Page 54

52|Retail News|April 2019|www.retailnews.ie

Brexit & Dispute Resolution

Cross Border Disputes and Brexit

Matheson’s Commercial Litigation and Dispute Resolution Department highlight some of the key issues of Brexit when it comes to disputes, from the perspective of both a negotiated and no-deal exit of the UK from the EU. HOW will Brexit affect cross-border disputes, in particular the law governing such disputes and how will the governing law of a dispute be determined after Brexit? As matters stand, the principles relating to the choice of governing law for EU Member States are detailed in the following Regulations: • the Rome I Regulation (Regulation (EC) No 593/2008) on the law applicable to contractual claims (“Rome I”); and • the Rome II Regulation (Regulation (EC) No 864/2007) on the law applicable to non-contractual claims (“Rome II”) (together, the “Rome Regulations”).

Each instrument sets out clear rules for determining the applicable governing law for relevant claims. The position is unlikely to change post-Brexit for the reasons set out below. Negotiated Exit or ‘No Deal’ If the Withdrawal Agreement and Political Declaration on the future relationship between the UK and the EU (the “Withdrawal Agreement”) applies to Brexit, the Rome Regulations will continue to apply in the UK during the transition period to the end of December 2020. Under Article 66 of the Withdrawal Agreement, Rome I shall continue to apply in respect of contracts entered into before the end of the transition period,

while Rome II shall continue to apply in respect of events giving rise to damage, where such events occurred before the end of the transition period. Further, the European Union (Withdrawal) Act 2018 (the “EUWA”), provides that both will be adopted into UK law after Brexit, which means that the principles of Rome I and Rome II will continue to determine governing law in the UK post-Brexit. If there is a no-deal Brexit, the rules applicable to determining governing law will not change by virtue of the EUWA, which will incorporate Rome I and Rome II rules into UK law. Further, the courts of EU Member States will continue to apply the rules set out in Rome I and Rome II to disputes which may have a

Profile for Retail News

Retail News April 2019  

Retail News, is Ireland’s longest established FMCG B2B magazine. It has been around for over 60 years, from the birth of the supermarket, th...

Retail News April 2019  

Retail News, is Ireland’s longest established FMCG B2B magazine. It has been around for over 60 years, from the birth of the supermarket, th...

Advertisement