Effect of Brexit on jurisdiction and enforceability of court judgments: reflections on the use of a non-exclusive jurisdiction clause

The EU-UK Trade and Cooperation Agreement (Brexit Agreement) entered into force on 1 January 2021 and is silent on judicial cooperation on civil matters. As a result some doubts have arisen in respect of the enforceability of non-exclusive jurisdiction clauses which are frequently used in cross-border financing. Generally such provisions give finance parties the option to commence proceedings in any courts with jurisdiction instead of exclusively submitting to the predetermined courts.

While the parties to loan arrangements involving member states of the EU as well as Iceland Norway or Switzerland have relied on the 2007 Lugano Convention on the Recognition and Enforcement of Judgements in Civil and Commercial Matters (Lugano Convention) the UK’s withdrawal from the EU has left a potential gap on cross-border enforcement...