Jurisdiction EU Standard

General Rules

The Brussels Convention was replaced by regulation 44/2001, the Brussels Regulation. This dealt with recognition and enforcement of judgements in claims with  an international element that came within the scope within EU member states. This was replaced by regulation 1215/2012 described as the Brussels I Regulation (recast).

The Brussels Regulation sets out in which states a person may or must be sued and which state has jurisdiction over particular types of proceedings and disputes.

If a person is domiciled (habitual residence) in a particular EU state, he may generally be sued in that State.  The relevant time is when the claim is issued.

If one of the exceptional provisions does not apply, the domicile of the defendant is critical.  If the defendant is domiciled in an EU state, the Court may assume jurisdiction under the EU rules.  Otherwise, common law rules apply.

Special Rules

The defendant may be sued other than in his Member State if the case falls within one or more of the exceptions.  In each case, there must be a particular close connection with the other country in which litigation is brought.  Where one of the grounds applies, proceedings may be issued directly against the defendant without court permission.

The court of a Member State may acquire jurisdiction if the defendant enters an appearance in response to proceedings and does contest the jurisdiction.  If the defendant enters an appearance to challenge jurisdiction, the court may have no jurisdiction unless the court has exclusive jurisdiction by reason of the type of dispute concerned, e.g., a property dispute.

Scope of Brussels Regulation

The Brussels 1 Regulation applies to disputes between a claimant domiciled in one EU state and a defendant domiciled in another EU state. The Regulation may apply even when parties are domiciled within the same state. If there is an international element the provisions may apply to give the jurisdiction to the courts of another EU state.

The rules under Brussels 1 Regulation are mandatory in many cases. There is no discretion to stay proceedings on the basis that proceedings are pending in another EU state, contrary to the Regulation.

Where the defendant is not domiciled in an EU state, domestic conflict of laws provisions apply. Where the defendant is a citizen of an EU state, it is presumed that the defendant is domiciled there and evidence will be required otherwise before national (in Ireland, common law) rules are applied. Where a defendant is a citizen of an EU state and cannot be traced, Brussels 1 applies in the absence of firm evidence that he is domiciled outside the EU.

The provisions on exclusive jurisdiction (choice of law and prorogation of jurisdiction) under the Brussels 1 Regulation apply even if the defendant is not domiciled in an EU state. The is subject to the provisions on consumer and employment contracts.

Brussels Excluded Areas

The Brussels 1 regulation (recast) applies to all civil and commercial matters. The following are exceptions

• revenue customs and administrative matters
• the liability of a state for acts and omissions in the exercise of state authority
• proceedings involving the status or legal capacity of natural persons
• rights in property arising out of a matrimonial relationship or a relationship deemed by law to have comparable effects to marriage
• bankruptcy proceedings
• proceedings relating to winding up of insolvent companies and other legal persons, judicial arrangements, compositions and analogies proceedings
• Social Security
• arbitration
• maintenance obligations arising from an familial relationship
• wills and succession

Domicile (EU Concept)

The general principle of Brussels 1 is that a person domiciled in EU state is to be sued in the courts of that state. This is the case regardless of citizenship and nationality. Non-nationals domiciled in another state are subject to the same rules as nationals of that state.

Domiciled in the context of EU conflict of laws legislation is very different to that applicable a common law.  A person is domiciled in a state only if he or she is  ordinarily resident there or carries out any profession business or occupation in that place.

Ordinary residence is not defined but is interpreted in accordance with its ordinary meaning. A person is domiciled in the State or another state (not being a Member State) if he or she is ordinarily resident in the State or that other state. A a person is domiciled in a place in the State only if he or she is domiciled in the State and is ordinarily resident or carries on any profession, business or occupation in that place.

Any person domiciled in an EU state may avail of the national jurisdiction in that state in the same way as nationals.

Domicile Company

There are special rules in respect of the domicile the company. The company or other legal person,  association of natural persons is domiciled where it has its statutory seat, central administration or principal place of business. Statutory seat means registered office.

In the case of a dispute arising out of the operation of a branch, agency or establishment, the person may be sued in the EU state where it is situated. Operations may cover contractual and non-contractual matters and obligations arising from its activities.

This allows injured parties to take legal action against a branch or agency in the place where it is established, if he has dealt with that branch or agency.

Domicile Trust

As regards a dispute brought against a settlor, trustee or beneficiary of a trust created by the operation of a statute, or by a written instrument, or created orally and evidenced in writing, jurisdiction is with the courts of the Member State in which the trust is domiciled.

A trust is domiciled in the state  the law of the state is the system of law with which the trust has the closest and most real connection.

Salvage and Freight

As regards a dispute concerning the payment of remuneration claimed in respect of the salvage of a cargo or freight,  jurisdiction is with in the court under the authority of which the cargo or freight in question:

• has been arrested to secure such payment; or
• could have been so arrested, but bail or other security has been given;

provided that this provision shall apply only if it is claimed that the defendant has an interest in the cargo or freight or had such an interest at the time of salvage.