Rome II: Difference between revisions

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If you've ever despaired at the pernicketiness of {{tag|Governing Law}} clauses such as this:
#redirect[[jurisdiction]]
 
{{box|This agreement and any [[non-contractual obligation]]s [[arising out of or in connection with it]] shall be governed and construed [[in accordance with]] by English law.}}
 
Then you have the [[Rome II]] {{tag|EU Regulation}} ({{eureg|864|2007|EC}} to blame. It was published on 31 July 2007 and applies to all {{tag|EU}} Member States (except  {{tag|Denmark}}) . It aims to harmonise the conflict of laws rules applied by Member States when dealing with disputes involving non-contractual obligations and means that one rule for choice of law in such disputes applies across all Member States.
===[[Non-contractual obligations]]===
In this context “[[non-contractual obligations]]” includes claims based on [[tort]] such as [[negligence]], breach of [[competition law]] and breach of [[statutory duty]]. But, brilliantly, it does not apply to non-contractual obligations arising under [[bills of exchange]], [[cheque]]s and [[promissory note]]s and other [[negotiable instrument]]s which arise out of their negotiable character.
 
Rome II doesn't apply to company law or defamation, either. Though it's kind of hard to see how you could have a contractual obligation to defame someone.
 
But point to note here: the main thing is to ensure any [[concurrent liability|claims]] in {{tag|contract}} and [[tort]] are governed by the same forum. Of most interest in cross-border cases where parties are in different jurisdictions and that wouldn't follow as a matter of course. and even there, frankly, a concurrent claim in {{tag|tort}} would only be relevant in most cases to [[concurrent liability|builders]].
 
Of course, the sensible thing would be to expressly exclude tortious claims under the {{tag|contract}}. But for those not prescient enough to do that, there's always this [[magic words|magic]] incantation.
 
===Jurisdiction: you choose!===
Parties can agree to submit non-contractual obligations to the law of their choice. Previously English courts haven't been sure as to whether this is {{tag|cricket}}. Rome II confirms that it is:
*Where the agreement was made after the event giving rise to the damage; or 
*Where all parties are pursuing a commercial activity, if freely negotiated ''before'' the event giving rise to the damage occurred.
 
===See also===
*[[Contractual negligence]]
*[[Concurrent liability]]
*[[Negligence, fraud or wilful default]]

Latest revision as of 10:40, 12 August 2024

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