpedo suit in a court not preferred by client. That is exactly what happened in this case. In pre-action correspondence the insurers for the taxi were asked to confirm that they would not issue proceedings in another jurisdiction – to which they never replied other than by issuing proceedings in Germany for a negative declaration, i.e. a declaration that they were not liable for the accident. Those proceedings had been issued on 18 July 2017. Claimants then issued protectively in England on 10 May 2018. The to and fro in the German proceedings revealed that the correct address for the English claimant was not properly given to the German courts until after the English courts had been seized. 

Hence two substantive issues are before the German courts: when were they properly seized (a discussion in which the English courts could formally interfere using A29(2) BIa); and if they were seized first, is A29 subordinate to the protected categories’ regime: for if the German torpedo goes ahead, claimant in the English proceedings will be bereft of his right to sue in England.

The suggestion for the second issue is that either in Brussels Ia, a rule needs to be found to this effect (I do not think it is there); or in an abuse of EU law (per ia Lord Briggs in Vedanta) argument (CJEU authority on and enthusiasm for same is lukewarm at best).  Despite Master Davison clear disapproval of the insurer’s actions at what seems to be an ethical level, he rules out a stay on the basis of comity and of course CJEU C-159/02 Turner v Grovit: the English High Court must not remove a claim from the jurisdiction of the German courts on the basis of abuse of EU law before those courts.

A most interesting case on which we may yet see referral to the CJEU – by the German courts perhaps.

Geert.

EU Private International Law, 3rd ed 2021, Heading 2.2.9.4, 2.2.15.1.

Lis alibi pendens, Articles 29 &32 Brussels Ia.
Application for stay refused. https://t.co/rIyTL62nPa

— Geert Van Calster (@GAVClaw) February 5, 2021

More information will follow soon. Please click here for a link to the registration page. The Facebook page of the events is available here.

The author of this post is Olivera Boskovic, who is Professor of Private Law at the Université de Paris.

On 12 February 2021, the Supreme Court of the United Kingdom delivered its judgement in Okpabi and others v. Royal Dutch shell and another. The action was brought by two Nigerian communities against Royal Dutch Shell, the UK-domiciled parent company of a multi-national group of companies and its Nigerian subsidiary. The appellants claimed that numerous oil spills in the vicinity of their communities had caused environmental harm leading to damage to health and property.

The first question was a jurisdictional one. Could the UK courts hear the case? This depended, among other questions, on “whether the claimants had an arguable case that a UK domiciled parent company owed them a common law duty of care so as to properly found jurisdiction against a foreign subsidiary company as a necessary and proper party to the proceedings”.

As underlined by Eva-Maria Kieninger, contrary to the decision in Vedanta, the Supreme Court did not clearly distinguish in Okpabi, as it should have, jurisdiction over the parent company and jurisdiction over the subsidiary. Having said that, at first instance and on appeal, it was held that “there was no arguable case that RDS owed the appellants a common law duty of care to protect them against foreseeable harm caused by the operations of SPDC”. On the contrary, the Supreme Court answered this question affirmatively and allowed the appeal.

A very important part of the jurisdictional question is thus solved in favour of the appellants. However, the final result is uncertain since the High court after remitting may still have to address some jurisdictional issues, at least concerning the subsidiary, such as forum non conveniens and/or access to justice in Nigeria which were not addressed in these proceedings.

The decision is in line with the landmark case Vedanta Resources PLC and another (Appellants) v Lungowe and others (Respondents), decided in 2019.

