Flux des sites DIP

Thank you to everyone who responded to the call for paper. For those who were not yet ready, the deadline has been extended to May 17.

This year’s Forum Conveniens Annual Lecture at the University of Edinburgh will be held on Wednesday, 29 May 2019, 5.30 – 7 pm. The speaker is Prof. Marta Pertegás Sender, Maastricht University/ University of Antwerp , on the topic: “A New Judgments Convention in Times of Decaying Multilateralism?”.

The venue is Raeburn Room, Old College, South Bridge, Edinburgh, EH8 9YL.

The event is free but registration is required at https://forumconveniens2019.eventbrite.co.uk

The Mexican Academy of Private International and Comparative Law (AMEDIP) will be holding its XLII Seminar entitled “Towards an International Judicial Law ” at the Escuela Judicial del Estado de México in Toluca (Mexico) from 13 to 15 November 2019.

The seminar will focus on the draft National Code of Civil and Family Procedure and the draft National Law on Private International Law. The latter is an initiative of AMEDIP and has been drafted by professors Dr. Leonel Pereznieto Castro, Dr. Jorge Alberto Silva and Lic. Virginia Aguilar. These are two significant pieces of legislation and the seminar will analise how they would interact if they were passed by the Mexican Congress.

Potential speakers are invited to submit a paper in Spanish, English or Portuguese by 5 July 2019. Papers must comply with the criteria established by AMEDIP and will be evaluated accordingly. Selected speakers will be required to give their presentations preferably in Spanish as there will be no interpretation services but some exceptions may be made by the organisers upon request.

The final programme of the seminar will be made available at the end of October.

There is a registration fee of 300 Mexican pesos (approx. 14 Euros) for students and 800 Mexican pesos (approx. 37 Euros) for the general public. For speakers, the organisers will provide transportation from Mexico City and will cover hotel costs in Toluca.

For more detailed information (incl. convocation), see www.amedip.org.   Any queries, as well as registration requests, may be directed to asistencia@amedip.org.

Many thanks to the staff at Leuven’s law library for writing up six extremely useful Google ‘hacks’ for legal research, which I am pleased to post as a guest blog.

As law librarians of KU Leuven, we help students and professionals with their research on a daily basis. A big part of research is – of course – Google, but for some topics and broad searches, Google will come up with 2 million relevant results, making it hard to see the forest for the trees. These six hacks will help you Google more efficiently and find what you’re looking for quicker.

The most commonly known hack – but also one of the most useful ones to alleviate research frustration – is the ‘search within a site’ hack. By typing site:[the website you want to search in] before or after your keywords, you will only get results from within that particular site. This is especially useful for websites with limited or difficult native search tools.

As for our second hack, we would like to remind you of the wildcard: *. Using the asterisk to find missing words is useful if you would like to look up a quote but do not remember the exact wording. The wildcard has another great use: you can easily include words in two different spellings in your search results by searching, for example, organi*ations.

Another way to look up quotes, this time if you do have the exact wording and are trying to find out the source, is by putting your words between quotation marks. This hack will make sure you only get results that quote the exact phrase you’re searching.

Our fourth Google hack is one to help you filter out particular words. By using the – or hyphen symbol directly in front of said word, you will get results that do not include it. The hyphen symbol is essentially the same as the Boolean “NOT”.

Let’s say you know a specific file is available online, but your basic keyword search does not turn it up? To solve this problem, use our fifth hack: the filtype:[filetype you’re looking for, eg. doc] string in combination with your keywords.

Last but not least, our final hack will make it easier to search for different aspects of law from a specific country. By using the site:[country code] string, you only turn up results with URL’s that have the specific country code you are looking for as a domain extension. This works, for example, to help you search more efficiently for fields of law in the Netherlands vs Belgium.

These six hacks are easy tricks to level up your research skills and make sure you do not spend as much time combing through pages of Google results. There is definitely more where this came from! For specific questions, involving Google or not, the librarians at the KU Leuven Libraries Law are always at your service.

(These hacks were originally posted in the context of a “Google hacks week” on the KU Leuven Libraries Law’s different social media platforms: Twitter, Instagram and Facebook.)

The latest issue of ZEuP has just been released. It features the following articles:

Christoph Teichmann/Andrea Götz: Metamorphosen des Europäischen Gesellschaftsrechts: SUP, Company Law Package und SPE 2.0

So far, European initiatives aimed at facilitating the regulatory framework for limited-liability companies, such as the SPE-Regulation and the SUP-Directive, have failed. Their failure, however, has fostered a deeper understanding of the regulatory issues. The authors illustrate this achievement by analysing the long and winding road of the SUP proposal. It paved the way for the “Company Law Package” (regarding digitalization) and it may even contribute to an updated SPE version (“SPE 2.0”).

Christian Schmitt/Julia Bhatti/Christian Storck: Die neue europäische Prospekt-Verordnung – ein großer Wurf?

The new EU Prospectus Regulation attempts at solving the conflict between investor protection and the opening of the capital market. It is an attempt to provide investors with clearer prospectus information, while making access to the capital markets easier for companies. However, new requirements will also create additional liability risks. The overall picture shows that although the Regulation does not represent a revolution, it does offer potential for an evolution of the EU prospectus regime.

