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Clifford Chance

Clifford Chance
Briefings

Briefings

French court questions one-sided jurisidction clauses

1 October 2012

The highest French court has decided that a commonly used for of jurisdiction clause is ineffective. A clause that requires one party to sue only in a named court but that allows the other to sue anywhere does not, if concluded, comply with article 23 of the Brussels I Regulation. The Cour de cassation's decision is not binding, but it will be persuasive. As a result, until the Court of Justice of the European Union gives an authoritative decision, there is some uncertainty as to the effectiveness of this type of clause. Careful consideration therefore needs to be given in individual transactions as to what for the jurisdiction clause should take.

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