Concerning the duty of care, at the jurisdictional stage, the key points to remember are the following :

• When determining the arguability of the claim at the interlocutory stage, the court should focus on the particulars of the claim, rather than the weight of the evidential case. Factual assertions on which the claim is based should be accepted by the court unless, exceptionally, they are demonstrably untrue and unsupportable and this will be the case only in very exceptional cases. Mini-trials should be avoided. On the documentary evidence it is particularly important to note that the preferred test is “are there reasonable grounds for believing that disclosure may materially add to or alter the evidence relevant to whether the claim has a real prospect of success » (§128)? (For the purpose of comparison, on the difficulties of access to documents which could establish the exact way of functioning of the group of companies in the French context see an interesting example Paris Court of Appeal, 17 September 2020, no. 19/20669)
• The existence of duty of care depends on the circumstances. There is no limiting principle such as the one the Court of Appeal relied on when deciding that the issuance of group wide policies can never give rise to a duty of care. Secondly the Court of Appeal focused inappropriately on the issue of control which in fact should only be the starting point. A duty of care may arise regardless of the issue of control as in the situation where the parent holds itself out as exercising that degree of supervision and control over its subsidiaries even if it does not in fact do so.
• As already stated in Vedanta, “the liability of parent companies in relation to the activities of their subsidiaries is, not of itself a distinct category of liability in common law negligence”. The general principles which determine such liability are “not novel” and hence do not require “an added level of rigorous analysis”

After Vedanta and Okpabi one can now say that English courts seem more prepared to hear cases brought at the same time against UK based companies and their over-seas subsidiaries. This is a very important step. Under the Brussels regime, no longer applicable in the UK, jurisdiction for an action brought against a UK domiciled company was easy to establish, but it was associated with the extreme difficulty of establishing liability (However, it is worth noting that the future is unclear; will the UK join the Lugano Convention or will it go back to common law rules on jurisdiction ?).

On the other hand, jurisdiction for an action brought against over-seas subsidiaries was very uncertain. Indeed, jurisdiction against foreign companies for damage sustained in a foreign country by foreign claimants was considered as problematic not only in the UK but in many countries.

In France, before the 2017 Duty of vigilance Act was adopted the main rules for jurisdiction based on the domicile of the defendants, the place of the harmful event or the nationality of the claimant did not allow French courts to assert their jurisdiction in such cases. Two possible grounds for jurisdiction, co-defendants and the risk of denial of justice, did exist, but both were very uncertain.

In 2017 the French Parliament adopted the Duty of Vigilance Act requiring certain large companies to identify risks that their business creates for human rights and the environment and prevent violations. Under certain conditions these companies can be liable for damage caused by their subsidiaries or companies in their supply chain. This means that, since 2017, mother companies can be considered as proper defendants. Hence, within the limited scope of the Duty of vigilance Act the co-defendants rule should be able to found the jurisdiction of the French courts over foreign subsidiaries. Outside of its scope, the situation remains uncertain.

At EU level, a recent proposal was made to introduce a forum necessitatis in the Brussels I recast which would, under certain conditions, give jurisdiction to Member States’ courts  to decide on business-related civil claims on human rights violations brought against undertakings located in third-countries, but within the supply chain of an EU undertaking. It was also proposed to amend the Rome II Regulation (see the posts of Geert Van Calster, Giesela Rühl, Jan von Hein, Chris Thomale, Eduardo Álvarez-Armas). Both of these proposals were rejected last week.

Accepting jurisdiction is only the beginning.  The next step, which will be more difficult, is establishing liability. The liability of the subsidiary will, no doubt, be governed by the law of the place of the damage, which is also the law of the place of the causal event and the law of the place of the domicile of the subsidiary.

However, concerning the liability of the mother company one can hesitate. In Okpabi, the court considered that liability was governed by Nigerian law, which was identical to English law.

For environmental torts, Article 7 of the Rome II Regulation gives the claimant a choice between the law of the place of the damage and the law of the place of the causal event. Although this rule seems favourable to the claimants, the definition of the terms “causal event” gives rise to many questions. Is the causal event necessarily the material act that triggered the environmental damage or could one consider that decisions and environmental policy can constitute the causal event?

For other types of damage, the general rule in Article 4, and therefore the law of the place of the damage, applies. This means that in situations where one cannot consider that the local law is identical to the law of the domicile of the mother company, the choice of law question might be problematic.

