Flux des sites DIP

There is just a month to go for the Private International Law: Embracing Diversity event taking place in Edinburgh, organized by the University in cooperation with several other institutions from the UK and abroad. The updated program of this one-day meeting of PIL experts can be downloaded here. Please remember the venue (St. Trinnean’s Room, St. Leonard’s Hall – University of Edinburgh, EH16 5AY), and also that registration is required at www.law.ed.ac.uk/events (attendance fee: £40.00 per attendee).

La giurisprudenza italiana sui regolamenti europei in materia civile e commerciale e di famiglia, edited by / a cura di Stefania Bariatti, Ilaria Viarengo, Francesca Clara Villata, Cedam, 2016, pp. 527, ISBN 9788813358686, EUR 55

Il volume che si licenzia rappresenta l’opera conclusiva delle attività svolte da un gruppo di ricerca dell’Università degli Studi di Milano nell’ambito del progetto internazionale di ricerca “Cross-border litigation in Europe: Private International Law – Legislative framework, national courts and the Court of Justice of the European Union” – EUPILLAR, finanziato dalla Direzione generale Giustizia e consumatori della Commissione europea, iniziato il 1° ottobre 2014 e conclusosi il 30 settembre 2016. Oggetto dell’indagine sono stati alcuni regolamenti dell’Unione europea in materia di diritto internazionale privato e processuale, adottati nel settore della cooperazione giudiziaria in materia civile, e la relativa giurisprudenza italiana, anche sotto il profilo di un proficuo dialogo dei giudici nazionali con la Corte di giustizia dell’Unione europea. L’indagine è stata condotta in parallelo dai partner del consorzio di ricerca, vale a dire, accanto all’Università degli Studi di Milano, nelle sue due componenti del Dipartimento di Diritto pubblico italiano e sovranazionale e del Dipartimento di Studi internazionali, giuridici e storico-politici, l’Università di Aberdeen (Scozia), che ha coordinato il progetto, le Università di Anversa (Belgio), Breslavia (Polonia), Friburgo (Germania), Leeds (Inghilterra) e Madrid (Universidad Complutense, Spagna). 

My colleague Adriani Dori (MPI Luxembourg) kindly reminded me today: EU Regulation 655/2014 applies from 18 January 2017.

There is as yet no EU harmonisation on amino acids, in so far as they have a nutritional or physiological effect and are added to foods or used in the manufacture of foods. A range of EU foodlaws therefore do not apply to national action vis-a-vis amino acids, in particular Regulation 1925/2006 – the food supplements Regulation. In the absence of specific EU law rules regarding prohibition or restriction of the use of other substances or ingredients containing those ‘other substances’, relevant national rules may apply ‘without prejudice to the provisions of the Treaty’.

In C-282/15 Queisser Pharma v Germany, moreover there were no transboundary elements: Articles 34-36 TFEU therefore do not in principle apply.

No doubt food law experts may tell us whether these findings are in any way unusual, however my impression is that the Court of Justice in this judgment stretches the impact of the ‘general principles of EU food law’ as included in Regulation  178/2002. Indeed the Court refers in particular to Article 1(2)’s statement that the Regulation lays down the general principles governing food and feed in general, and food and feed safety in particular, at EU and national level (my emphasis). Article 7 of the Regulation is of particular relevance here. That Article gives a definition of the precautionary principle, and consequential constraints on how far Member States may go in banning foodstuffs, as noted in the absence of EU standards and even if there is no cross-border impact.

Article 7 Precautionary principle

1. In specific circumstances where, following an assessment of available information, the possibility of harmful effects on health is identified but scientific uncertainty persists, provisional risk management measures necessary to ensure the high level of health protection chosen in the Community may be adopted, pending further scientific information for a more comprehensive risk assessment.

2. Measures adopted on the basis of paragraph 1 shall be proportionate and no more restrictive of trade than is required to achieve the high level of health protection chosen in the Community, regard being had to technical and economic feasibility and other factors regarded as legitimate in the matter under consideration. The measures shall be reviewed within a reasonable period of time, depending on the nature of the risk to life or health identified and the type of scientific information needed to clarify the scientific uncertainty and to conduct a more comprehensive risk assessment.

