Flaminia Manghina 2019-2020 International Commercial Litigation Prof. Gian Paolo Romano Assistant: Vito Bumbaca University of Geneva Academic year 2019-2020 Flaminia Manghina 1 Flaminia Manghina 2019-2020 PART 0 – GENERAL INFORMATION ............................................................................................. 7 1. HUMAN ACTIVITY ACROSS BORDERS IS ON THE RISE ........................................................................... 7 2. NUMBER OF CROSS-BORDER RELATIONSHIPS IS ON THE RISE .............................................................. 7 3. FOCUS ON PRIVATE LAW DISPUTES THAT MAY ARISE FROM THOSE CROSS-BORDER RELATIONSHIPS . 7 4. DISPUTES BETWEEN PRIVATE PARTIES (INDIVIDUAL/ENTITIES)........................................................... 8 5. DISPUTES ARISING OUT OF CROSS-BORDER RELATIONSHIPS ................................................................ 8 6. DISPUTES ARISING OUT OF COMMERCIAL RELATIONSHIPS .................................................................. 8 7. DISPUTES BROUGHT BEFORE STATE COURTS ....................................................................................... 8 PART 1 – THEORETICAL BACKGROUND .................................................................................... 9 PART 1.1: WHAT IS A PRIVATE LAW DISPUTE? ....................................................................... 9 1. PRIVATE PERSON .................................................................................................................................. 9 2. STATE / COUNTRY ................................................................................................................................ 9 3. TWO PRIVATE PERSONS ........................................................................................................................ 9 4.BENEFIT ................................................................................................................................................. 9 5. INCOMPATIBILITY ............................................................................................................................... 10 6. SUBJECT-MATTER OF COMPETING CLAIMS ......................................................................................... 10 PART 1.2 HOW TO AVERT OR SETTLE A PRIVATE LAW DISPUTE? (DOMESTIC CONTEXT) ........................................................................................................................................... 11 1. PRIVATE LAW IS ABOUT ...................................................................................................................... 11 2. LEGITIMATE CLAIM ............................................................................................................................ 11 3. PRIVATE LAW RULES .......................................................................................................................... 12 4. LEGISLATIVE ASSEMBLIES IN DEMOCRATIC COUNTRIES .................................................................... 12 5. COURTS ............................................................................................................................................... 13 6. ENFORCEMENT AGENCIES .................................................................................................................. 13 7. RESPONSIBILITIES OF STATE IN PRIVATE LAW MATTERS ................................................................... 13 8. SIGNIFICANCE OF ‘DISAGREEMENT’ IN LEGAL PROCESS .................................................................... 14 PART 1.3: WHAT IS A CROSS-BORDER DISPUTE? .................................................................. 19 1. WHAT IT IS: ......................................................................................................................................... 19 PART 1.4: THE CHALLENGES OF A CROSS-BORDER DISPUTE? ........................................ 20 1.STATE A AND STATE B ARE SOVEREIGN AND INDEPENDENT IN THEIR INTERNAL AFFAIRS: .............. 20 2. IF STATE A AND STATE B MAKE COMPETING CLAIMS: ...................................................................... 20 3. TWO LEVELS OF ANALYSIS: ................................................................................................................ 21 4. DIGRESSION: PRIVATE INTERNATIONAL LAW AND PUBLIC INTERNATIONAL LAW: ........................... 22 5. THE ‘CLOSE’ OR ‘CLOSEST RELATIONSHIP’ PRINCIPLE OR TEST : ....................................................... 23 6. FOUR CASES-STUDY:........................................................................................................................... 26 PART 1.5: HOW TO SETTLE A CROSS-BORDER DISPUTE ? ................................................. 29 1. STATE A AND STATE B OUGHT TO AVOID: ......................................................................................... 29 2. CASE STUDY 2 (NEILSON): WHAT IF ................................................................................................... 30 3. STATE A AND STATE B ARE INTER-DEPENDENT: ............................................................................... 31 4. FOUR STEPS: ....................................................................................................................................... 32 2 Flaminia Manghina 2019-2020 5. STEP 1: ALLOCATING INTERNATIONAL JURISDICTION ...................................................................... 33 6. STEP 2: COORDINATING EXERCISE OF JURISDICTION ........................................................................ 35 7. STEP 3: DETERMINING LAW APPLICABLE .......................................................................................... 39 8. STEP 4: MUTUAL RECOGNITION (AND ENFORCEMENT) ...................................................................... 43 9. MODEL 1 (MANDATORY OR QUASI-MANDATORY RECOGNITION) TO STEP 4 (MUTUAL RECOGNITION AND ENFORCEMENT ).............................................................................................................................. 45 10. MODEL 2 (COLLABORATIVE JUSTICE) TO STEP 4 (MUTUAL RECOGNITION AND ENFORCEMENT) ... 47 11. MODEL 3 (HIGHER COURT SETTLING CONFLICT OF JUDGEMENTS) TO STEP 4 (MUTUAL RECOGNITION AND ENFORCEMENT) ....................................................................................................... 49 12. MODEL 4 (INTER-COUNTRY TRIBUNALS) TO STEP 4 (MUTUAL RECOGNITION AND ENFORCEMENT)51 13. OBLIGATION BY EU TO EMBRACE ONE OF 4 MODELS ...................................................................... 56 14. HAS THE ECTHR A ROLE TO PLAY? ................................................................................................ 57 15. CAN THE ICJ RESOLVE A CONFLICT BETWEEN STATES ON HOW TO SOLVE A CROSS-BORDER PRIVATE DISPUTE? .................................................................................................................................. 58 PART 1.6: RELATIONSHIP TO THE PROCEDURE ................................................................... 59 1. PARTIES TO THE DISPUTE: ‘LITIGANTS’ – PLAINTIFF .......................................................................... 59 2. ‘CLASS ACTION’ (ACCORDING TO COUNTRIES / LITIGANTS / JUDGES) ............................................... 60 3. PARTIES TO THE DISPUTE (‘LITIGANTS’) – DEFENDANT: .................................................................... 62 4. JUDGE : ............................................................................................................................................... 63 PART 1.7: RELEVANT SOURCES .................................................................................................. 66 1. EUROPEAN INSTRUMENTS : CIVIL/COMMERCIAL MATTERS ............................................................... 66 2. EUROPEAN INSTRUMENTS : FAMILY LAW .......................................................................................... 67 3. EUROPEAN INSTRUMENTS : PROCEDURE............................................................................................ 67 4. EUROPEAN CODE OF PRIVATE INTERNATIONAL LAW (?) .................................................................. 68 5. MULTILATERAL INSTRUMENTS .......................................................................................................... 69 6. REGIONAL AGREEMENTS ................................................................................................................... 69 7. BILATERAL TREATIES: THREE MAIN CATEGORIES ............................................................................. 69 8.NATIONAL (DOMESTIC) LEGISLATION ................................................................................................. 70 PART 2 – JURISDICTION ................................................................................................................. 71 PART 2.1: STRUCTURE OF JURISDICTION RULE ................................................................... 71 1. TOUCHSTONE: JURISDICTIONAL CONNECTING FACTOR ..................................................................... 71 2. INTERNATIONAL JURISDICTION VS LOCAL JURISDICTION .................................................................. 71 PART 2.2: BRUSSELS 1 REGULATION ......................................................................................... 72 1. HISTORY OF BRUSSELS 1 CONV./REG.: KEY FACTS ........................................................................... 72 2. BRUSSELS IA REGULATION: THE BASICS ..........................................................................................