TRANSNATIONAL LITIGATION AND COMMERCIAL ARBITRATION An Analysis of American, European, and International Law Third Edition Joseph Lookofsky and Ketilbjørn Hertz JURIS DJØF Publishing Copenhagen Questions About This Publication For assistance with shipments, billing or other customer service matters, please call our Customer Services Department at: 1-631-350-2100 To obtain a copy of this book, call our Sales Department: 1-631-351-5430 Fax: 1-631-351-5712 Toll Free Order Line: 1-800-887-4064 (United States & Canada) See our webpage about this book: www.arbitrationlaw.com Copyright © 2011 by JurisNet, LLC __________________ All rights reserved. Printed in the United States of America JURIS ISBN: 978-1-933833-65-1 DJØF ISBN: 978-87-574-2038-8 Sold and distributed in Scandinavia by: DJØF Publishing A Company of the Association of Danish Lawyers and Economists 17 Lyngbyvej, P.O. Box 2702 - 2100 Copenhagen Denmark Email: [email protected] www.djoef-forlag.dk JurisNet, LLC 71 New Street Huntington, New York 11743 USA www.arbitrationlaw.com TABLE OF CONTENTS PREFACE to the Third Edition ............................................xi CHAPTER 1 SUBSTANCE AND PROCEDURE IN TRANSNATIONAL DISPUTES 1.1 Introduction ................................................................. 1 1.2 Themes and Cross-Currents in Transnational Litigation ..................................................................... 7 CHAPTER 2 EXTRATERRITORIAL JURISDICTION 2.1 Introduction ............................................................... 11 2.1.1 Jurisdiction to Adjudicate ......................................... 11 2.1.2 Bases of Jurisdiction: a Comparative Survey ........... 18 A. Territorial Jurisdiction Based on Domicile ............... 19 B. Specific Jurisdiction in Contract and Tort ................ 21 C. Jurisdiction by Consent ............................................. 24 D. Nationality-, Property- and Presence-Based Jurisdiction ................................................................ 25 2.2 Extraterritorial Jurisdiction within the European Union: The Brussels Regulation ............................... 31 2.2.1 Regulation Overview ................................................ 31 2.2.2 Jurisdiction in Contract Cases .................................. 38 A. Place of Performance ................................................ 38 Tessili v Dunlop (1976) ............................................ 42 Notes, Questions & Commentary ............................. 54 A. de Bloos v Bouyer (1976) .................................... 55 Notes, Questions & Commentary ............................. 62 Shenavai v Kreischer (1987) .................................... 63 Notes, Questions & Commentary ............................. 70 B. Jurisdictional Clauses: an Introduction to Article 23 ................................................................... 78 Salotti v RÜWA (1976) ............................................. 85 Notes, Questions & Commentary ............................. 94 Zelger v Salinitry (No. 1) (1980) ............................ 101 Notes, Questions & Commentary ...........................105 C. Ancillary Jurisdiction and the Lis Pendens Problem ................................................................... 106 D. Jurisdiction with respect to Consumer Contracts.................................................................. 117 2.2.3 Jurisdiction in Tort ..................................................120 Bier v Mines de Potasse (1976) ..............................121 Notes, Questions & Commentary ........................... 132 iii iv table OF CONTENTS Arcado v Haviland (1987) ...................................... 145 Notes, Questions & Commentary ...........................150 Réunion Européenne v Spliethoff’s (1998) ............ 153 Notes, Questions & Commentary ...........................165 2.2.4 Doing Business Abroad: an Introduction to Article 5(5) .............................................................. 167 A. de Bloos v Bouyer (1976) .................................. 171 Notes & Commentary .............................................176 Schotte v Parfums Rothschild (1987) ..................... 179 Notes, Questions & Commentary ...........................186 2.3 The Lugano Convention ......................................... 189 2.4 Jurisdiction Under English Law ............................. 191 2.4.1 Introduction .............................................................191 2.4.2 Jurisdiction in Contract Under English Law ............................................................192 Underweser Reederei v. Zapata Off-Shore (1969) ..................................................... 193 Notes, Questions & Commentary ...........................199 Brinkibon Ltd. v Stahag Stahl (1982) ..................... 