Germany on this point is probably found wanting (‘probably’, because final judgment on the extent of German risk assessment is left to the national court) – reference is best made to the judgment for the Court’s reasoning. It is clear to me that the way in which the Regulation defines precaution, curtails the Member States considerably. Further ammunition against the often heard, and wrong, accusation that the EU is trigger happy to ban substances and processes in the face of uncertainty.

Geert.

It is my pleasure to give notice of a recently published monograph of my colleague Dr. Javier Maseda Rodríguez (Associate Professor of private international law at the University of Santiago de Compostela, Spain), entitled

La ley aplicable a la titularidad original de los derechos de propiedad intelectual sobre las obras creadas en el marco de una relación laboral (The law applicable to the initial ownership of intellectual property rights of works created in the context of an employment relationship).

This monograph aims to identify the applicable law to the initial ownership of intellectual property rights to works created in the context of an employment relationship. The topic is indeed a classic one for private international law scholars with an interest in intellectual property. Still, it remains a hot issue, as shown in a book that compiles with a comparative intent normative, practical and doctrinal positions on the subject, explaining at the same time the reception in Spanish law of regulations alien to the Spanish tradition – such as Art. 11 (2) English Copyright, Designs and Patent Act 1988, Art. 7 Dutch IPL or the works made for hire from sect. 201.b, par. 17, American Copyright Act 1976.

The research undertaken by Dr. Maseda Rodríguez evinces the controversy raised by the ascription of the initial ownership of intellectual property rights to a specific work, in light of the different responses given by legal systems –and this, in spite of the rapprochement among systems thanks to rules like the Berne Convention for the Protection of Literary and Artistic Works of September 9, 1886-, both in general and with respect to works created in the context of an employment relationship. Hence the comparative law analysis, providing support for the different viewpoints as to the applicable law: on the one hand, the continental systems of droit d’auteur, which identify the employee as the author and therefore as original holder of economic and moral rights (art. 1, 5.1, 51 y 97.4 Spanish LPI). On the other, the copyright systems, which consider the entrepreneur/employer, who facilitates the creation by investing in the product, as author, and therefore as original holder of all rights, economic and moral (art. 11 (2) English Copyright, Designs and Patent Act 1988, the art. 7 Dutch IPL or works made for hire of the sect. 201.b, par. 17, American Copyright Act 1976).

The absence of any material notion of author facilitates to address the question of the original ownership of intellectual property rights from a pure conflict-of-law rules perspective. Dr. Maseda approaches the issue from two points of view -employment and intellectual property-, regulated by different applicable rules –the lex laboris and the law regulating intellectual property rights. The pros and cons of both solutions are discussed; so is their respective implementation, which is explained decoupling moral and economic intellectual property rights, as their different nature result in different problems.

Regarding the implementation of the lex laboris to the original ownership of economic intellectual property rights the following three issues are tackled with in the monograph: first, the reception of copyright rules into Spanish law; secondly, the problems generated by the availability of economic intellectual property rights by its original owner; thirdly, the restrictions to the lex laboris (protection of the salaried creator: limits to party autonomy, and the recourse to the lois de police or the international public policy regarding the original ownership of economic intellectual property rights).

Concerning the implementation of the lex loci protectionis to the original ownership of moral rights, the author examines the case of claims for the Spanish territory and for a foreign country. From this point of departure he addresses the reception of foreign norms regulating authorship and/or the initial ownership of moral intellectual property rights in favor of the employer; and the compatibility with the Spanish public policy of the waiver of moral rights in favor of the employer (for instance through by way of a clause in the employment contract).

Finally, the coexistence of both regulations –the lex laboris and the lex loci protectionis– is also addressed, with a special emphasis on the conciliation of the conflicting interests between employer and employee.

Dr. Javier Maseda Rodríguez’s monograph is the sixteenth volume within the series De conflictu legum, a compilation of monographs especially devoted to private international law with a specific focus on civil procedural international law, conflict of law rules and international commercial law.

A quick note on second-hand goods and VAT. For my review of Bot AG’s Opinion in C-471/15 Sjelle Autogenbrug, see here. The Court held yesterday and defined (at 32) second-hand goods essentially as follows: in order to be characterised as ‘second-hand goods’, it is only necessary that the used property has maintained the functionalities it possessed when new, and that it may, therefore, be reused as it is or after repair.

The Court does not refer to EU waste law yet the impact on that area of EU law is clear.

Geert.