John Bowers/ACL Davies/Ruth Dukes/Mark Freedland/Birke Häcker: Sir Otto Kahn-Freund QC (1900–1979): A Retrospective

The present contribution contains the presentations delivered at a symposium held in honour of Sir Otto Kahn-Freund QC at the University of Oxford. Kahn-Freund was a German labour lawyer from a Jewish family who emigrated to the United Kingdom in 1933. He became a founding father of modern British labour law and held professorships at the London School of Economics and the University of Oxford. 2019 marks the fortieth anniversary of his death.

Rosa Miquel Sala: Das Sechste Buch des katalanischen Zivilgesetzbuches: neues Kaufrecht unter europäischem Einfluss

The Sixth Book of the Catalan Civil Code has been in force since the 1st of January 2018, a decision of the Spanish Constitutional Court is pending. The new Book contains an exhaustive regulation of sales contracts following the European models. A modernisation of the law of obligations in the Spanish Civil Code taking into consideration the existing projects and maybe also the new Catalan rules should follow. Equally urgent is an amendment of the rules on intra-state conflicts of laws.

As noted, I have come up for some air after a few hectic weeks – next case to report on is [2019] EWHC 879 (Comm) Ramona v Reliantco, held 12 April. (A similar case is pending with the CJEU against Reliantco as Case C-500/18).

Defendant (‘Reliantco’) is a company incorporated in Cyprus offering financial products and services through an online trading platform under the ‘UFX’ trade name. Claimant, Ms Ang, is an individual of substantial means who invested in Bitcoin futures, on a leveraged basis, through the UFX platform. She claims, essentially and primarily, that Reliantco wrongfully blocked and terminated her UFX account and should compensate her for the loss of her open Bitcoin positions, or at a minimum should refund her cash value invested. She also makes claims for relief in respect of what she says have been breaches of data protection obligations owed by Reliantco in connection with her UFX account.

The judgment does not concern the merits of Ms Ang’s claims but rather an application by Reliantco challenging jurisdiction. Reliantco contends that Ms Ang is bound by its standard terms and conditions, clause 27.1 of which provides that the courts of Cyprus are to have exclusive jurisdiction over “all disputes and controversies arising out of or in connection with” her customer agreement. Reliantco therefore relies on Article 25 Brussels Ia.

Ms Ang says that clause 27.1 is ineffective to require her to bring her claim in Cyprus, either because she is a consumer within Section 4 of Brussels (Recast) or because clause 27.1 was not incorporated into her UFX customer agreement with Reliantco in such a way as to satisfy the requirements of Article 25. Ms Ang says, in the alternative, that her data protection claims may be brought here notwithstanding Article 25 Brussels Ia even if Article 25 applies to her primary substantive claims.

All in all a nice set of jurisdictional issues and no surprise to have prof Jonathan Harris QC involved as counsel.

At all times material to her claim, Ms Ang was not employed or earning a living in any self-employed trade or profession (unless, which is contentious between the parties and considered below, her activity as a customer of Reliantco via the UFX platform is itself to be so classified). Ms Ang worked in money markets for two months as a trainee, observing US$/DM currency swaps. Other than that, she has no professional currency trading or money market experience (again, that is, unless her use of the UFX platform to invest in Bitcoin futures itself counts as such).

At 9, s little bit of Bitcoin drame enters the scene: Ms Ang’s husband, Craig Wright, is a computer scientist with cybersecurity and blockchain expertise who works as Chief Scientist for nChain Ltd, a blockchain technology company with a corporate vision “to transform how the world conducts all transactions – using the blockchain’s distributed, decentralised ledger that chronologically records transactions in an immutable way“. As a researcher, he publishes prolifically and has developed innovations for which patent protection has been sought. He is the same Craig Wright who has identified himself publicly as being ‘Satoshi Nakamoto’, the online pseudonym associated with the inventor (or a co-inventor) of Bitcoin. Baker J holds that he need not consider whether that claim is true, and on the evidence for this application I would not be in any position to do so.

Was Ms Ang a ‘consumer’? At 52 ff the arguments of Reliantco are summarised; at 55 ff those of Ms Ang.

CJEU precedent discussed by Baker J is C-89/91 Shearson; C-269/95 Benincasa; C-464/01 Gruber; C-498/16 Schrems; and the pending cases C‑208/18 Petruchová [I reviewed the AG’s Opinion (issued a day before the High Court’s judgment) yesterday] and C-500/18 Reliantco Investments and Reliantco Investments Limassol Sucursala Bucureşti.

Baker J concludes at 34 ‘the ECJ/CJEU has not decided whether contracts entered into by a wealthy private individual for the purpose of investing her wealth, or particular types of such contract, are not (or can never be) consumer contracts.’

Reference is then made to English precedent along the very lines of the precedent dismissed by Tanchev AG in Petruchová: including AMT Futures v Marzillier, and at 35 ff Standard Bank London Ltd v Apostolakis both through the English and the Greek courts – with differing results. At 44: ‘the disagreement between the English and Greek decisions in Apostolakis turns upon and is constituted by a difference of view as to whether investing private wealth for gain, if it takes the form of buying and selling foreign currency, is by nature a business activity so that an individual investing their wealth in that way cannot when doing so be a ‘consumer’ under Brussels (Recast). Longmore J thought there was no such proposition of law; the Greek court took the contrary view.’ German case-law is also discussed.

