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commission aims at italian torpedo December 14, 2010

Posted by Bradley in : dispute resolution , trackback

The Commission has announced a number of proposals to reform civil justice, including this significant one:

Bringing legal certainty to choice of court agreements between companies: In business-to-business relations, companies often agree to settle all disputes in one particular court. However, litigation tactics have led to a situation where the validity of such choice of court agreements is challenged in a court in another EU Member State in order to delay the settlement of the dispute – a practice sometimes referred to as “Italian torpedo”. The Commission proposed today measures to end such abusive tactics by ensuring that the court chosen in the choice of court agreement is always first to determine whether the agreement is valid or not.

Comments»

1. John Flood - December 17, 2010

Jan Paulsson gave a talk on this at Miami during the time I was visiting. I believe I recall he said this could affect arbitrations also.