Etihad Airways PJSC v Flother [2020] EWCA Civ 1707 (18 December 2020)

Etihad Airways PJSC v Flother [2020] EWCA Civ 1707 (18 December 2020)

Article 31(2) of Brussels Recast applies to asymmetric jurisdiction clauses where, for at least one party, the agreement confers exclusive jurisdiction on the designated court. The English court is not obliged to stay its proceedings under Article 29, as Article 31(2) applies to the jurisdiction clause in the Facility Agreement. The purpose and wording of Article 31(2), read in context, support its application to such clauses to prevent abusive litigation and uphold party autonomy.

Citation
[2020] EWCA Civ 1707
Parties
Claimant/respondent: Etihad Airways PJSC; Defendant/appellant: Prof. Dr. Lucas Flöther
Jurisdiction
England and Wales
Judgment Date
18 December 2020
Procedural Posture
Civil Appeal / Court of Appeal Judgment on Appeal From High Court (commercial Court)
Outcome
Appeal dismissed
Legal Topics
Jurisdiction Clauses, Brussels Recast Regulation, Asymmetric Jurisdiction Agreements, Lis Pendens, Interpretation of EU Law, Choice of Court Agreements
Private International Law Civil Procedure Commercial Law Jurisdiction Clauses Brussels Recast Regulation Asymmetric Jurisdiction Agreements Lis Pendens Interpretation of EU Law +1 more

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Parties

Etihad Airways PJSC

Claimant/respondent

Prof. Dr. Lucas Flöther

Defendant/appellant

Procedural Posture

Civil Appeal / Court of Appeal Judgment on Appeal From High Court (commercial Court)

Legal Issues

  1. 1 Does Article 31(2) of Brussels Recast apply to asymmetric jurisdiction clauses?
  2. 2 Is the English court obliged to stay proceedings under Article 29 or does Article 31(2) apply?
  3. 3 What is the autonomous EU law meaning of 'exclusive jurisdiction' for Article 31(2)?

Ratio Decidendi

Article 31(2) of Brussels Recast applies to asymmetric jurisdiction clauses where, for at least one party, the agreement confers exclusive jurisdiction on the designated court. The English court is not obliged to stay its proceedings under Article 29, as Article 31(2) applies to the jurisdiction clause in the Facility Agreement. The purpose and wording of Article 31(2), read in context, support its application to such clauses to prevent abusive litigation and uphold party autonomy.

Court Disposition

Appeal dismissed

Orders

  • The English court is not obliged to stay its proceedings under Article 29 of Brussels Recast.
  • Article 31(2) of Brussels Recast applies to the asymmetric jurisdiction clause in the Facility Agreement.