Handbook of EU Waste Law, second ed. 2016, Chapter 1.

Regulation (EU) n. 655/2014 establishing a European Account Preservation Order (EAPO) procedure to facilitate cross-border debt recovery in civil and commercial matters is applicable as of today, 18 January 2017. The relevant section of the European e-Justice Portal has been updated: the application forms can be completed online.

È applicabile da oggi, 18 gennaio 2017, il regolamento (UE) n. 655/2014 che istituisce una procedura per l’ordinanza europea di sequestro conservativo (OESC) su conti bancari al fine di facilitare il recupero transfrontaliero dei crediti in materia civile e commerciale. La sezione del Portale europeo della giustizia elettronica relativa al regolamento è stata aggiornata: i relativi moduli possono essere completati online.

In her long-awaited speech on what Brexit actually means for the future application of the acquis communautaire in the United Kingdom, British Prime Minister Theresa May, on 17 January, 2017, stressed that the objective of legal certainty is crucial. She further elaborated:

“We will provide certainty wherever we can. We are about to enter a negotiation. That means there will be give and take. There will have to be compromises. It will require imagination on both sides. And not everybody will be able to know everything at every stage. But I recognise how important it is to provide business, the public sector, and everybody with as much certainty as possible as we move through the process. So where we can offer that certainty, we will do so. […] And it is why, as we repeal the European Communities Act, we will convert the ‘acquis’ – the body of existing EU law – into British law. This will give the country maximum certainty as we leave the EU. The same rules and laws will apply on the day after Brexit as they did before. And it will be for the British Parliament to decide on any changes to that law after full scrutiny and proper Parliamentary debate.”

At the same time, May promised that “we will take back control of our laws and bring an end to the jurisdiction of the European Court of Justice in Britain.”

(The full text of the speech is available here.)

This unilateral approach seems to imply that the EU Regulations on Private International Law shall apply as part of the anglicized “acquis” even after the Brexit becomes effective. This would be rather easy to achieve for the Rome I Regulation. In addition, a British version of Rome II could replace the Private International Law (Miscellaneous Provisions) Act of 1995, except for defamation cases and other exemptions from Rome II’s scope. At the end of the day, nothing would change very much for choice of law in British courts, apart from the fact that the Court of Justice of the European Union could no longer rule on British requests for a preliminary reference. Transplanting Brussels Ibis and other EU procedural instruments into autonomous British law would be more difficult, however. Of course, the UK is free to unilaterally extend the liberal Brussels regime on recognition and enforcement to judgments passed by continental courts even after Brexit. It is hard to imagine, though, that the remaining EU Member States would voluntarily reciprocate this favour by treating the UK as a de facto Member State of the Brussels Ibis Regulation. Merely applying the same procedural rules in substance would not suffice for remaining in the Brussels Ibis camp if the UK, at the same time, rejects the jurisdiction of the CJEU (which it will certainly do, according to May). Thus, the only viable solution to preserve the procedural acquis seems to consist in the UK either becoming a Member State of the Lugano Convention of 2007 or in concluding a special parallel agreement similar to that already existing between Denmark and the EU (minus the possibility of a preliminary reference, of course). Since only the latter option would allow British courts to apply the innovations brought by the Brussels I recast compared with the former Brussels and the current Lugano regime, it should clearly be the preferred strategy from the UK point of view – but it cannot be achieved unilaterally by the British legislature.

The issue under consideration in Citysprint was whether claimant, Ms Dewhurst, a cycle courier, was an employee of Citysprint or rather, as defendant would have it, a self-employed contractor. I am not a labour lawyer but I do have an interest in the ‘gig economy’, peer to peer etc. [Note Google defines (or conjures up a definition of) the gig economy as a labour market characterized by the prevalence of short-term contracts or freelance work as opposed to permanent jobs].

I also have an interest in language and the law. After an employment tribunal in Uber blasted the company’s use of byzantine language, in Citysprint, too, (in particular at 64 ff) the tribunal looks beyond the fog of legalese to qualify the contract for what it really is. A great development.

Geert.

