"Rome" is eternal

The rules regarding applicable law as well as determining which country’s court has jurisdiction over the dispute and quick enforcement of the verdicts are very important for the entrepreneurs doing cross-border business in the EU. Thanks to the EU Regulations known as: Brussels I Recast, Rome I and to some extent Rome II, there are unified rules regulating all the above matters among all the EU countries, with some exceptions regarding Denmark.

What about the United Kingdom after Brexit?

With the effect from 1 January 2021, EU rules on court jurisdiction, recognition and enforcement of judgments will no longer apply in relations with the UK. Brussels I Recast will apply only to those court proceedings that has started before 1 January 2021. Lack of Brussels I Recast in relations with the EU means that the enforcement of judgments issued by the British courts in the EU, and vice versa, will not be as fast as it used to be.

Fortunately, the rules regarding law applicable and choice of law will not change significantly after Brexit. This is because the provisions of Rome I Regulation remain in force as the United Kingdom has adopted those to the domestic law, as so-called Retained EU Law. As a consequence any EU court, as well as any court based in the United Kingdom, should use the same rules in order to determine whether the choice of law made by the parties in certain agreement is binding or which law is applicable in case there was no choice of law clause in the contract or it was ineffective.

European and British courts will also use the same rules to determine which law is applicable to non-contractual obligations such as for instance tort. This is because Rome II Regulation has also been adopted to the domestic law in the UK.

Applicable legal acts:

1. EU Regulation No 1215/2012 on jurisdiction and the recognition and enforcement of judgments in civil and commercial matters (know as “Brussels I Recast” or “Brussels I bis”)
2. EU Regulation No 593/2008 on the law applicable to contractual obligations (“Rome I”)
3. EU Regulation No 864/2007 on the law applicable to non-contractual obligations (“Rome II”)
4. European Union (Withdrawal) Act 2018