What Impact Will Brexit Have On Dispute Resolution?

If you’re negotiating a contract, you should think carefully about your dispute resolution and governing law clauses. These clauses should be drafted to make clear which courts are to have jurisdiction in the event of a dispute and which law is to govern the contract.

If you already have a court judgment which needs to be enforced in another EU state, you should do so as soon as possible. This is to make sure that you take advantage of the enforcement mechanism set out in the Brussels Regulation, addressing issues of jurisdiction and enforcement.

Brexit could mean that the enforcement mechanism under the Brussels Regulation no longer applies, affecting the way judgments are enforced in EU member states. We can advise you on what this means for you and your business.

Proceedings issued in the six months after the EU referendum may not be immediately affected, as the relevant EU rules will continue to apply. However, larger cases could take many months to settle or reach the judgment stage. The position may become more uncertain for some types of claim (for example, those based on the EU competition regime) which are based on rules that become part of the Brexit negotiations.

Other types of dispute resolution clause – for example, arbitration – won’t be affected by Brexit. Our lawyers can advise you on the best method of dispute resolution for your business needs.

If you’re about to bring a case or know you might become a defendant in a case, contact our commercial litigation specialists for strategic advice on how to reduce the risks post-Brexit.

For more information, please phone 0370 1500 100 or send us an email.

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