Niall Collins (Limerick, Fianna Fail) | Oireachtas source

Fianna Fáil supports the Bill, which implements a Government decision to agree to the proposals contained in the convention in 2005. The Bill will clarify the rules surrounding international agreements which outline within them which court shall hear a case in the instance of a dispute. Acceding to this convention will promote greater legal certainty for cross-border business and create a climate more favourable to international trade and investment. The increasing codification of international dispute resolution provides the Irish legal sector with an excellent opportunity to become a world centre for the hearing of legal disputes. Given that Ireland is an English-speaking, common law and stable eurozone jurisdiction with strong international relations, the Government should be exploring ways of increasing the commercial opportunities in this sector. The Minister should examine whether it would be possible to create the legal equivalent of the IFSC in Ireland for international legal disputes.

The Hague Convention on Choice of Court Agreements of 30 June 2005, also knowns as the choice of court convention, aims to ensure the effectiveness of choice of court agreements, also known as forum selection clauses or jurisdiction clauses, between parties to international commercial transactions. In order to manage risk, parties often seek to agree in advance on how disputes arising out of transactions between them will be resolved. In some cases, the parties will refer the dispute to arbitration. In others, they will agree to litigate before a designated court. While arbitration agreements in international cases are almost universally recognised pursuant to the rules established by the New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards 1958, choice of court agreements are not always respected under divergent national rules, particularly when cases are brought before a court other than the one designated by the parties.

The choice of court convention seeks to rectify this situation, thereby promoting greater legal certainty for cross-border business and creating a climate that is more favourable to international trade and investment, as underscored by the International Chamber of Commerce.

The convention contains three basic rules that give effect to choice of court agreements: the chosen court must in principle hear the case under Article 5; any court not chosen must in principle decline to hear the case under Article 6; and any judgment rendered by the chosen court must be recognised and enforced in other contracting states except where a ground for refusal applies under Articles 8 and 9.

The convention applies to choice of court agreements "concluded in civil or commercial matters". It excludes consumer and employment contracts and certain specified matters. The reason for these exclusions is, in most cases, the existence of more specific international instruments and national, regional or international rules that claim exclusive jurisdiction over some of these matters. The convention applies to "exclusive" choice of court agreements. An agreement designating one or more specific courts in a contracting state is deemed to be exclusive unless the parties have expressly provided otherwise. In addition, a contracting state may declare that it will recognise and enforce judgments given by courts designated in a non-exclusive choice of court agreement.

Fianna Fáil supports the Bill. Any measure that helps international parties to resolve disputes and assists trade, commerce and investment is to be welcomed.

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