European Union: Recast Of Brussels I Regulation Extends Scope Of Jurisdiction Rules And Facilitates Cross-Border Recognition And Enforcement Of Judgments

On 6 December 2012, the European Council adopted a recast of Regulation 44/2001 on jurisdiction and the recognition and enforcement of judgments in civil and commercial matters (the "Brussels I Regulation"). With the recast, the European Council intends to facilitate and accelerate cross-border litigation and the circulation of judgments in civil and commercial matters within the European Union.

With regard to jurisdiction in cross-border cases, the scope of the Brussels I Regulation is extended to cases involving third country defendants. Consumers and employees will be able to sue their contracting party, or employer, regardless of the latter's domicile within or outside the EU, in the courts of the Member State in which the consumer is domiciled or the employee carries out his work. In addition, national rules of jurisdiction can no longer be applied by Member States in relation to consumers and employees domiciled outside the EU. The same rule applies to third country parties involved in matters for which the Brussels I Regulation provides for exclusive jurisdiction and matters resulting from a forum choice for the courts of a Member State.

As far as the procedure for recognition and enforcement of judgments between Member States is concerned, the new Regulation abolishes the current exequatur procedure that is generally required for enforcing judgments in other Member States. It instead provides a general rule for the automatic recognition and enforcement of a judgment given by a court of another Member State. The judgment will be recognised and enforceable upon presentation of the judgment and a certificate that includes a summary of the case. Enforcement only requires the prior serving of this certificate onto the defendant.

Furthermore, the recast of the Brussels I Regulation introduces international rules on lis pendens for cases pending between the same parties in relation to the same subject matter in the courts of a Member State and third countries.

The recast Brussels I Regulation will enter into force in 2015, including in the U.K. and Ireland. By contrast, it will not apply to Denmark, unless Denmark decides to opt in.

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