At the end of the transition period the United Kingdom will leave the EU’s civil judicial cooperation framework, which presently contains a framework of rules on matters such as jurisdiction, applicable law and recognition and enforcement of judgments that apply to disputes between parties in the UK and parties in an EU member state which raise cross-border issues. These EU rules will no longer apply and jurisdiction of the Court of Justice of the European Union in relation to these rules will end. To protect parties involved in such disputes where proceedings are issued before the end of the transition period, the Withdrawal Agreement provides that the EU rules will continue to apply in such cases.
At the end of the transition period the UK will re-join the 2005 Hague Convention on Choice of Court Agreements as an independent contracting state. This Convention ensures that exclusive choice of court agreements in commercial contracts are given effect i.e. that the jurisdiction of the chosen court will be respected and its judgment will be recognised and enforced by the courts of other Contracting Parties (which include the EU). Where cases fall outside the scope of the 2005 Hague Convention, matters - such as jurisdiction for, and recognition and enforce of civil and commercial judgments in, cross border disputes - arising after the end of the transition period will be determined under the domestic private international law rules of the UK and the relevant EU member state.
The UK has also applied to re-join to the 2007 Lugano Convention, as an independent contracting party. This is an international convention that provides rules on jurisdiction and the recognition and enforcement of judgments in civil and commercial matters involving parties from EU member states and Norway, Iceland and Switzerland. Our application is currently being considered by the existing signatories to the Convention and, if it were to be successful, would provide a comprehensive framework for dealing with commercial disputes.
The Government will soon be publishing guidance explaining the changes to the laws applying to civil and commercial disputes on Gov.uk.
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