Distribution law: Sudden breakup of long lasting business connections:
ECJ rules on international jurisdiction
The European Court of Justice (ECJ) has recently ruled that damage claims after sudden breakup of long lasting business connections without a framework agreement probably should be decided by the courts of the member state, in which the obligation was to satisfy. This obligation could also be based in a tacid agreement built on a long lasting business connection. Evidence for such a tacid agreement are for example long-term development, frequent transactions, consultations for prices, bills or discounts, etc. The national court has to find out if there is a tacid agreement between the parties. In the case at hand the question arose whether a damage claim can be brought before a French or Italian court. Now, the national court has to decide applying the principles stated by the ECJ.
The verdict shows one again that framework agreements should be concluded to avoid such uncertainty.
Dr. Dirk Struckmeier
Company Law And Commercial Law, Distribution Law, International Legal Relations, Law Of General Terms And Conditions Of Business, Mergers And Acquisitions (M & A) / Corporate Restructuring, Product Liability And Product Safety, Professional Law / Professional Liability Of Tax Accountants, Auditors And Attorneys – At Law And Insolvency Administrators, Transformation Law
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