At 63 Baker J comes to the core of his reasoning: ‘In my judgment, the investment by a private individual of her personal surplus wealth (i.e. surplus to her immediate needs), in the hope of generating good returns (whether in the form of income on capital, capital growth, or a mix of the two), is not a business activity, generally speaking. It is a private consumption need, in the sense I believe intended by the ECJ in Benincasa, to invest such wealth with such an aim, i.e. that is an ‘end user’ purpose for a private individual and is not exclusively a business activity. That means, as was also Popplewell J’s conclusion in AMT v Marzillier, that it will be a fact-specific issue in any given case whether a particular individual was indeed contracting as a private individual to satisfy that need, i.e. as a consumer, or was doing so for the purpose of an investment business of hers (existing or planned).’

And at 65 in fine: the ‘question of purpose is the question to be asked, and it must be considered upon all of the evidence available to the court and not by reference to any one part of that evidence in isolation.’

At 68 he concludes ‘the purpose of her contract with Reliantco therefore was outside any business of hers’.

Baker J notes that he was not asked to defer any decision in C‑208/18 Petruchová. I believe it would have been of help to determine the issue before him. Tanchev AG (as noted, in an Opinion not available to Baker J at the time of his drafting his judgment) suggests that ‘to determine whether a person must be regarded as a consumer, reference must be made to the nature and objective of the contract, not to the subjective situation of the person concerned.’ 

Obiter, he then reviews Article 25, where CJEU authority discussed is ia Colzanni and Cars on the Web. Ms Ang contended that she was not able to access the standard terms web page at the time she opened her account, and therefore clause 27.1 did not comply with Article 25 B1a. At 78 extensive technical detail is discussed and at 80 Baker J finds that the Cars on the Web criterion of accessibility and durability were met; and at 81 that in any case, the current issue is not one of a click-wrap agreement for a signed hard copy of the GTCs with choice of court in it, had also been sent.

Equally obiter, at 83 ff Baker J summarily discussed the GDPR jurisdictional arguments which would have been more relevant had he not accepted jurisdiction under the consumer title. The brief discussion entirely fulfills my summer 2018 prediciton here: Article 79 GDPR will create a lot of issues at the level of jurisdiction.

A very relevant case.

Geert.

(Handbook of) EU private International Law, 2nd ed. 2016, Chapter 2, Heading 2.2.8.2.

Tanchev AG Opined mid last month in C-208/18 Jana Petruchová v FIBO Group Holdings, essentially on the issue whether Article 17(1) Bussels Ia is to be interpreted as covering an individual who engages in trade on the international currency exchange market through a third party professionally engaged in that trade.

Or, as the AG himself puts it at 3, whether a natural person which engages in trade on the FOREX market must be regarded as a consumer or whether, by reason of the knowledge and expertise required to engage in that trade, of the complex and atypical nature of the contract at issue, and of the risks incurred, that person cannot be considered a consumer, so that he falls outside the scope of the section affording protection referred to above.

Under consideration is inter alia the impact of Rome I and of Directive 2004/39 – the relation in other words between applicable law and jurisdiction, and between substantive law and jurisdiction – see also my review of Pillar Securitisation here.

Ms Petruchová, residing in Ostrava (Czech Republic), and FIBO Group Holdings Ltd (‘FIBO’), a brokerage company established in Limassol (Republic of Cyprus), entered into a contract entitled ‘Terms of Business’ (‘the Framework Agreement’ – with choice of court for Cyprus). The purpose of the Framework Agreement was to enable Ms Petruchová to make transactions on the FOREX market by placing orders for the purchase and sale of the base currency, which FIBO would carry out through its online trading platform.

At 29, the AG suggests in my view correctly (Handbook p.106 2nd full para) that for choice of court under Article 19 B1a to be valid, it must allow the consumer to bring proceedings in courts in addition to those identified by Article 18.

Article 17(1) of the Brussels Ia Regulation applies if three conditions are met: first, a party to a contract is a consumer who is acting in a context which can be regarded as being outside his trade or profession; second, the contract between such a consumer and a professional has actually been concluded; and, third, such a contract falls within one of the categories referred to in Article 17(1)(a) to (c) of that regulation.

The question referred to the Court in the present case relates to the first condition. The AG refers in particular to C-269/95 Benincasa; and C-498/16 Schrems. At 46, referring to these cases: to determine whether a person must be regarded as a consumer, reference must be made to the nature and objective of the contract, not to the subjective situation of the person concerned. 

(at 40) ‘The question before the Court of Justice is whether a person who carries out transactions on the FOREX market may be denied the status of a consumer by reason of the knowledge and the expertise required to engage in such trades, the value of the transaction, the fact that the person is actively placing his own orders, the risks incurred on the FOREX market, and the number and frequency of the transactions carried out.’

In essence therefore, do the sophistication of the market and the intensity of the individual’s voluntary engagement with it, impact on their qualification as a consumer? The AG opines they do not, and I am minded to agree given CJEU authority, in my view most correspondingly C-218-12 Emrek – which the AG does not refer to. In that case the CJEU emphasised the objective charachter of the Pammer /Alpenhof criteria, decoupled from the consumer’s actual introduction to the business via word of mouth rather than the website.

