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DETERMINING THE PLACE OF PERFORMANCE UNDER ARTICLE 7(1) OF THE BRUSSELS I RECAST

Published online by Cambridge University Press:  28 April 2021

Arthur Poon
Affiliation:
University of Hong Kong, askpoon@connect.hku.hk.
Corresponding
E-mail address:

Abstract

This article calls for a reassessment of the methodology in determining the place of contractual performance under Article 7(1) of the Brussels I Regulation Recast. The first part of the article deals with Article 7(1)(a). It argues that in light of the adoption of autonomous linking factors under Article 7(1)(b), more types of contracts presently not covered within the ambits of Article 7(1)(b) should centralise jurisdiction at the places of performance of their characteristic obligations. The second part of the article considers the way Article 7(1) operates when there are multiple places of performance under the contract. The test devised by the Court of Justice of the European Union in this regard is not only difficult to apply, but the application of the test also often does not guarantee a close connection between the claim and the court taking jurisdiction. This article argues that when a claim is made in respect of a contractual obligation to be performed in more than one Member State, Article 4 should be applied instead of Article 7(1).

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Copyright
Copyright © The Author(s), 2021. Published by Cambridge University Press for the British Institute of International and Comparative Law

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Footnotes

The author would like to thank Dr. Pippa Rogerson for her comments on the first draft of this article, as well as the ICLQ editorial team for their feedback and revisions.

References

1 [1999] 1 AC 119, 131–133.

2 Reg (EU) No 1215/2012 of the European Parliament and of the Council of 12 December 2012 on jurisdiction and the recognition and enforcement of judgments in civil and commercial matters [2012] OJ L351/1.

3 Recast recital 4.

4 Recast recitals 15 and 16.

5 For the principle's application in the context of Recast art 7(2), see Marinari v Lloyds Bank Plc [1996] QB 217 [13].

6 Shearson Lehman Hutton Inc. v TVB Treuhandgesellschaft für Vermögensverwaltung und Beteiligungen mbH [1993] I.L.Pr. 199 [17].

7 Recast recital 21.

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11 Case C-12/76 Industrie Tessili Italiana Como v Dunlop AG, 1976 E.C.R 1473.

12 Case 14/76 Ets. A. de Bloos, S.P.R.L. v. Société en commandite par actions Bouyer, 1976 E.C.R. 1497 [11].

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18 GIE Groupe (n 17) [46].

19 TK Graziano, ‘Jurisdiction under Article 7 No. 1 of the Recast Brussels I Regulation: Disconnecting the Procedural Place of Performance from Its Counterpart in Substantive Law. An Analysis of the Case Law of the ECJ and Proposals De Lege Lata and De Lege Ferenda’ [2015] YPIL vol XVI 167, 180.

20 [1999] I.L.Pr. 336.

21 ibid [6].

ibid

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23 GIE Groupe (n 17), Opinion of AG Ruiz-Jarabo Colomer, para 95.

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25 ibid [49]–[53].

ibid

26 Case C-533/07 Falco Privatstiftung and another v Weller-Lindhorst [2009] ECR I-3327 [51]; Grušić, U, ‘Jurisdiction in Complex Contracts under the Brussels I Regulation’ (2011) 7 JPIL 321, 322Google Scholar; cf TC Hartley, Civil Jurisdiction and Judgments in Europe: The Brussels I Regulation, the Lugano Convention, and the Hague Choice of Court Convention (Oxford University Press 2017) para 8.68.

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33 Car Trim (n 24) [60].

34 Case C-249/16 Kareda v Benkö ECLI:EU:C:2017:472.

35 ibid [44].

ibid

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37 Case C-106/95 MSG v Les Gravières Rhénanes Sàrl [1997] ECR I-911.

38 ibid [33].

ibid

39 MSG (n 37), Opinion of AG Tesauro, para 9.

40 U Magnus and P Mankowski, Brussels I Bis Regulation: Commentary (Otto Schmidt 2016) 164.

41 MSG (n 37), Opinion of AG Tesauro, para 31.

42 P Rogerson, ‘Private International Law – Jurisdiction’ (2010) 69 CLJ 452, 454.

43 Art 7(1)(c) provides that if art 7(1)(b) does not apply, art 7(1)(a) would be applied.

44 ibid.

ibid

45 K Takahashi, ‘Jurisdiction in Matters Relating to Contract: Article 5(1) of the Brussels Convention and Regulation’ ELR 27.1/6 (2002): 530, 545.

46 Hill (n 27) 601–3.

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48 [1993] I.L.Pr. 778.

49 Case C-125/92 Mulox IBC Ltd v Hendrick Geels [1993] ECR I-4075 [11].

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51 Case C-196/15 Granarolo SpA v Ambrosi Emmi France SA, ECLI:EU:C:2016:559.

52 Recast art 62.

53 Grušić (n 26) 340.

54 Samcrete v Land Rover [2001] EWCA Civ 2019 [38].

55 M Giuliano and P Lagarde, ‘Report on the Convention on the Law Applicable to Contractual Obligations’ [1980] OJ C282/20.

56 Hartley (n 26) para 8.61.

57 Custom Made (n 28), Opinion of AG Herr Carl Otto Lenz, para 63.

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62 ibid [15].

ibid

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65 Collins (n 14) para 32–080.

