What will happen to international commercial litigation post-Brexit?

Multinational companies that depend on cross-border transactions and partnerships are worried about the adverse consequences they might face in the future. The discussions around Brexit and legal services are still uncertain in many areas.

Some executives fear their downfall. Many others view it as the rise of a new era. No matter what side you are on, you need to understand the basics before you file a lawsuit.

Here is everything you need to know:

1. How Does the Current Legal System for International Litigations Work?

At present, cross-border commercial litigations often operate under the EU regulations. It is strictly for cases involving one or more parties based in EU. We address civil and commercial matters through the Brussels I Recast Regulation. On the other hand, the contractual and non-contractual cases work according to the Rome I and the Rome II Regulations.

The benefits of this legal framework include:

  • Definite and predictable outcomes
  • It simplifies the legal system and makes it accessible for the poorest man
  • The EU law has a schematic approach that makes it more comprehensive
  • The law safeguards the rights of all the participants

The main idea is to prioritise a legal system that gives an equal footing to all participants involved. The English law often comes to play when we fight the case under English jurisdiction.

2.  What Will Happen to Commercial Litigation Post-Brexit?

Typically, the English courts do not need to seek permission to use English jurisdiction if the case involves EU-based participants. This rule might not apply in a post-Brexit setting.

There are several different ways to support commercial litigation post-Brexit. For instance, the UK can rejoin the Hague Convention (2005). That way, it gets access to a choice of agreements related to the English Law.

However, this agreement does not cover cases concerning B2C.

The other alternative includes the Lugano Convention (2007).  It requires English solicitors to utilise a multi-jurisdiction settled the case. The only problem is that the lack of certainty blurs the lines for unexperienced solicitors. When they address clauses conferring with local jurisdiction, they miss points covering the EU side of the agreement. This missing gap could tip the scales in the opponents’ favour if they are not careful.

3.  What Sort of Changes Can We Expect from Law Firms?

Currently, we cannot predict the potential implications of Brexit on commercial litigation. We expect to see changes and modifications within the legal framework in the near future.

Nevertheless, international law firms (like ours) are striving to stay alert and updated. We try to cover broad areas of the post-Brexit scenarios as well as the technicalities. It requires solicitors in our team to become more responsive, adaptable, and better managers.

All these characteristics prove beneficial for the team when we fight in the court after Brexit.

The Bottom Line

Overall, there will be a significant change in international commercial litigation post-Brexit. The main concerns feature complications include differences in opinions regarding which law should work. Solicitors might also find it challenging to negotiate with opposing parties when no standard rules are supporting this matter.

Despite all this, seasoned commercial litigation lawyers are rigorously preparing themselves for the upcoming modifications. They carefully weigh the pros and cons of each scenario before taking a stand. That way, they can represent their clients in a better and secure manner.

Do you want to know more? Stay tuned for more updates on post-Brexit law.

Recommended Posts

No comment yet, add your voice below!


Add a Comment

Your email address will not be published. Required fields are marked *