2014/887/EU: Council Decision of 4 December 2014 on the approval, on behalf of the European Union, of the Hague Convention of 30 June 2005 on Choice of Court Agreements

What it is

to approve, on behalf of the European Union, of the Hague Convention of 30 June 2005 on Choice of Court Agreements. ROLE OF THE EUROPEAN PARLIAMENT: Council may adopt the act only if Parliament has given its consent to the act. BACKGROUND: the Convention on Choice of Court Agreements concluded on 30 June 2005 under the auspices of the Hague Conference on Private International Law makes a valuable contribution to promoting party autonomy in international commercial transactions and increasing the predictability of judicial solutions in such transactions. In particular, the Convention ensures the necessary legal certainty for the parties that their choice of court agreement is respected and that a judgment given by the chosen court is eligible for recognition and enforcement in cross-border situations . Article 29 of the Convention allows Regional Economic Organisations such us the European Union to sign, accept, approve or accede to the Convention. The Convention will give EU business the necessary legal certainty that their choice of court agreements in favour of a court outside the EU are respected in the EU, and that agreements in favour of a court in the EU are respected in third States. It will also ensure that EU businesses can be confident that a judgment given by the chosen court in the EU is eligible for recognition and enforcement in third states, Contracting Parties to the Convention , and vice versa. Declaration on insurance contracts : a declaration has been added to the proposal which includes a series of technical measures aiming to exclude certain types of insurance contracts from the scope of the Convention , without laying down additional conditions. The exclusion should be limited to what is necessary to protect the interests of the weaker parties (in principle, the policy holder, the insured or beneficiary) in insurance contracts, as is defined in the rules on protective jurisdiction of the Brussels I Regulation. A second declaration stipulated that the Union should at the same time make a unilateral declaration stating that it may, at a later stage in light of the experience acquired in the application of the Convention, reassess the need to maintain its declaration. Territorial provisions : the United Kingdom and Ireland are bound by Regulation (EC) No 44/2001 and are therefore taking part in the adoption and application of this Decision. On the other hand, Denmark is not taking part in the adoption of this Decision and is not bound by it or subject to its application. The Committee on Legal Affairs adopted the report by Pavel SVOBODA (EPP, CZ) on the draft Council decision on the approval, on behalf of the European Union, of the Hague Convention of 30 June 2005 on Choice of Court Agreements. Members considered that the European Union (EU) should participate in this convention as it would ensure greater legal certainty for international exclusive choice-of-court agreements and thus foster trade between participating States. They recommended therefore that the Parliament should give its consent to this convention. They also called on the Parliament to approve the Council's draft decision, which exempts consumer…

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