DOOR PHILIPPE NYS. “Wie willen we de volgende keer uitnodigen? Angela Merkel misschien, via een eredoctoraat van de KU Leuven?” Het was een lachende opmerking, net na de Ekonomikalezing van Guy Ver…

Source: Oog in oog met Angela Merkel, leider van de vrije wereld

Hooley [Hooley v The Victoria Jute Company Ltd and others [2016] CSOH 14] has been sitting in my in-box for a few months. It concerns the liquidation (particularly: selling of companies’ assets by liquidators under Scots law) of companies incorporated in Scotland but with COMI (centre of main interests) outside the EU. In particular, India.

Given the presence of COMI outside the EU, the Insolvency Regulation does not apply. Indeed the Court of Session (Lord Tyre) does not refer to it at all.Findings would have been very different were the Regulation to apply: place of incorporation has to give way to COMI, where these two do not coincide, in which circumstance the place of incorporation at best may open secondary proceedings.

At issue was among others (and for the first time in a Scots court, I understand) the consideration of ‘modified universalism’: ie what is the practical impact of there being a company incorporated in Scotland, given Scots courts and administrators jurisdiction over the insolvencies, when the companies’ business is mainly carried out abroad and when proceedings are also pending abroad.

Per Rubin v Eurofinance, Universalism” means the “administration of multinational insolvencies by a leading court applying a single bankruptcy law.”  The principle of modified universalism was stated by Lord Sumption in Singularis Holdings Ltd v Pricewaterhouse Coopers [2015] AC 1675 (PC) at para 15 as being that “the court has a common law power to assist foreign winding up proceedings so far as it properly can” (see also Lord Collins at paragraph 33 and Lord Clarke of Stone‑cum‑Ebony at paragraph 112).

Essentially Lord Tyre had to decide whether the Scottish administrators’ powers were only exercisable to the extent that their exercise was recognised as legally valid by the law of the relevant non-UK jurisdiction. He held (at 36) that the proceedings taking place in India were ancillary to the administration proceedings in Scotland. The powers of a validly appointed administrator to a Scottish company were therefore not limited by the Indian winding up.

As often of course this judgment is but one side of the coin. Indian courts are at liberty to disregard the Scots findings. Any purchasers of Hooley assets therefore will have a compromised title. One assumes this has an impact on price.

Geert.

(Handbook of) EU private international law, 2nd ed. 2016, Chapter 5, Heading 5.1, Heading 5.5.

Reinhard Bork, Principles of Cross-Border Insolvency Law, Intersentia, 2017, ISBN 9781780684307, 290 pp., EUR 94.

The thesis of this book is that cross-border insolvency rules of all kinds (e.g. European Insolvency Regulation, UNCITRAL Model Law, ALI Principles for the NAFTA States, national laws such as Chapter 15 US Bankruptcy Code or Sch. 1 Cross-Border Insolvency Regulation 2006) are founded on, and can be traced back to, basic values and that they aim to pursue and enforce such standards. Furthermore, several principles can be identified, distinguished and sorted into three groups: conflict of laws principles (e.g. unity, universality, equality, mutual trust, cooperation and communication, subsidiarity, proportionality), procedural principles (e.g. efficiency, transparency, predictability, procedural justice, priority) and substantive principles (e.g. equal treatment of creditors, optimal realisation of the debtor’s assets, debtor protection, protection of trust (for secured creditors or contractual partners), social protection (for employees or tenants)). Using the principle-oriented approach, the book will have a significant impact for both deciding cases and shaping cross-border insolvency law. It offers both legislators and courts new substantive and methodological support in making decisions, for example where the treatment of secured creditors, support for foreign insolvency practitioners or even harmonisation of cross-border insolvency laws is at stake.

This book is a collection of papers presented at the 24th traditional conference Corporate Entities at the Market and European Dimensions. The conference was organized on 19-21 May 2016 in Portoroz, Slovenija, by the Institute for Commercial Law Maribor and the Faculty of Law of the University of Maribor. It was co-financed by the European Commission within the project Remedies concerning Enforcement of Foreign Judgements according to Brussels I Recast. The e-version is available for browse or download here. Many interesting topics of private international law are dealt with under the title in particular related to the implementation of the Brussels I bis Regulation. The list of papers includes:

A General Overview of Enforcement in Commercial and Civil Matters in Austria
Philipp Anzenberger

A General Overview of Enforcement in Commercial and Civil Matters in Lithuania
Darius Bolzanas & Egidija Tamosi?nien? & Dalia Vasarien?

