Joseph Lookofsky and Ketilbjørn Hertz
Transnational Litigation and
Commercial Arbitration
An Analysis of American, European
and International Law
Fourth Edition
DJØF Publishing
2017
Joseph Lookofsky and Ketilbjørn Hertz
Transnational Litigation and Commercial Arbitration
Fourth Edition
© 2017 by Djøf Publishing
Jurist- og Økonomforbundets Forlag
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TABLE OF CONTENTS
TABLE OF CONTENTS
TABLE OF CONTENTS
PREFACE TO THE FOURTH EDITION (2016) ....................
CHAPTER 1
1.1.
1.2.
CHAPTER 2
2.1.
2.1.1.
2.1.2.
A.
B.
C.
D.
2.2.
2.2.1.
2.2.2.
A.
B.
THE SUBSTANCE AND PROCEDURE
OF TRANSNATIONAL DISPUTES
Introduction ....................................................
Themes and Cross-Currents in Transnational
Litigation ........................................................
EXTRATERRITORIAL JURISDICTION
Introduction ....................................................
Jurisdiction to Adjudicate ..............................
Bases of Jurisdiction: a Comparative Survey
Territorial Jurisdiction Based on Domicile ...
Specific Jurisdiction in Contract and Tort ....
Jurisdiction by Consent .................................
Nationality-, Property- and Presence-Based
Jurisdiction .....................................................
Extraterritorial Jurisdiction within the
European Union: The Brussels I Regulation
Regulation Overview .....................................
Jurisdiction in Contract Cases .......................
Place of Performance .....................................
Industrie Tessili Italiana Como v Dunlop AG
(1976) .............................................................
Notes, Questions and Commentary ...............
A. de Bloos Sprl v Bouyer (1976) .................
Notes, Questions and Commentary ...............
Shenavai v Kreischer (1987) .........................
Notes, Questions and Commentary ...............
Car Trim GmbH v KeySafety Systems Srl
(2010) .............................................................
Notes, Questions and Commentary ...............
Jurisdictional Clauses: an Introduction to
Article 25 .......................................................
Estasis Salotti di Colzani Aimo and Colzani
v RÜWA Polstereimaschinen GmbH (1976)
13
15
22
27
27
34
35
37
40
41
47
47
55
55
58
71
72
80
80
87
89
101
109
115
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TABLE OF CONTENTS
C.
D.
2.2.3.
2.2.4.
2.3.
2.4.
2.4.1.
2.4.2.
2.5.
2.5.1.
Notes, Questions and Commentary ...............
Zelger v Salinitri (No. 1) (1980) ...................
Notes, Questions and Commentary ...............
Ancillary Jurisdiction and the Lis Pendens
Problem ..........................................................
Jurisdiction with respect to Consumer
Contracts ........................................................
Jurisdiction in Tort .........................................
Handelskwekerij G. J. Bier BV v Mines de
Potasse d’Alsace SA (1976) ..........................
Notes, Questions and Commentary ...............
Arcado Sprl v Haviland SA (1988) ...............
Notes, Questions and Commentary ...............
Réunion Européenne SA v Spliethoff’s
Bevrachtingskantoor BV (1998) ...................
Notes, Questions and Commentary ...............
Doing Business Abroad: an Introduction to
Article 7(5) .....................................................
A. de Bloos Sprl v Bouyer (1976) .................
Notes and Commentary .................................
SAR Schotte GmbH v Parfums Rothschild
Sarl (1987) .....................................................
Notes, Questions and Commentary ...............
The Lugano Convention ................................
Jurisdiction Under English National Law .....
Introduction ....................................................
Jurisdiction in Contract under English Law ..
Unterweser Reederei GmbH v. Zapata OffShore Company (The Chaparral) (1968) .....
Notes, Questions and Commentary ...............
Brinkibon Ltd v Stahag Stahl und
Stahlwarenhandels GmbH (1983) .................
Notes, Questions and Commentary ...............
Spiliada Maritime Corp. v Cansulex Ltd.
(The Spiliada) (1986) .....................................
Notes, Questions, and Commentary ..............
Roneleigh Ltd v MII Exports Inc (1989) ......
Notes, Questions & Commentary .................
Extraterritorial Jurisdiction Under American
Law .................................................................
Long-Arm Jurisdiction, State and Federal
Courts, and Due Process of Law ...................
World-Wide Volkswagen Corp. v. Woodson
(1980) .............................................................
124
131
136
137
150
153
155
165
180
186
189
201
203
208
213
216
223
226
229
229
229
231
237
239
244
245
255
256
261
263
263
278
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TABLE OF CONTENTS
2.5.2.
A.
B.
C.
2.5.3.
2.5.4.
A.
B.
Notes, Questions and Commentary ...............
Helicopteros Nacionales de Colombia, S.A.
v. Hall (1984) .................................................
Notes, Questions & Commentary .................
Goodyear Dunlop Tires Operations, S.A. v.
Brown (2011) .................................................
Notes, Questions and Commentary ...............
Jurisdiction in Contract Cases .......................
The Supplementary Rules .............................
Burger King Corporation v. John Rudzewicz
(1985) .............................................................
Notes, Questions and Commentary ...............
Afram Export Corporation v. Metallurgiki
Halyps, S.A. (1985) .......................................
Notes, Questions and Commentary ...............
