Process agent: Difference between revisions
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*{{isdaprov|Process Agent}} - ISDA provision | *{{isdaprov|Process Agent}} - ISDA provision | ||
*[https://www.justice.gov.uk/courts/procedure-rules/civil/rules/part06 Part 6 of the Civil Procedure Rules, governing the service of process] | *[https://www.justice.gov.uk/courts/procedure-rules/civil/rules/part06 Part 6 of the Civil Procedure Rules, governing the service of process] | ||
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Revision as of 17:30, 1 May 2020
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Negotiation Anatomy™
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What is a process agent?
Process agent
/ˈprəʊsɛs ˈeɪʤᵊnt/ (n.)
An agent located in a jurisdiction who is appointed by a contracting counterparty outside that jurisdiction to accept service of legal proceedings filed against it in the courts of that jurisdiction, to discharge the procedural requirement that they are physically served within the jurisdiction.
For English law contracts the jurisdiction in question is that of “the courts of England and Wales” — there is no such thing as United Kingdom law — the rules of English civil court procedure[1] require process physically to be served within England or Wales (or, in theory, their adjacent territorial waters[2]). Service in Scotland — or its territorial waters — will not do. This means you can serve process on someone rowing a boat in the Bristol Channel, but not in Inverness, much less on someone escaping in rowing a boat to, for example, the Isle of Skye.
A contracting counterparty whom you cannot rely on being in England or Wales should you have to sue it — one who has no permanent place of business there — you might ask to appoint as its agent a company who reliably will be there, and who is prepared to receive process served upon the counterparty and pass it on to head office. That person is a “process agent”.
The best kind of process agent is an English-domiciled affiliate of the contracting entity who is happy to perform that role, as it generally will do it for free. But if you don’t have one, there are dedicated process agency businesses who will act as your process agent for, naturally enough, a suitably outrageous fee.
Who needs one?
Any counterparty who does not have a permanent place of business in England or Wales. Or their adjacent territorial waters. Process agents are standard in English law contracts with overseas counterparties.
How do I get a one?
Many corporate trust and agency businesses act as process agents, although they charge outrageously for the service. Law firms used to do it, but they charged even more, and even then complained they couldn’t make any money out of it.
If you have an affiliate, agent or investment manager or buddy in England or Wales, best ask them if they will accept service on your behalf.
It would make a great play
It would be kind of cool to set up a process agency business on a barge moored in the Bristol Channel, just to make service on that process agent as hard as is humanly possible, and potentially impossible if a great storm blew in from the Atlantic on the last day of the statute of limitations. Would make a great play. Actually, now you mention it - The ISDA Protocol.
Careful with the territorial waters
If your process agent is moored on a barge — say, off the coast of Berwick-upon-Tweed — then depending on the prevailing current, you may or may not be able to service process there.
A process agent in New York?
The New York rules of civil procedure are here. As you might expect, they seem complicated. CT Corporation seems to charge a lot for serving process — so we assume there is a reason for that.
See also
- Process Agent - ISDA provision
- Part 6 of the Civil Procedure Rules, governing the service of process
References
- ↑ Rule 6.11 of Part 6, details freaks.
- ↑ I find the idea of serving in territorial waters strangely fascinating. In the rules of English civil court procedure “jurisdiction” is defined as “unless the context requires otherwise, England and Wales and any part of the territorial waters of the United Kingdom adjoining England and Wales” so, therefore, those of the Her Majesty’s territorial waters which adjoin Scotland or Northern Ireland are out of bounds.