The AG also refers to Schrems, where the Court held that the notion of a consumer is ‘distinct from the knowledge and information that the person concerned actually possesses’.

At 48 the AG finds additional support in Directive 93/13/EECon unfair terms in consumer contracts – although as we know e.g. from Pillar Securitisation, such support has now become less substantial.

At 51 the AG also emphasises the predictability of the Brussels regime – a classic interpretative tool which was bound to make an appearance. At 54 he adds that the risks involved in the conclusion of CfDs cannot preclude classification as a consumer. Quite the reverse: because of the risks, consumers need to be protected. At 59 he rejects [2014] EWHC 1085 (Comm) AMT Futures v Marzillier as relevant (national) precedent, although I do not think that either he or the Commission properly presented Popplewell J’s views on the issue. As I noted in my review at the time, ‘I do not think too much should be read in these examples – more so, the insistence that circumstances of the case do have an impact on the qualification as ‘consumer’.

At 69 on the issue of consumers, the AG concludes that ‘in order to determine whether a person who engages in trade on the FOREX market should be regarded as a consumer within the meaning of Article 17(1) of the Brussels Ia Regulation, no account should be taken of that person’s knowledge; of the value of the contract; of the fact that the person actively places his own orders; of the risks incurred; or of the number and frequency of the transactions.’

That leaves the questions

• whether A17(1) BIa should be interpreted in a manner consistent with Article 6 Rome I, given that financial instruments such as CfDs are excluded from the scope of the rules applicable to consumer contracts laid down in Article 6(1) and (2) of the Rome I Regulation). Suggested answer: No: per Kainz, and now also I would suggest, Pillar Securitisation; and
• whether account should be taken of the fact that the person is a retail client within the meaning of Directive 2004/39: for similar reasons: ditto answer.

Geert.

(Handbook of) European Private International Law, 2nd ed. 2016, Chapter 2, Heading 2.2.8.2.

Liverpool have just beaten Barcelona 4-0 to reach the Champions League finals, and I am slowly making my way through marking a smallish pile of essay papers. Yet in the midst of all of this I was asked whether the Swedish language and societal phenomenon of ‘Flygskam’ has an English equivalent.

Flygskam stands for being ashamed of flying. ‘Flying shame’ is what the English speaking media seem to have come up with so far.

Embarrassment of flying, therefore. Putting an embarrassment to take to the air together, I came up with Embairrassment.

I might be the first to do so and I hope it might, well, take off or indeed, fly.

Geert.

The CJEU held last week in C-694/17 Pillar Securitisation (v Hildur Arnadottir), on the Lugano Convention’s protected category of consumers. I have review of Szpunar AG’s Opinion here. The issues that are being interpreted are materially very similar as in Brussels I Recast hence both evidently have an impact on the Brussels I Recast Regulation, too (see in that respect also C‑467/16 Schlömp).

At stake in Pillar Securitisation is the meaning of ‘outside his trade or profession’ in the consumer title. The CJEU at 22 rephrases the case as meaning ‘in essence, whether Article 15 of the Lugano II Convention must be interpreted as meaning that, for the purposes of ascertaining whether a credit agreement is a credit agreement concluded by a ‘consumer’ within the meaning of Article 15, it must be determined whether the agreement falls within the scope of Directive 2008/48 in the sense that the total cost of credit in question does not exceed the ceiling set out in Article 2(2)(c) of that directive and whether it is relevant, in that regard, that the national law transposing that directive does not provide for a higher ceiling.’

The CJEU notes that Pillar Securitisation claims that Ms Arnadottir acted for professional purposes and is not covered by the definition of a ‘consumer’. However, the referring court has not referred any question to the Court on the purpose of the credit agreement concluded. On the contrary, as is clear from the wording of the question that it did refer, the referring court asks its question to the Court on the assumption that the contract at issue was concluded for a purpose that can be regarded as being outside Ms Arnadottir’s profession. In addition, in any event, the order for reference does not contain sufficient information in order for the Court to be capable, where relevant, of providing useful indications in that regard (not much help therefore to assist with the interpretation of issues such as in Ang v Reliantco, on which I shall be reporting next).

As I wrote in my review of the AG’s Opinion: the issue is how far does material EU law impact on its private international law rules. I referred in my review to the need to interpret Vapenik restrictively, and to Kainz in which the CJEU itself expressed caution viz the consistent interpretation between jurisdictional and other EU rules, including on applicable law and on substantive law.

I am pleased to note the Court itself makes the same observation, and emphatically so: at 35: ‘the need to ensure consistency between different instruments of EU law cannot, in any event, lead to the provisions of a regulation on jurisdiction being interpreted in a manner that is unconnected to the scheme and objectives pursued by that regulation.’ Subsequently establishing the very diffeent purposes of both sets of law, the CJEU rejects impact on one over the other (and also remarks that Pillar Securitisation’s reference to the Pocar report needs to be taken in context: prof Pocar referred to Directive 2008/48 by way of example only).

Conclusion: for the purposes of ascertaining whether a credit agreement is a credit agreement concluded by a ‘consumer’ within the meaning of Article 15, it must not be determined whether the agreement falls within the scope of Directive 2008/48 in the sense that the total cost of credit in question does not exceed the ceiling set out in Article 2(2)(c) of that directive, and it is irrelevant, in that regard, that the national law transposing that directive does not provide for a higher ceiling.

