The Bar Council has warned that the UK economy and London’s position as the leading centre for dispute resolution will suffer if Brexit negotiations do not ensure that UK court judgments are enforceable in EU Member States, once Britain leaves the European Union.
In written evidence to the Commons Justice Select Committee, published today, the Bar Council said:
“In a globalised world, it is crucial that the judgments of one state are enforced by the courts of another.
“It is critical that UK citizens, businesses, institutions and the UK Government retain the right to have judgments which they have obtained in the UK courts efficiently enforced, and to have the jurisdiction of the UK courts recognised, throughout the EU.
“This is also essential in order to retain our position as the leading dispute resolution centre in the world, with the important economic benefits which this brings.
“These mechanisms are vital for the healthy functioning of the UK economy in general and the UK legal sector in particular.”
English law is the most commonly used law in international business and dispute resolution and is the main choice of law for commercial contracts, but the Bar Council has cited anecdotal evidence that some international parties may already be choosing not to use English jurisdiction clauses.
The Bar Council evidence said:
“Anecdotally, the Bar Council has heard of a number of cases where parties are being advised not to choose English jurisdiction clauses in their contracts because of the uncertainty surrounding the jurisdiction and judgments regime.
“Much international dispute resolution work comes to English lawyers because the parties to a dispute have chosen to have their dispute resolved in the English courts. If jurisdiction clauses designating the English courts are not effectively respected in the EU, this will make such clauses considerably less popular.”