Changed Circumstances in Slovene Case Law
Klemen Drnovsek

A General Overview of Enforcement in Commercial and Civil Matters in Italy
Andrea Giussani

Law Aspects of Servitization
Janja Hojnik

Removal of Exequatur in England and Wales
Wendy Kennett

Cross Border Service of Documents – Partical Aspects and Case Law
Urska Kezmah

Diputes regarding the use of distributable profits and ensuring a minimum dividend and balance shee-financial aspects of canceled resolutions d.d.
Marijan Kocbek & Saša Prelic

Subscribers Liabilities to Subcontractor Under Directive 2014/24/EU and ZJN-3
Vesna Kranjc

Certan Open Issues Regarding the Refusal of Enforcement Under the Brussels I Regulation in Slovenia
Jerca Kramberger Skerl

Owerview of the Croatian Enforcement System With Focus on the Remedies
Ivana Kunda

Selected Issues of Recognition and Enforcement of Foreign Judgments from the Prespective of EU Member States
Ji?i Valdhans & Tereza Kyselovská

Editing Working Relationships of Companies Directors (Managerial Staff)
Darja Sencur Pecek

The Order Problem of the Acquisition of Derivative rights in the Event of Realestate Owner Bankruptcy
Renato Vrencur

The Brussel Regulation Recast – Abolishing the Exequatur Maintaining the Exequatur Function?
Christian Wolf

Cross-border Legal Representation as Seen in a Case Study
Sascha Verovnik

The Centre of European Law at King’s College London is running a series of seminars on the meaning of Brexit and its potential impact on different areas of law. It considers the options for the new legal regime between the UK and the EU, taking into account the international legal framework.

On 26 January 2017 the topic will be Brexit and Private International Law. The Chair will be Professor Jonathan Harris QC.

The seminar will take place at King’s College London – Strand Campus at 6.30 p.m.

For registration and more information, see here.

Sarah Laval, Le tiers et le contrat – Étude de conflit de lois, Larcier, 2016, pp. 458, ISBN: 9782804491000, EUR 110.

En droit international privé, le principe d’autonomie désigne la possibilité pour les parties à un contrat international de choisir la loi applicable. Reconnu par une immense majorité d’États, de règlements et de conventions internationales, ce principe répond aux objectifs de prévisibilité, de souplesse et de sécurité propres au droit du commerce international. S’il satisfait les prévisions et les intérêts des parties, le principe d’autonomie risque cependant de heurter les prévisions des tiers intéressés au contrat. Les créanciers ou débiteurs des parties, leurs ayants cause, les titulaires de droits concurrents, se trouvent tributaires d’un choix auquel ils sont étrangers et qui risque de leur porter préjudice. La lecture des principaux instruments conventionnels et règlementaires relatifs aux solutions du conflit de lois en matière contractuelle témoigne d’une absence de prise en considération des intérêts des tiers au contrat. Pourtant, la multiplication des contentieux liés aux mécanismes tripartites, comme les cessions de créances, les groupes de contrats, ou encore les sûretés réelles et personnelles, révèle l’importance des intérêts des tiers et la nécessité corrélative de les intégrer dans les solutions du conflit de lois en matière contractuelle. C’est à cette problématique que la présente thèse se consacre. En s’appuyant sur les outils traditionnels du droit international privé, comme la distinction des règles de conflit de lois générale et spéciale, la qualification des questions de droit ou, encore, la méthode des lois de police, elle propose non seulement d’opérer une distinction entre les différents types de contrats selon la nature de leurs liens avec les tiers, mais encore, et plus essentiellement, de modifier les solutions du conflit de lois applicables aux contrats qui intéressent par nature les tiers en remettant en cause le principe d’autonomie. Pour les autres contrats, elle suggère d’adapter les solutions du conflit de lois par le recours à des correctifs.

Thank you Bob Wessels for alerting me to ADO Den Haag v United Vansen (of China). ADO Den Haag NV (the corporate vehicle of a Dutch Premier League club) domiciled at The Hague, sue United Vansen International Sports Co. Ltd, domiciled at Beijing, essentially for the latter to pay a deposit on the premium due for the shares it acquired in the club. Vansen did not appear.

