Brexit, Civil Justice and Private International Law (II): What will happen with the applicable law?

Continuing with the saga of “what will happen with”, today we will analyse the issues regarding applicable law in contractual and non-contractual matter established in the European Commission updated “Notice to Stakeholders on the Withdrawal of the United Kindgom and EU Rules in the Field of Civil Justice and Private International Law” (the “Notice”).

  • Contractual obligations.
    • Rules on applicable law applicable in the UK. Rome I Regulation will apply in the United Kingdom in respect of contracts concluded before the end of the transition period (Article 66(a) of the Withdrawal Agreement).
    • Rules on applicable law applicable in the EU. Rome II Regulation applies. This regulation provides for universal application.

  • Non-contractual obligations.
    • Rules on applicable law applicable in the UK. Rome II Regulation is to apply in the UK in matters that give rise to damage when such events occurred before the end of the transition period.
    • Rules on applicable law applicable in the EU. Rome II Regulation applies.

When negotiating a contract parties should carefully think the governing law clauses. Even though EU is establishing some rules regarding the applicable law, we must bear in mind that UK courts are independent and may decide differently. Parties must be aware of the existence of uncertainties in relation with the applicable law at the moment they choose English law and/or jurisdiction in their contract or fail to choose it.

Find the Notice on the following link: https://n9.cl/ars4

JG

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