Dealing with Competing Jurisdiction Clauses: What is your Centre of Gravity? – 3PB

Posted July 30th, 2020 in contracts, interpretation, jurisdiction, news by sally

‘Complex commercial arrangements can generate difficulties for the parties where their obligations are set out in a multitude of related contracts or a single contract containing inconsistent dispute resolution clauses. It is not uncommon for parties to complex commercial contracts to find themselves arguing over the interpretation of inconsistent jurisdiction clauses which are either found in a single contract, or different but related contracts forming part of the same arrangements. Disagreements over the interpretation of jurisdiction clauses can arise in large-scale energy and infrastructure projects, and other types of arrangements where transactions usually take place under a master agreement. This note will explore the most common scenarios in which courts are often asked to interpret inconsistent dispute resolution clauses, with particular focus on the ‘centre of gravity’ approach adopted by courts.’

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3PB, 27th July 2020

Source: www.3pb.co.uk