First of all, were Vansen properly summoned in accordance with the Hague Service Abroad Convention (which both China and The Netherlands have ratified)? The court holds that it cannot yet decide that this has actually happened (relevant steps taken via the Dutch judicial authorities only recently having taken place) however it applies Article 15(3)’s provisions for extreme urgency: ‘Notwithstanding the provisions of the preceding paragraphs the judge may order, in case of urgency, any provisional or protective measures.‘

Next up: do the Dutch courts have jurisdiction? Given the defendant’s domicile outside of the EU and the non-applicability of any of Brussel I’s rules where domicile is irrelevant, the Court applied Dutch residual rules of private international law. These grant it jurisdiction essentially in respect of urgent proceedings of attachment.

Of more interest to this blog is the court’s consideration of applicable law, which the Court conducts with reference to Rome I. The share purchase agreement seemingly did not contain choice of law, either implicit or explicit: at 2.15, the court suffices with a mere observation of the absence of choice of law. None of the standard contracts of Article 4(1) Rome I applies [there is some discussion in scholarship whether share purchase is covered by Article 4(1)a’s ‘contract for the sale of goods’], hence the relevance of Article 4(2)’s ‘characteristic performance’ test. Here, the Court declared unequivocally (and most probably correctly) that the characteristic performance is the  transfer of the share premium. The habitual residence of the party required to carry out that performance is the relevant connecting factor. In casu therefore, Chinese law in principle is the applicable law.

However the Dutch court finally settles for Dutch law after all, employing Article 4(3)’s escape clause. It holds that all circumstances of the case indicate that Dutch law is more closely connected: at 2.15: the agreement originated in The Netherlands; the performance has to be carried in The Netherlands (transfer of the sums into a Dutch bank account), and the transfer of the premium will benefit a Dutch company. Although the judgment does not give much detail on the contract, its origins etc., it would seem that in finally opting for Dutch law, the court does make proper application of the rather strict conditions of Article 4(3).

A good illustration of Article 4’s waterfall /cascade.

Geert.

(Handbook of) European private international law, 2nd ed. 2016, Chapter 3, Heading 3.2.6.

This report has been prepared by Martina Mantovani, research fellow at the MPI Luxembourg.

On 1st and 2nd December 2016, the Academy of European Law (ERA) hosted, in Trier, the conference “Freezing Bank Accounts Across Europe (and Beyond)”, bringing together a wide range of academics and practitioners to discuss the new scenarios opened by the prospective implementation of the new European Account Preservation Order, which will apply from 18 January 2017.

This post provides an overview of the presentations and of the discussions on the issues raised.

LOOKING ACROSS EU BORDERS

Freezing of assets (by foreign parties) in Swiss banks – Prof. Dr. Daniel Staehelin provided valuable insights on the current situation in Switzerland. With its 276 banks, this country is still one the largest managers of offshore wealth, thus being an appealing target in the eyes of foreign creditors who seek to recover their monetary claims. Special attention was given to the procedural requirements for obtaining a Swiss freezing order and to the possible difficulties arising from the interaction with the bank secrecy regime. Pursuant to the 1889 Debt Enforcement and Bankruptcy Act, in fact, the claimant shall prove, inter alia, that the debtor is the client of a specific bank. In this respect, it is worth stressing that the relative weakening of the bank secrecy regime, brought along by the Treaties concluded by Switzerland over the last few years, solely concerns the requests coming from authorities of the contracting States for tax recovery claims. Conversely, in civil and commercial matters, banks can – and generally will – still invoke the professional secret against requests coming from private persons engaged in debt collection activities.

THE EUROPEAN ACCOUNT PRESERVATION ORDER (EAPO) 

Scope and procedure for obtaining an EAPO, including jurisdiction and service of documents – In this second presentation, Prof. Pietro Franzina led us through the procedural steps set forth by the EAPO Regulation for the granting of a European freezing order. These latter play, in fact, a pivotal role in the overall architecture of the EAPO Regulation, as its “added value” vis-à-vis other European instruments (namely, the Brussels I bis and the Maintenance Regulations) lies precisely in the harmonized procedural framework established therein. In addition to some common rules on jurisdiction and on the substantive requirements for issuing a account preservation order, the Regulation sets forth specific rules governing enforcement by national courts and enforcement authorities. The remedies available to the debtor and the appellate stage of the proceedings are, as well, specifically considered by the Regulation. The underlying intent is to sidestep – at least in theory – most of the practical difficulties arising out of the interaction with domestic procedural regimes, which are thus relegated to a minor gap-filling role.