A good judgment.

Geert.

(Handbook of) European Private International Law, 2nd ed. 2016, Chapter 2, Heading 2.2.8.2.

Professor Dr Robert Magnus is looking for a highly skilled and motivated PhD candidate and fellow (Wissenschaftliche/r Mitarbeiter/in) to work at the Chair for Civil Law, Private International Law and Civil Procedural Law, EBS Law School Wiesbaden, Germany, on a part-time basis (50%).

The successful candidate holds the First German State Examination in Law. A good command of English and additional language skills are an advantage.

The fellow will be given the opportunity to conduct his/her PhD project (according to the Faculty’s regulations). The initial contract period is two years, with an option to be extended. Responsibilities include research and teaching.

If you are interested in this position, please send your application (cover letter; CV; and relevant documents and certificates, notably university transcripts and a copy of law degree) by email to robert.magnus@ebs.edu or by mail to

Lehrstuhl für Bürgerliches Recht, Internationales Privatrecht und Zivilprozessrecht
EBS Universität für Wirtschaft und Recht
Gustav-Stresemann-Ring 3
65189 Wiesbaden

Further information can be found here.

Written by Leonhard Huebner, Institute for Comparative Law, Conflict of Laws and International Business Law (Heidelberg University)

The third-party effects of the assignment are one of the “most discussed questions of international contract law” as it concerns the “most important gap of the Rome I Regulation”. This gap is regrettable not only for dogmatic reasons, but above all for practical reasons. The factoring industry has provided more than 217 billion euros of working capital to finance more than 200,000 companies in the EU in 2017 alone. After a long struggle in March of 2018, the European Commission, therefore, published a corresponding draft regulation (COM(2018)0096; in the following Draft Regulation). Based on a recent article (ZEuP 2019, 41) the following post explores whether the Draft Regulation creates the necessary legal certainty in this economically important area of law and thus contributes to the further development of European private international law (see also this post by Robert Freitag).

Legal background and recent case law

Although Article 14 of the Rome I Regulation provides for a rule governing the question regarding which law is applicable to the voluntary assignments of claims, it is the prevailing opinion that the third party effects of assignments are not addressed within the Rome I Regulation. According to Article 27 (2) of the Rome II Regulation, the European Commission was under the obligation to submit a report concerning the question of the effectiveness of an assignment or subrogation of a claim against third parties and the priority of the assigned or subrogated claim over a right of another person. Said report should have been published no later than 17 June 2013. In March 2018, almost nine years after the Rome I Regulation came into force, the Commission finally presented said report in form of the Draft Regulation subject to this article. The practical importance and the need for a harmonized European approach have also been demonstrated by recent case law proving the rather unsatisfactory status quo in European PIL. Two recent decisions of the Higher Regional Court of Saarbrücken (dated 8 August 2018 – 4 U 109/17) and of the Norwegian Supreme Court (see IPRax 2018, 539) gave striking examples of how the diverging requirements for the effectiveness of the assignment vis-à-vis third parties lead to different solutions within the respective PIL rules of the member states. The preliminary reference to the ECJ of the Higher Regional Court of Saarbrücken concerns a multiple assignment, while the ruling of the Norwegian Court of Justice deals with the question whether unsecured creditors of the assignor can seize the allegedly assigned claims of the assignor in insolvency (see also this post by Peter Mankowski).

The material scope of the proposed regulation

Art. 5 of the Draft Regulation determines the material scope of application of said Draft Regulation with regard to the effectiveness of an assignment as well as its priority vis-à-vis third parties. The effectiveness vis-à-vis third parties is regularly determined by registration or publication formalities (lit. a), while priority conflicts for the assignee arise vis-à-vis various persons. Lit. b) concerns multiple assignments, while lit. c) regulates the priority over the rights of the assignor’s creditors. In addition, lit. d) and e) assign priority conflicts between the assignee and the rights of the beneficiary of a contract transfer/contract assumption and a contract for the conversion of debts to the Draft Regulation.

In essence, Art. 5 of the Draft Regulation covers notification requirements to the assignee. Most legal systems require a publicity act for binding effects vis-à-vis third parties and the debtor, such as a notice of assignment to the debtor or a registration in a public register. Whereas under German law the assignment becomes effective immediately between the assignor and the assignee as well as against third parties, in other jurisdictions this only applies once the debtor has been notified of the assignment (signification in French law pursuant to former Art. 1690 of the Code civil or within the framework of legal assignment in the UK).

Connecting factor: habitual residence of the assignor combined with sectorial exceptions

The connecting factors employed by current national PIL rules considerably vary between the member states. In principle, three connecting factors compete with each other: the habitual residence of the assignor, the law applicable to the transfer agreement (assignment ground statute) and the law applicable to the transferred claim. Furthermore, the law at the debtor’s domicile might also be considered an important factor.

Art. 4 (1) of the Draft Regulation unties this gordic knot as it specifies the law of the country in which the assignor has his habitual residence “at the relevant time” as the primary connecting factor. The goal of the European Commission is to create legal certainty and, above all, to promote cross-border trade in claims. By way of sectoral exceptions, the law of the transferred claim is to be applied if either (i) “cash collateral” credited to an account or (ii) claims from financial instruments are transferred (Art. 4 (2) of the Draft Regulation).

