Source: EURLEX
Language: en
Format: md

[JURE SUMMARY](#SM)

## JURE SUMMARY

The defendant, an English company, purchased a chemical from the plaintiff, a Spanish company. The contract was in the defendant's standard terms and included a clause prorogating non-exclusive jurisdiction to the English courts. A dispute arose and the defendant refused to pay the plaintiff for the chemical. Criminal proceedings were brought in Spain against some employees of the plaintiff. It was alleged that the plaintiff was illegally producing chemicals without authorisation. The defendant also lodged civil claims based on fraud and infringements of intellectual property rights in these proceedings. After the criminal proceedings had been commenced, but before the defendant's civil claims had been joined to the criminal proceedings, the plaintiff commenced an action in England seeking payment for the chemical. The defendant challenged the jurisdiction of the English courts.
The High Court (UK) holds that the defendant's terms and conditions, including the non-exclusive jurisdiction clause, validly form part of the contract. The effect of Article 17(1) Brussels Convention is to make such a clause mandatory, meaning that the default provisions of the Convention no longer apply. Article 17(4) Brussels Convention, however, provides an exception to this rule in relation to jurisdiction agreements concluded for the benefit of one party. In such a case, that party has a choice of jurisdiction. The court finds that the contract was concluded for the benefit of the defendant, which is therefore at liberty to bring proceedings in Spain, subject to the requirements of Articles 21 and 22 Brussels Convention. The court states that it has been first seised of the cause of action. The service of the claim in the English proceedings took place before the defendant's civil claims were joined in the Spanish criminal proceedings. Thus, the court is not required to stay its proceedings according to Article 21 or 22 Brussels Convention.

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