Practical issues for banks operating in the Member States – The presentation by Sarah Garvey and Joseph Delhaye identified four major operational issues for the bank required to implement the order. At the outset, the identification of the assets which can be preserved through an EAPO may prove particularly challenging in the case of joint and nominee accounts. Since, pursuant to Article 30, these accounts may be preserved only to the extent permitted under the law of the Member State of enforcement, there will be significant discrepancies in the practices followed in the several Member States. Another operational difficulty arising out of the interplay between uniform and domestic regulation consists in the determination of the exempted amounts and of the legal regime governing the bank’s potential liability. Pursuant to, respectively, Article 31 and Article 26 of the EAPO Regulation, both shall in fact be determined under the national law of the Member State of enforcement. Again, these provisions will generate significant divergences from State to State. Last but not least, completing the form provided for by Annex IV may raise practical issues which find no express answer in the Regulation (eg. the treatment of pledged accounts, finding a balance between the ex-parte nature of the order and the duty of care and prompt information generally owed by banks to their clients). In light of the above, the banks of the participating States will likely be unable to develop a uniform approach to the EAPO.

What are the risks for claimants? – The position of the claimant vis-à-vis the EAPO has been analysed by Philippe-Emmanuel Partsch and Clara Mara-Marhuenda, who identified four major risks arising in connection with an EAPO application. Firstly, the claimant has to take into account the possibility of having to provide a security, if the court considers it appropriate in the circumstances of the case. Secondly, he may be held liable for any damage caused to the debtor by the Preservation Order due to his fault. Although, generally speaking, the burden of proof shall lie with the debtor, the claimant might have to actively prove the lack of fault on his part in order to reverse the presumption set out by Article 13 (2) of the EAPO Regulation. The third risk is connected with the ranking of the EAPO: as it has the same rank as an “equivalent national order” of the State of enforcement, other domestic measure may hypothetically have priority over the European freezing order, if so provided by national law. Finally, the claimant shall consider that the defendant may challenge the EAPO (Article 33), or oppose to its enforcement (Article 34). If the defendant is successful, the EAPO can be, respectively, revoked (or modified) and terminated (or limited).

WORKSHOP: Freezing monies in bank accounts across Europe – During this workshop, participants were confronted with a comprehensive “freezing of bank account scenario” devised by Prof. Gilles Cuniberti. The analysis of the case brought to light many uncertainties relating to the practical functioning of the EAPO Regulation. The proper interpretation of some concepts used – but not defined – by the Regulation, the interplay with the Service Regulation, compliance with the time-frame set forth by the EU legislator, the standard of due diligence required of the bank were perceived by the participants as the most problematic aspects of the EAPO Regulation.

ROUND TABLE (Partsch, Delhaye, Raffelsieper, Weil): Maintaining surprise vs protecting the debtor – As of January 2017, the EAPO Regulation will provide creditors with the possibility of obtaining an ex parte freezing order easily enforceable throughout the EU. This measure evidently purports to overcome the practical limitations arising out of the case Denilauer, where the ECJ held that the respect of the rights of the defence necessarily implies the prior hearing of the defendant. In this round-table, the speakers and participants brought attention to the downside of this case-law, insofar as it undermines the effectiveness of the protection of creditors’ interests. The discussion focused on the system of procedural safeguards set in place by the EAPO Regulation. The speakers agreed on the fact that the Regulation provides for an adequate balance between the interests all the parties involved, while limiting, at the same time, the risk of procedural abuses.

WORLDWIDE FREEZING ORDERS

US freezing orders in practice: a primer – In his presentation, Brandon O’Neil provided some useful insights on the system (or, rather, on the lack thereof) governing the attachment of assets in the US. The lack of a uniform Federal approach to the matter results into a piecemeal legal framework, where attachment of assets is generally seen as an extraordinary remedy whose legal regime differs from State to State. Although several “Model laws” have been proposed over the years, the State legislatures have been strenuously reluctant to give up their restrictive and specific national regimes.  As a result, obtaining a freezing order in the US may require the filing of multiple actions in several States. The speaker provided for positive examples of this legal diversification, by giving a brief account of some “domestic peculiarities” – ie Columbia’s ex parte procedure, Delaware’s business-friendly regime and Florida’s standard of the “fraudulent intents”. In the second part of the presentation, Mr. O’Neil  focused on the standards and procedure set forth by the law of the State of New York.