A downside of the link to the law of habitual residence is its changeability, which may lead to a conflit mobile. By altering the connecting factor, the applicable law may also change leading to legal uncertainty. To overcome such conflict, so called meta conflict of laws rules are also provided for in the Draft Regulation. In this case, it is a matter of determining the relevant point in time in order to make a viable connection. This rule has been implemented in Art. 4 (2) of the Draft Regulation.

An unsolved problem is the determination of the “material point in time” cited in Art. 4 (1) of the Draft Regulation. Accordingly, the third parties’ effects are determined by the assignor’s habitual residence at the relevant time. However, neither a recital nor the catalogue of Art. 2 of the Draft Regulation give an adequate definition of this relevant point in time so far. It is therefore advisable to replace the term “at the relevant time” with “at the time of conclusion of the assignment contract” in the final regulation. This is also reflected in the EP’s legislative resolution of 13 February 2019 (P8_TA-PROV(2019)0086, p. 12). The advantage of this clarification would be that the same point in time would be relevant in the legal systems of the member states which follow the principle of separation as well as those which follow the principle of unity.

A step forward?

The Draft Regulation would represent a major step forward in the trade of cross-border receivables in the EU. It closes a large gap within European PIL, while at the same time aiding EU member states to partly adapt their domestic legal system accordingly. Even if the European Commission did not comply with the (unrealistic) deadline for the review cited in Art. 27 (2) of the Rome I Regulation, the legal debate made this essential progress possible demonstrating the EU’s ability to reach compromises. Although the Draft Regulation solves many problems, it may also raise new ones. That is again good news for lawyers interested in PIL. Nevertheless, the enactment of the Draft Regulation would eventually answer “one of the most frequently discussed questions of international contract law”. The old saying “patience is a virtue” would be proven right again.

This blog post is a condensed version of the author’s article in ZEuP 2019, 41 et seqq. which explores the new Draft Regulation in more detail and contains comprehensive references to the relevant literature.

The Duke Journal of Comparative and International Law has published two new articles on the Hague Judgments project, just in time for the upcoming Diplomatic Session in June. David Goddard QC, Chair of the Special Commission on the Judgments Project, describes the current state of play in the development of a draft Convention and identifies some of the key issues that participants will need to address when they meet in June. Louise Ellen Teitz (Roger Williams University and formerly First Secretary at the Hague Conference) provides the background on the negotiations through the years and suggests bucking the past to provide for the future. Both articles, emerging from symposia at NYU and at the AALS annual meeting respectively, will be essential reading for participants and observers of the Diplomatic Session.

In [2019] EWCA Civ 38 Huawei v Conversant Wireless (on appeal from [2018] EWHC 808 (Pat) the Court of Appeal considered whether in the event of 2 defendants being UK based (the others domiciled in China) the UK courts may relinquish jurisdiction reflexively to honour Article 24(4) Brussels Ia’s exclusive jurisdictional rule for the validity of patents.

Neither Article 33’s lis alibi pendens or Article 34’s ‘forum non conveniens’ rule were discussed.

Huawei China and ZTE China have commenced proceedings in China against Conversant, seeking to establish invalidity and (in the case of Huawei China only) non-infringement of Conversant’s Chinese patents. Conversant have inter alia sued Huawei China and ZTE China in Germany for infringement of its German patents.

Following Owusu, jurisdiction for infringement of UK patents against UK incorporated companies must lie and remain with the English courts per Article 4 B1a. As readers will remember from my review of Ferrexpo, the English courts for some time however have noticed with relish that the CJEU in Owusu did not entertain the part of the referral which asked it whether exclusive jurisdictional rules may apply reflexively – holding thereafter in the CJEU’s stead that they might so do (in a discretionary: not a slavish fashion: Floyd J here at 115).

At 95 ff Floyd J discusses the issues after having summarised the various representations made (see a summary of the summary by John de Rohan-Truba here), with much of the discussion turning on English CPR and jurisdictional rules, and reflexive application of Article 24(4) confirmed in principle, but not applied here. Requests to refer to the CJEU were summarily dismissed.

Geert.

(Handbook of ) European Private International Law, 2nd ed. 2016, Chapter 2, Heading 2.2.6.7, Heading 2.2.9.5.

In [2019] EWHC 982 (Comm) Pan Ocean v China-Base Group, Hancock J reviews CJEU authority old and new on Article 25 Brussels I Recast at length, starting with Colzani and Segoura and ending with Profit Sim.

The sole but important focus of the discussion is on Article 25 (1)(a)s ‘in writing or evidenced in writing’ (the Article’s other options for the existence of expression of consent were not under discussion: see at 32).

His conclusion, justifiable in my view, is (at 32) that there is no authority (CJEU or otherwise) which would go so far as to say that agreement to an exclusive jurisdiction clause which was implied solely from the conduct of the parties suffices for the purposes of compliance with Article 25.

At 35 ff he considered obiter the issue of anti-suit aimed at Singapore, had he decided that there is a valid clause, in summary rejecting that, too, at 63.

(Handbook of) EU private international law, 2nd ed. 2016, Chapter 2, Heading 2.2.9, Heading 2.2.9.