66 Council Document 13035/06 ADD 4 (22 September 2006) Annex A.

67 Giuliano-Lagarde Report (n 55) 19–20.

68 Case C-429/97 Leathertex Division Sintetici Spa v Bodetex BVBA [1999] ECR I-06747.

69 Case C-266/85 Shenavai v Kreischer [1987] ECR I-00239.

70 GIE Groupe (n 17) [26].

71 Union Transport Plc v Continental Lines S.A. and Anor [1992] 1 WLR 15, 23B-C.

72 Leathertex (n 68), Opinion of AG Léger, para 31.

73 Grušić (n 26) 338.

74 Fentiman (n 64) para 9.51; cf Grušić (n 26) 338.

75 Grušić (n 26) 322; Dickinson and Lein (n 15) 151–2.

76 Case C-34/82 Martin Peters Bauunternehmung GmbH v. Zuid Nederlandse Aannemers Vereniging [1983] ECR 987 [17].

77 Leathertex (n 68) [41].

78 Rogerson, P, ‘Plus ça Change? Article 5(1) of the Regulation on Jurisdiction and the Recognition and Enforcement of Judgments’ (2000) 3 CYELS 383, 402Google Scholar.

79 Leathertex (n 68) [38].

80 Case C-386/05 Color Drack v Lexx International Verbtriebs [2007] ECR I-03699.

81 Grušić (n 26) 338–9; Harris (n 58) 525; Magnus and Mankowski (n 40) 179.

82 Grušić (n 26) 338; Magnus and Mankowski (n 40) 183.

83 Color Drack (n 80) [41].

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86 Except for judgments involving subject matters covered in Recast art 45(1)(e).

87 Recast art 45(3).

88 See, in the context of validity and effect of jurisdiction agreements, Gothaer Allgemeine Versicherung AG and others v Samskip GmbH [2013] Q.B. 548.

89 Color Drack (n 80), Opinion of AG Bot, para 125.

90 Color Drack (n 80) [30].

91 Color Drack (n 80), Opinion of AG Bot, para 128.

92 See for example, Falco Privatstiftung (n 26) [37].

93 Color Drack (n 80) [44].

94 Harris (n 58) 526.

95 P Jenard, ‘Report on the Convention on Jurisdiction and the Enforcement of Judgments in Civil and Commercial Matters’ [1979] OJ C59/18.

96 Case C-204/98 Rehder v Air Baltic Corp [2009] ECR I-6073.

97 ibid [44].

ibid

98 ibid [45].

ibid

99 Color Drack (n 80) [31], [43]–[44].

100 Rehder (n 96) [42].

101 Grušić (n 26) 340.

102 Case C-19/09 Wood Floor Solutions Andreas Domberger GmbH v Silva Trade SA [2010] ECR I-2121.

103 ibid [36].

ibid

104 ibid [40].

ibid

105 Wood Floor (n 102), Opinion of AG Trstenjak, para 84.

106 ibid.

ibid

107 [1991] I.L.Pr 361 [13].

108 Custom Made (n 28) [33].

109 Wood Floor (n 102) [42].

110 Magnus and Mankowski (n 40) 189.

111 Falco (n 26) [57].

112 Besix (n 10) [29] Emphasis added by the Author; Hartley (n 26) para 8.70.

113 Besix (n 10), Opinion of AG Siegbert Alber, para 61.

114 Wood Floor (n 102), Opinion of AG Trstenjak, para 88.

115 Harris (n 58) 527.

116 Wood Floor (n 102), Opinion of AG Trstenjak, para 78.

117 ibid, para 79.

ibid

118 Magnus and Mankowski (n 40) 179.

119 Wood Floor (n 102), Opinion of AG Trstenjak, para 61, fn 46.

120 This is an example adapted from Magnus and Mankowski (n 40) 178.

121 ibid 177.

ibid

122 ibid 186.

ibid

123 eg Magnus and Mankowski (n 40) 114 (‘The mere existence of Art. 2 should not lead to the preponderance of a restrictive interpretation’); Dickinson and Lein (n 15) 140 (‘Art 7 is clearly a provision in its own right that does not have to be interpreted more strictly or more leniently than other provisions’).

124 See for example XL Insurance SE v AXA [2015] 2 C.L.C. 983 [13].

125 P Schlosser, ‘Report on the Convention on the Association of the Kingdom of Denmark, Ireland and the United Kingdom of Great Britain and Northern Ireland to the Convention on Jurisdiction and the Enforcement of Judgments in Civil and Commercial Matters and to the Protocol on its Interpretation by the Court of Justice’ [1979] O.J. C59/97.

126 Case C-406/92 The Tatry [1994] ECR I-5460 [52].

127 Wood Floor (n 102), Opinion of AG Trstenjak, para 89.

128 [2015] I.L.Pr. 8.

129 ibid [29].

ibid

130 ibid [52].

ibid

131 ibid [53].

ibid

132 ibid [53].

ibid

133 ibid [53].

ibid

134 Fawcett (n 8) 111.

135 [2006] I.L.Pr. 10.

136 Mora Shipping (n 133) [21].

137 Canyon (n 128) [54].

138 Color Drack (n 80), Opinion of AG Bot, para 115, fn 30.

139 Wood Floor (n 102), Opinion of AG Trstenjak, para 90.

140 Besix (n 10) [34].

141 ibid [32], [34], [55].

ibid

142 ibid [34].

ibid

143 ibid [26].

ibid

144 ibid [34].

ibid

145 ibid [48].

ibid

146 Beaumont, PR, ‘The Brussels Convention Becomes a Regulation: Implications for Legal Basis, External Competence and Contract Jurisdiction’ in Essays in Honour of Sir Peter North (Oxford University Press 2002) 17Google Scholar.

147 ibid 19.

ibid

148 Fawcett (n 8) 9.

149 Magnus and Mankowski (n 40) 186.

150 Hill, J, ‘Jurisdiction in Civil and Commercial Matters: Is There a Third Way?’ (2001) 54 CLP 439, 447Google Scholar.

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