Revising Brussels I: An Overview of the Commission's Proposal

On 14 December 2010, the European Commission published its proposal in respect of the reform of the 'Brussels I' Regulation (44/2001), which governs the courts' jurisdiction and the recognition of judgments in the EU. The publication of this proposal represents the latest step in a reform process which was initiated by the Commission in April 2009, and should give rise to a final text in two years. The amendments to the Regulation are aimed at increasing the efficiency of the judicial framework in the EU, by reducing the costs and bureaucracy associated with cross-border litigation, and in so doing, creating the necessary legal environment for the European economy to recover. The UK Government has launched a consultation ending in February 2011 on how the UK should approach the negotiations on the revision of the Brussels I Regulation, which can be accessed by clicking here. You can also access the Commission's Proposal by clicking here. The most significant reform is the abolition of the 'exequatur' procedure, which, if adopted, will allow for the automatic recognition and enforcement of judgments between Member States, thereby reducing cost and administrative burden for those seeking enforcement. The draft amended Regulation also includes significant changes as to how 'choice of court' agreements are dealt with, and as to how greater access to justice is ensured in respect of disputes involving non-EU defendants. Notably, the proposal keeps arbitration excluded from the scope of the Regulation, but provides a solution to avoid situations where parties can try to undermine arbitration agreements by initiating inefficient parallel court proceedings.

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Detailed overview

The 'Brussels I' Regulation (Regulation 44/2001) facilitates civil judicial cooperation in the EU by harmonising the rules of jurisdiction of the EU Member States in a cross-border dispute, and by ensuring the effective recognition and enforcement of judgments issued in another Member State. It is directly applicable in English law. The European Commission's legislative proposal has been published within the context of the obligation contained in the Regulation for a five-yearly review, and follows on from the report and a Green Paper adopted by the Commission in April 2009, which set out the Commission's proposals on possible options for reform.

The proposals for reform have been sent to the European Parliament and the Council to be adopted under the ordinary legislative procedure, and final approval of the proposed reforms is expected within the next two to three years.

A summary of the key proposals for reform are as follows.

1. Abolition of 'exequatur' procedure

   Currently, under the...