In the light of these considerations, it appears that the discussion about the modification of the Rome II regulation proposed by the Committee on legal affairs of the European Parliament and rejected last week was a very important one (Although, the suggested rule was far from perfect, the idea of introducing such a rule was, to say the least, worth considering. On this modification see among others O. Boskovic, ‘La loi applicable aux «actions pour violations des droits de l’homme en matière commerciale»’, Recueil Dalloz 2021, p. 252).

Even though courts are starting to address these questions with existing tools (It is worth noting that the first appeals decision resulting in a victory on the merits for the victims in a foreign direct liability case was rendered on 29 January 2021 by the Hague Court of Appeal in the case of Four Nigerian Farmers and Milieudefensie v. Shell), a well drafted European choice of law rule would be very welcome. The same could be said of a European approach of mass tort litigation, the risk of which is raised by this decision. But this is yet another story.

Bien qu’une question prioritaire de constitutionnalité (QPC) ait été renvoyée au Conseil constitutionnel sur la notification du droit de se taire au cours des débats sur la détention provisoire, la chambre criminelle a donné son propre point de vue dans l’arrêt du 24 février 2021.

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Based on the priorities defined for the Portuguese Presidency of the Council of the European Union in the area of Justice, the Ministry of Justice of Portugal will host on 30 March 2021 a conference under the title Protecting Vulnerable Adults Across Europe – The Way Forward.

The relevance of private international law – and, specifically, the Hague Convention on the International Protection of adults – to the realisation of the fundamental rights of adults with disabilities features among the key topics of the conference.

Speakers include Salla Saastamoinen (Directorate-General for Justice and Consumers, European Commission), Zampia Vernadaki (Secretariat of the JURI Committee, European Parliament), Philippe Lortie (First Secretary, Hague Conference on Private International Law), and Jean-François de Montgolfier (Ministry of Justice, France).

Older persons, people with physical, intellectual, sensory or psychosocial impairments, and victims of hate crime or gender-based violence are among those adults who may face particular challenges in exercising their rights, defending their interests and accessing justice in civil and criminal proceedings.

Cross-border situations may further exacerbate these issues by creating additional obstacles with respect to language, representation and differences in national legal systems. This can particularly affect ‘vulnerable’ adults wishing to exercise their right of freedom of movement within the Union. In addition, the COVID-19 pandemic has increased the difficulties that this population faces.

These challenges affect a significant proportion of the European Union’s population. European societies are ageing and Eurostat expects that, by 2050, one-fifth people in the EU will have some form of impairment. This is likely to result in an increase in the numbers of people who may need support to protect their interests and participate on an equal basis with others in civil and criminal proceedings.

Since 2008, initiatives in the area of civil law have promoted the ratification of the 2000 Convention on the International Protection of Adults and discussed how to improve its application. Yet the overall situation in the EU remains far from satisfactory.

In the area of criminal law, the new EU Strategy on Victims’ Rights 2020-25 recognises the need to explore how to enhance the protection of adults in vulnerable situations.

In addition, since 2018, all EU Member States – and the EU itself – are States Parties to the UN Convention on the Rights of Persons with Disabilities.

As the protection of ‘vulnerable’ adults is one of the priorities of the Portuguese Presidency of the Council of the EU in the area of Justice, the Portuguese Ministry of Justice, the European Commission and the European Union Agency for Fundamental Rights (FRA) are organising a virtual High-Level Conference on 30 March 2021.

This event provides an opportunity to reflect on the current situation and look ahead to what steps are necessary to ensure that all members of our diverse societies can enjoy their fundamental rights, including equal access to justice, in practice.

Attendance is free. The practical information to attend may be found here. See here for general information on the event, including the detailed programme.

EFFORTS (Towards more EFfective enFORcemenT of claimS in civil and commercial matters within the EU) is an EU-funded Project conducted by the University of Milan (coord.), the Max Planck Institute Luxembourg for Procedural Law, the University of Heidelberg, the Free University of Brussels, the University of Zagreb, and the University of Vilnius.

