International business law: jurisdiction and applicable
law
1. Explanation terms
Jurisdiction: which judge will be chosen
Applicable law: which laws from which country
Land bepaalt de rechter maar niet het recht dat wordt toegepast
2. Example: Jane, a German citizen, lives in Rotterdam. She works
for a company in Munich
It’s a labour contract: we don’t have more information to what
law is applicable in the contract.
There is no prorogation clause/jurisdiction clause
Explain: did you make your choice already?
Explain: er is geen extra info over de rechter dus geen
prorogation clause
2 things for jurisdiction
= Is the judge of Munich chosen of the judge of Rotterdam?
Jane suing BMW
o Jane has the option to sue BMW either in the
Netherlands or in Germany -> article 21 Brussels
Explanation: Jane mag aanklagen zowel in Nederland als
in Duitsland. Ze werkt gewoontelijk in Duitsland maar is
gedomicileerd in Nederland dus ze heeft de keuze
o She could argue: "Although BMW is not located in
Germany, I perform my work for them in Germany, and
therefore I will sue them there.” – Article .. Brussels
BMW suing Jane
o If BMW decides to sue Jane, they can only file the
lawsuit in the location where Jane is domiciled, which is
Rotterdam - Article 22 Brussels
, Applicable law
The German law will be applicable unless stated otherwise in
the contract. If the Dutch law is better for the employee, the
Dutch law will be applied. Rome I Article 8 – individual
employment contract.
Explanation: Is the Dutch law better for Jane -> the Dutch law
will be chosen instead of the German law
3. Example: Company XYZ is a french adit company. It audits the
bookkeeping of a Spanish company
It’s a service contract -> deliverance of services
There is no prorogation clause for juridiction and applicable
law
Explanation: otherwise exerice is done
Jurisdiction
Article 5 – Brussels.
If the Spanish client is suing the French audit company they
need to sue in Spain because the services are provided in
Spain.
If the French company is suing the Spanish company they
need to sue in Spain because the services are provided in
Spain.
Uitleg: Services worden aangeklaagd in spanje omdat de
services in spanje zijn
Uitleg: alleen bij personen ‘als de ene law beter uitkomt dan
de andere’
Applicable law
Article 4 (b) – Rome
The French company is delivering services in Spain. The
Spanish judge will need to apply French law because the audit
company is based in France.
Explanation: France law in spain with a spain judge
law
1. Explanation terms
Jurisdiction: which judge will be chosen
Applicable law: which laws from which country
Land bepaalt de rechter maar niet het recht dat wordt toegepast
2. Example: Jane, a German citizen, lives in Rotterdam. She works
for a company in Munich
It’s a labour contract: we don’t have more information to what
law is applicable in the contract.
There is no prorogation clause/jurisdiction clause
Explain: did you make your choice already?
Explain: er is geen extra info over de rechter dus geen
prorogation clause
2 things for jurisdiction
= Is the judge of Munich chosen of the judge of Rotterdam?
Jane suing BMW
o Jane has the option to sue BMW either in the
Netherlands or in Germany -> article 21 Brussels
Explanation: Jane mag aanklagen zowel in Nederland als
in Duitsland. Ze werkt gewoontelijk in Duitsland maar is
gedomicileerd in Nederland dus ze heeft de keuze
o She could argue: "Although BMW is not located in
Germany, I perform my work for them in Germany, and
therefore I will sue them there.” – Article .. Brussels
BMW suing Jane
o If BMW decides to sue Jane, they can only file the
lawsuit in the location where Jane is domiciled, which is
Rotterdam - Article 22 Brussels
, Applicable law
The German law will be applicable unless stated otherwise in
the contract. If the Dutch law is better for the employee, the
Dutch law will be applied. Rome I Article 8 – individual
employment contract.
Explanation: Is the Dutch law better for Jane -> the Dutch law
will be chosen instead of the German law
3. Example: Company XYZ is a french adit company. It audits the
bookkeeping of a Spanish company
It’s a service contract -> deliverance of services
There is no prorogation clause for juridiction and applicable
law
Explanation: otherwise exerice is done
Jurisdiction
Article 5 – Brussels.
If the Spanish client is suing the French audit company they
need to sue in Spain because the services are provided in
Spain.
If the French company is suing the Spanish company they
need to sue in Spain because the services are provided in
Spain.
Uitleg: Services worden aangeklaagd in spanje omdat de
services in spanje zijn
Uitleg: alleen bij personen ‘als de ene law beter uitkomt dan
de andere’
Applicable law
Article 4 (b) – Rome
The French company is delivering services in Spain. The
Spanish judge will need to apply French law because the audit
company is based in France.
Explanation: France law in spain with a spain judge
