Janna Purdie considers exclusive jurisdiction clauses: the separability of such clauses and the consequences of an invalid contract
In a judgment extending the court's powers under exclusive jurisdiction clauses, the Court of Appeal held that courts hearing contractual claims, made pursuant to an exclusive jurisdiction clause, may in the event that the contract is invalid also determine any alternative claims brought as a consequence of a finding that the contract is invalid.
The claimant banks brought proceedings for repayment of monies under a credit agreement. The claimants asserted that the credit agreement contained a valid jurisdiction clause which complied with Art 23 of the Judgments Regulation 44/2001 (The Judgments Regulation) such that it should be regarded as an exclusive jurisdiction clause.
The defendants asserted that the credit agreement was void for want of authority.
The banks accordingly applied for permission to amend their claim to bring alternative claims in restitution and/or misrepresentation (the new claims) in the event that the credit agreement was found to be void.
Mr Justice Flaux refused the banks permission to amend.