The latest issue of RabelsZ has just been released. It focuses on “legal methodology” and contains the following articles:

Reinhard Zimmermann, Reinhard, Juristische Methodenlehre in Deutschland (Legal Methodology in Germany), pp. 241 et seq

The existence of a method, and thus also of a methodology, is very widely regarded as essential for an academic discipline. In Germany, law is, and has always been, an academic discipline. It is the object of what is referred to as Rechtswissenschaft (literally: legal “science”; less literally: scholarship relating to the law), characterized by a specifically legal methodology. Legal methodology is a foundational subject taught in German law faculties and set out in a rich body of legal literature. The present essay attempts to assess, on the basis of that literature, how lawyers are conceived (or perhaps rather: supposed) to operate in Germany. A specificity of the German discourse is the conceptual distinction between statutory interpretation and judicial development of the law. The essay provides an analysis of the various factors relevant within the enterprise of statutory interpretation, and of the prerequisites, the different levels, and the legitimacy of judicial development of the law. It also alerts the reader to the political experiences overshadowing the methodological discourse in Germany. The essay starts with five observations of a more general nature focusing on (i) methodological commonalities in Germany, Switzerland, and Austria; (ii) the normative character of the methodological discourse; (iii) (emerging) methodological differences between different fields of law; (iv) the place of Rechtsdogmatik (legal doctrine and the scholarship associated with its creation); and (v) the historical background of the German discourse.

Gregor Christandl, Juristische Methodenlehre in Italien oder: Kurze Geschichte der italienischen Zivilrechtswissenschaft ab dem 19. Jahrhundert (Legal Methodology in Italy – A Brief History of Italian Private Law Scholarship since the 19th Century), pp. 288 et seq

In Italy, as in other continental legal systems, it is common to refer to “legal science” (scienze giuridiche) with regard to legal scholarship. Since the main purpose of such a legal science is the solution of practical cases or legal problems, it requires a method, or in other words, a prescribed process of single steps that lead to a solution. It is the purpose of this article to find out whether there is any discussion of such legal methodology in Italy, what role it plays in academic legal education and how it has developed since the 19th century. If one agrees that all legal methodology comes down to methods of interpretation of the law, the history of methodology is a history of interpretation. This article therefore also recounts the major developments in the history of interpretation of Italian private law and critically assesses the latest stage of “Italian legal style” in the last fifty years.

Coro Jansen, The Methodology of Dutch Private Law from the Nineteenth Century Onwards, pp. 316 et seq

– No abstract available –

Gerhard Dannemann, Juristische Methodenlehre in England (Legal Methodology in England), pp. 330 et seq

There is no equivalent to the German juristische Methodenlehrein English law. Four of its aspects have appeared to different degrees, in different combinations, and at different times in English legal education and textbooks: (i) the development of case law through the doctrine of binding precedent; (ii) the interpretation of statutes; (iii) jurisprudence; and (iv) the classification and systematization of English law. Based on a historical review of legal education at English universities, the article describes that aspects (i) and (ii) continue to be taught, but separately from (iii), which no longer is a core element at many universities, and that (iv), never a strength of the common law, is frequently neglected. The article offers six reasons why something akin to juristische Methodenlehre  has never taken off in English law: (i) when legal methodology was refined and developed in 19th  century Germany, English law was facing very different problems and only saw the beginnings of university education; (ii) unlike in Germany, legal methodology has never been a compulsory element of legal education; (iii) employers, whose professional organizations still determine the compulsory elements of the legal education syllabus, expect more practical than methodological skills; (iv) student demand for legal methodology has been consistently low; (v) a three-year syllabus for an English LL.B. can accommodate fewer subjects than a four- to five-year syllabus for a German first degree in law; and (vi) English law has demonstrated with its development of case law over the last decades in particular that it is nevertheless quite capable of achieving the goals which German legal methodology seeks to attain, doing so arguably better than German law.

Hans Petter Graver, Teaching Legal Method in Norway, pp. 346 et seq

– No abstract available –

Gabriele Koziol, Juristische Methodenlehrein Japan (Legal Methodology in Japan), pp. 361 et seq

Starting in the 1920s, legal methodology established itself as the object of lively discussions in Japan. Unlike in Germany, however, the discussion did not focus on concrete problems of statutory interpretation, being led instead on a more abstract level. Issues discussed included, for instance, the question of how to deal with law imported from Western countries at the end of the 19th century and the importance of legal dogmatics, considering also the relationship of case law and statutes. While for some time a pragmatic approach prevailed – an approach sometimes even rejecting the binding nature of statutes – in recent years there has once again been a tendency towards a more systematic-functional approach. In legal practice, a set of interpretation methods is generally acknowledged which by and large resemble those adopted under German law. However, some peculiarities of Japanese court practice can be found with regard to the acknowledged sources of law as well as, for example, the use of analogy. In legal education at universities, legal methodology does not play an important role. Nevertheless, the academic discussion on methodological issues has also dealt with the question of what legal education should look like. Currently, the discourse on methodological questions is witnessing a revival, partly due to an increased interest in law and economics. Also, the recent reform of the law of obligations could bring about some changes in the approach to statutory interpretation.