The EFFORTS Project tackles, notably, the Brussels Ibis Regulation and the Regulations on the European Enforcement Order, the European Small Claims Procedure, the European Payment Order, and the European Account Preservation Order. By investigating the implementation of these Regulations in the national procedural law of, respectively, Belgium, Croatia, France, Germany, Italy, Lithuania, and Luxembourg, the Project aims at enhancing the enforcement of claims through more efficient procedures, case management, and cooperation in cross-border disputes.

The first edition of the EFFORTS Newsletter was just issued and is available here.

Project JUST-JCOO-AG-2019-881802

With financial support from the Civil Justice Programme of the European Union

Gustavo Cerqueira and Nicolas Nord have edited a collection of essays, mostly in French, on the ascertainment of foreign law, titled La connaissance du droit étranger: à la recherche d’instruments de coopération adaptés. The book was published by the Société de législation comparée in late 2020.

The editors have kindly provided the following presentation in English.

Foreign law occupies an increasing place in practice not only for the judge, but also for other legal professions: notary, civil registrar, lawyer in particular. The most apparent causes for this increase are the proliferation of European Union regulations in private international law and the development of jurisdictions or specialized chambers in international litigation and the application of foreign law. A real competition has appeared in this regard for several years. Beyond the only aspect of litigation conventionally considered, the taking into account and the application of foreign law becomes essential for other perspectives: obligation of advice, non-contentious matters, drafting of acts, asset optimization, planning of international corporate transactions, among others.
The stakes are therefore crucial and the search for suitable cooperation instruments for a good knowledge of foreign law is essential.
This book contributes to the reflections on this subject. It thus includes an important inventory which makes it possible to update the diversity of regimes in the legal orders studied and the heterogeneity of professional practices. Concrete solutions are also proposed. They are the result of cross-discussions and round tables during the conference held at the French Cour de cassation on 28 November 2019.
While the apparent objective may be to achieve the adoption of a general instrument with the widest possible geographical scope, it quickly appeared vain to try to favor such an approach at present. On the one hand, each profession has different needs, on the other hand, the level of development of the different systems compared is not the same. While some are lagging behind and are struggling to adopt satisfactory rules in this area, others are at the forefront and therefore are really in demand for a cooperation instrument whose usefulness does not seem obvious to them. The various contributions and debates made it possible to consider paths for reflection as numerous as diverse, ranging from the revitalization of old instruments to the creation of specialized institutions at internal, international or European level, including the establishment of specific mechanisms or the use of artificial intelligence. Such an abundance shows the crucial nature of the issue and the vitality of the reflections carried out on it, but also the relevance of having debated it and the need to continue to do so.
In this sense, the next stage of this debate could be that of the opportunity of adopting a European regulation on the matter.

The book comes with a preface by Hélène Gaudemet-Tallon. The authors include, in addition to the editors themselves: Cyril Nourissat, François Ancel, Cyril Roth, Dominique Foussard, Olivier Berg, Nicolas Nord, Jochen Bauerreis, Guillermo Palao Moreno, Lukas Heckendorn Urscheler, Gustavo Ferraz De Campos Monaco, Patrick Kinsch, Maria Rosa Loula, Jean-Noël Acquaviva, Jean-Louis Van Boxstael, Marie Vautravers, Rodrigo Rodriguez, Wolfgang Rosch, and Françoise Monéger.

For more information, including the table of contents, see here.

Au nom de la liberté d’aider autrui dans un but humanitaire, le juge du référé liberté s du TA de Nice enjoint au préfet des Alpes-Maritimes de laisser les associations accéder ponctuellement aux locaux attenants à ceux de la police des frontières de Menton afin de porter assistance aux étrangers présents. 

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La Cour condamne l’Espagne pour non-transposition de la directive (UE) 2016/680 dite « Police-Justice ». Elle rejette tout argument tiré de la situation institutionnelle troublée de l’Espagne pour privilégier une lourde sanction dissuadant les États membres de ne pas exécuter les mesures garantissant un espace de liberté, de sécurité et de justice au sein de l’Union.

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