The impact of Brexit on multi-jurisdictional proceedings

The end of the Brexit transition has brought significant changes to the framework for disputes between parties in the UK and parties in the EU, with effect from 1 January 2021.  See our article summarising the current position.

These changes have reduced the level of certainty in the way that jurisdiction clauses in favour of the English courts will be recognised across the EU, increasing the risk of parallel civil proceedings being run in the UK and the EU. 

In particular, the Brussels Recast Regulation, which provides a framework for the consistent recognition of jurisdiction clauses across the EU, no longer applies in the UK to proceedings commenced from 1 January 2021.  As a result, non-exclusive and asymmetrical clauses will only be recognised by the courts of an EU member state if local law provides for this.  Exclusive jurisdiction clauses will continue to be recognised under the Hague Convention, to which the UK has now acceded in its own right, although there remains some uncertainty as to whether jurisdiction clauses in agreements pre-dating 2021 will be deemed to fall within Hague. 

The UK has also applied to re-accede to the Lugano Convention, which would provide some additional certainty in the mutual recognition of non-exclusive jurisdiction clauses.  However, this would require the agreement of all existing members, including the EU, and it is currently unclear whether, and if so when, the UK might rejoin Lugano.

See our parallel proceedings microsite for further insight into the issues that arise when an incident leads to multiple legal proceedings and/or enforcement actions.