A very brief post mainly for archival purposes particularly with a view to comparative conflict of laws. Tozzini Freire review the new Article 25 of Brasil’s civil procedure rules here, with a focus on the ‘international’ element required to trigger the validity of choice of court (compare Vinyls Italia), and the potential application of fraus in same.

Geert.

Handbook of) EU private international law, 2nd ed. 2016, Chapter 5, Heading 5.7.1. Chapter 3, Heading 3.2.8.1

This year’s annual meeting of the German branch of the International Law Association will take place in Frankfurt/Main on 7 June 2019. The current topic will be the question whether there is a renaissance of soft law in international law. The confirmed speakers include Professors Michael Stürner (University of Konstanz), Mahulena Hofmann (University of Luxembourg) and Jürgen Bast (University of Gießen). The speakers will address the subject both from a public and a private international law perspective, with a special focus on the harmonisation of private law, on space law and on the UN Global Compact on Migration. For further information and registration, please click here.

[2019] EWHC 724 (Comm) ArcelorMittal USA LLC v Essar Steel Limited and others is quite the highlight in worldwide regulatory competition for championing arbitration.

As 20 Essex Street note, Jacobs J refused to vary an earlier worldwide freezing order (WFO), despite the award being foreign, Claimant and Defendant companies being foreign, there being no significant assets within the jurisdiction, and the courts at Mauritius (defendant is Mauritius-incorporated, defendant to the Arbitration Claim, and the debtor under the ICC award) potentially feeling gazumped by their English colleagues.

Of note over and above Essex Street’s analysis is

• the defendants urging the Court on the grounds of comity (no need for the English courts to act at policeman for assets located abroad: at 72, referring to Popplewell J. in Conocophillips China Inc v Greka Energy (International) BV. [2013] EWHC 2733) to resist the call for a WFO. This was rejected (at 81) with the argument ‘I consider that I am entitled to proceed on the basis of the evidence that the Mauritian courts would not regard the WFO as offensive in some way.’; and ‘The WFO does not presently conflict with any order of the Mauritian courts, and this is not a case where the Mauritian courts have refused equivalent relief or where there is evidence that those courts would be likely to do so.’ Jacobs J therefore does consider comity quite carefully.

• the Court’s sense of urgency in what it sees as a case of fraus: At 45:

‘There is no precise definition of what is meant by the phrase “international fraud” found in the case-law, but I do not consider that it is confined to cases where the underlying cause of action is a claim in deceit or a proprietary claim relating to the theft of assets. If there is a strong case of serious wrongdoing comprising conduct on a large or repeated scale whereby a company, or the group of which it is a member, is acting in a manner prejudicial to its creditors, and in bad faith, then I see no reason why the English court should not be willing to intervene rather than to stand by and allow the conduct to continue and, to put the matter colloquially, to let the wrongdoer get away with it. In the present case, I would regard the attempted dissipation of Essar Steel’s US$ 1.5 billion asset, in the face of the commencement of arbitration proceedings, as sufficient in itself potentially to warrant intervention under the “international fraud” exception, or as constituting “exceptional circumstances”.’

• and the rejection at 73 of a CJEU C-391/95 Van Uden type of restraint, requiring a real connecting link between the subject matter of the measures sought and the territorial jurisdiction of the English court.

Geert.

The Max Planck Institute Luxembourg has launched a call for applications for PhD scholarships in 2020. Advanced doctoral students working in comparative procedural law, international procedural law and adjudication are invited to apply by 31 May 2019. While proficiency in English is compulsory, the call is also open to doctoral candidates writing their thesis in a language other than English.

The scholarship offers young scientists the opportunity to stimulate their scientific inspiration and advance their research in a dynamic environment. In addition to a monthly grant of 1.500 €, the selected candidates will be offered a workstation in the reading room, and will have the opportunity to participate in the Institute’s scientific activities.

More information about the call is available here.

The final conference for the EU-funded IC2BE project will take place in Antwerp on 21 and 22 November 2019.

This project is the follow-up of the EUPILLAR project, which was concluded in 2016.

IC2BE investigates in eight Member States the application of the European Private International Law Instruments of the second generation, i.e. the unified procedures for cross-border enforcement. The discussed regulations include the European Enforcement Order (805/2004), European Payment Order (1896/2006), the European Small Claims Procedure (861/2007) and Account Preservation Order (655/2014).

The research is coordinated by the University of Freiburg and carried out by a consortium consisting of the Max-Planck-Institute Luxembourg and the Universities of Antwerp, Madrid (Complutense), Milan, Rotterdam and Wroclaw. The investigated Member States are Belgium, France, Germany, Italy, Luxembourg, the Netherlands, Poland, and Spain. The case law of the Court of Justice of the EU is also analysed.

The research method combined setting up a database of case law and interviews with lawyers, judges, businesses and consumer organisations. The case law database  (not yet complete) is available here.

The conference will discuss the specific problems that these procedures raise and look into the perspectives for a more coherent European system of cross-border enforcement. Speakers will include the project researchers, distinguished academics, policy makers and stakeholders such as judges, lawyers, businesses and consumer organisations. Confirmed speakers include Paul Beaumont, Gilles Cuniberti, Burkhard Hess, Xandra Kramer and Jan von Hein.

More information, including the draft programme is available here. Registration will be possible on this page soon, but please save the date in the mean time!