English freezing orders: the weapon of choice for claimants? – Ms. Sarah Garvey described the substantive and procedural requirements for the granting of English freezing orders, also known as Mareva injunctions. The speaker especially focused on the duty of full and frank disclosure owed by the applicant’s solicitors, which factually ensures the adequate protection of the defendant’s interests within the framework of an ex parte procedure. Some relatively recent trends of the English practice were as well investigated, such as the possibility of combining freezing injunctions with “search orders”, in order to identify and freeze the relevant assets in one go.  According to Ms. Garvey, English freezing injunctions may be an appealing alternative to the EAPO. They present, in fact, considerable “competitive advantages” over the European Instrument, namely: (i) their broader scope as to the kinds of assets covered by the measure; (ii) their potential worldwide reach; (iii) the swift and informal nature of the procedure (iv) the tough sanctions for non-compliance with the order.

ROUND TABLE (Hess, Franzina, Garvey, O’Neil): EAPO vs freezing orders – Which path to take? The discussion focused on the legal treatment reserved by the EAPO Regulation to the domiciliaries of non- Participating Member States, who cannot avail themselves of an EAPO but may nevertheless be affected by such a measure if their bank account is held in a Participating State. The concern has been voiced that the exercised of a legal prerogative of some Member States (the right of opting in/opting out) de facto results, in this case, in a discriminatory treatment of their domiciliaries, in particular when these latter apply for an EAPO as maintenance creditors. The speakers expressed diverging opinion on this point.

The concluding remarks were made by Prof. Gilles Cuniberti, who expressed cautious optimism as to the prospects of success of this new European instrument.

Andrea Lista, International Commercial Sales: The Sale of Goods on Shipment Terms, Routledge, 2017, ISBN: 9780415702829, pp. 528, GBP 220.

This book comprehensively examines the entire legal process of the international sale of goods, beginning with the creation of the contract and continuing through to either the fulfilment of the sale, or the termination of the contract. Every day goods are globally traded between sellers and buyers in different countries and different jurisdictions. The distances between the parties involved in such transactions, and the relative risks related to that, are a key issue in international commercial sales. Sales of goods carried by sea, thus, differ quite drastically from domestic sales; the goods will be normally shipped at a port very distant from the buyer, preventing his physical presence at the port of loading. Further, the goods will travel in the custody of a carrier, a party normally quite independent from either trader. Finally, transactions concluded on shipment terms are normally irreversible, in the sense that shipping the goods back to the seller represents an unlikely option for the buyer. Traders around the world very frequently choose English law to govern their contracts, with disputes to be resolved through London arbitration or litigation. The basis of that law is to be found in the English Sale of Goods Act 1979, and the book consequently also includes an examination of the fundamental principles of that Act, as well as considering use of the Vienna Convention on the International Sale of Goods.

This is a shameless plug for my new book. It is available for pre-order on the Oxford University Press website and on Amazon.com. I was fortunate enough to co-author this work with my friend and colleague Luke Sobota from Three Crowns.

This book is intended to be a modern update of Bin Cheng’s seminal book on general principles from 1953–identifying, summarizing and analyzing the core general principles of law and norms of international due process, with a particular focus on developments since Cheng’s writing. The aim is to collect and distill these principles and norms in a single volume as a practical resource for international law jurists, advocates, and scholars. The book includes a Foreward by Judge Stephen M. Schwebel.

We’ve been fortunate to receive some wonderful praise thus far. Judge Schwebel has called it “a signal contribution to the progressive development of international law, . . . [done] with scholarship, insight, and panache.” Pierre Marie Dupuy has deemed it a “most useful study on the place and role of general principles of law in contemporary international arbitration,” while Judge James Crawford expects it to become a “work that will benefit both scholars and practitioners.”

The Permanent Bureau of the Hague Conference on Private International Law seeks a temporary legal assistant to work in the areas of international family law and child protection. The vacancy is advertised here. 

Il Permanent Bureau della Conferenza dell’Aja di diritto internazionale privato intende assumere un collaboratore giuridico a tempo determinato che lavori nel settore della famiglia e della protezione dei minori. Maggiori dettagli a questo indirizzo.