201 Notes, Questions & Commentary ...........................206 Spiliada Maritime v Cansulex (1987) ..................... 207 Notes, Questions & Commentary ...........................216 Roneleigh Ltd. v MII Exports (1988) ..................... 217 Notes, Questions & Commentary ...........................222 2.5 Jurisdiction under American Law ........................... 224 2.5.1 Long-Arm; State & Federal Courts; Due Process ............................................................. 224 World-Wide Volkswagen v. Woodson (1980) ...................................................................... 236 Notes, Questions & Commentary ...........................244 Helicopteros Nacionales v. Hall (1984) .................. 245 Notes, Questions & Commentary ...........................252 2.5.2 Jurisdiction in Contract Cases ................................258 A. Supplementary Rules .............................................. 258 Burger King Corp. v. Rudzewicz (1985) ................ 259 Notes, Questions & Commentary ...........................269 Afram Export v. Metallurgiki Halyps (1985) ...................................................................... 272 Notes, Questions & Commentary ...........................276 B. Contract Jurisdiction Quasi in Rem ........................ 280 Majique Fashions v. Warwick (1979) ..................... 281 Notes, Questions & Commentary ...........................286 C. Forum Agreement ................................................... 288 table OF CONTENTS v M/S Bremen v. Zapata Off-Shore (1972) ............... 290 Notes, Questions & Commentary ........................... 299 Volkswagenwerk v. Klippan GmbH (1980) ........... 306 Notes, Questions & Commentary ........................... 312 2.5.3 Jurisdiction in Tort ..................................................314 Asahi Metal v. Superior Court of California (1987) ..................................................... 318 Notes, Questions & Commentary ........................... 326 2.5.4 Forum Non Conveniens, Lis Pendens and Antisuit Injunctions ................................................. 330 A. Forum Non Conveniens ..........................................330 Pain v. United Technologies (1980) ........................ 331 Notes, Questions & Commentary ........................... 341 In re. Union Carbide Disaster, Bhopal (1984) ...................................................................... 345 Notes, Questions & Commentary ...........................351 B. Lis Alibi Pendens .................................................... 353 Note re. Ingersoll Milling Machine Co. v. Granger 355 C. Antisuit Injunctions ................................................. 358 2.5.5 Extraterritorial Jurisdiction and the Corporate Veil ......................................................... 364 Bulova Watch v. K. Hattori & Co. (1986) .............. 370 Notes, Questions & Commentary ...........................381 2.6 Hague Convention on Choice-of-Court Agreements .............................................................384 CHAPTER 3 THE APPLICABLE LAW — IN CONTRACT AND TORT 3.1 General Introduction ............................................... 393 3.2 European Law ......................................................... 402 3.2.1 Contract Conflicts and the Rome I Regulation....... 402 A. Party Autonomy ...................................................... 407 ISS Machinery Services Ltd v Aeolian Shipping SA (2001)................................................. 409 Notes, Questions & Commentary ........................... 418 Egon Oldendorff v Libera Corporation (1995) ...................................................................... 420 Notes, Questions & Commentary ...........................433 B. Supplementary Rules in the Absence of Choice ...................................................................... 435 ICF v MIC Operations BV (2009) .......................... 441 Notes, Questions & Commentary ........................... 465 C. Mandatory Rules .....................................................469 vi table OF CONTENTS Transocean Drilling Ltd UK v Arbejdsministeriet (2000) ....................................... 473 Notes & Commentary .............................................479 3.2.2 Sales Law Conflicts and Harmonization ................ 481 A. Introduction .............................................................481 B. 1955 Hague Convention ......................................... 482 C. 1980 Vienna Convention (CISG) ........................... 485 D. 1986 Hague Convention ......................................... 487 3.2.3 Tort Conflicts under European Law........................ 488 A. Non-Contractual Obligations and the Rome II Regulation ..........................................