Contract Jurisdiction: Quasi in Rem .............
Majique Fashions, Ltd. v. Warwich & Co.
Ltd. (1979) .....................................................
Notes, Questions and Commentary ...............
Forum Agreement ..........................................
M/S Bremen v. Zapata Off-Shore Company
(1972) .............................................................
Notes, Questions and Commentary ...............
Jurisdiction in Tort .........................................
Asahi Metal Industry Co., Ltd. v. Superior
Court of California (1987) .............................
Notes, Questions and Commentary ...............
J. McIntyre Machinery, Ltd. v. Nicastro
(2011) .............................................................
Notes, Questions and Commentary ...............
Ainsworth v. Moffett Engineering, Ltd.
(2013) .............................................................
Notes, Questions and Commentary ...............
Forum Non Conveniens & Lis Pendens
under American Law .....................................
Forum Non Conveniens under American
Law .................................................................
Pain v. United Technologies Corp. (1980) ...
Notes, Questions & Commentary .................
In re Union Carbide Corporation Gas Plant
Disaster at Bhopal, India in December 1984
(1987) .............................................................
Notes, Questions & Commentary .................
Lis Alibi Pendens ...........................................
286
288
294
299
306
309
309
310
319
323
328
332
334
339
340
343
352
360
365
373
377
393
395
400
401
401
403
413
418
424
426
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TABLE OF CONTENTS
Case Extract & Notes re. Ingersoll Milling
Machine Co. v. Granger (1987) ....................
C. Antisuit Injunctions under American Law ....
2.5.5. Jurisdiction over Foreign Business Entities &
the Corporate Veil ..........................................
Bulova Watch Co. v. K. Hattori & Co.
(1981) .............................................................
Notes, Questions & Commentary .................
2.6. Hague Convention on Choice of Court
Agreements ....................................................
CHAPTER 3
3.1.
3.2.
3.2.1.
A.
B.
C.
3.2.2.
A.
B.
C.
D.
3.2.3.
THE APPLICABLE LAW – IN
CONTRACT AND TORT
General Introduction ......................................
European Law ................................................
Contract Conflicts and the Rome I
Regulation ......................................................
Party Autonomy .............................................
ISS Machinery Services Ltd v Aeolian
Shipping SA (The Aeolian) (2001) ...............
Notes, Questions and Commentary ...............
Egon Oldendorff v Libera Corporation
(1996) .............................................................
Notes, Questions and Commentary ...............
Supplementary Rules in the Absence of
Choice ............................................................
Intercontainer Interfrigo SC (ICF) v MIC
Operations BV (2009) ...................................
Notes, Questions and Commentary ...............
Mandatory Rules ............................................
Transocean Drilling Ltd UK v
Arbejdsministeriet (2000) ..............................
Notes and Commentary .................................
Sales Law Conflicts and Harmonization: the
1955 Hague Convention and the 1980
Vienna Convention (CISG) ...........................
Introduction ....................................................
The 1955 Hague Convention on the Law
Applicable to International Sales ..................
The 1980 Vienna Convention: Article 1 of
the CISG .........................................................
The Revised (1986) Hague Convention on
the Law Applicable to Sales ..........................
Tort Conflicts under European Law ..............
429
432
437
444
455
460
471
480
480
485
487
497
499
512
514
520
544
548
552
558
560
560
562
564
567
568
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TABLE OF CONTENTS
A. Non-Contractual Obligations and the Rome
II Regulation ..................................................
B. Selected Tort Cases under European
National Law ..................................................
Red Sea Insurance Co. Ltd v Bouygues SA
(1995) .............................................................
Notes and Commentary .................................
Edmunds v Simmonds (2000) .......................
Notes, Questions and Commentary ...............
Krægpøth v Rasmussen (1982) .....................
Notes, Questions and Commentary ...............
3.2.4. Product Liability ............................................
3.3. American Law ...............................................
3.3.1. Introduction: Significant Contacts and
Government Interests .....................................
3.3.2. American Conflicts in Contracts and Sales ...
A. The First Restatement ....................................
Madaus v. November Hill Farm, Inc. (1986)
Notes, Questions and Commentary ...............
B. The Second Restatement ...............................
Nordson Corp. v. Plasschaert (1982) ............
Notes, Questions and Commentary ...............
C. International Sales Contracts (Revisited) ......
Ajax Tool Works, Inc. v. Can-Eng Mfg. Ltd.
(2003) .............................................................
Notes, Questions & Commentary .................
3.3.3. Tort Conflicts .................................................
A. The First Restatement ....................................
B. The Second Restatement (and other Modern
Approaches) ...................................................
Babcock v. Jackson (1963) ............................
Notes, Questions and Commentary ...............
Barkanic v. General Admin. of Civil
Aviation [China] (1991) ................................
Notes, Questions & Commentary .................
Simon v. Philip Morris Inc. (“Simon II”)
(2000) .............................................................
Notes and Questions ......................................
3.3.4. Product Liability & the Applicable Law .......
Trahan v. Squibb, Inc. (1983) ........................
Notes, Questions & Commentary .................
Kozoway v. Massey-Ferguson, Inc. (1989) ..
Notes, Questions & Commentary .................
Townsend v. Sears Roebuck (2007) .............
568
585
587
601
602
609
615
620
624
634
634
647
647
648
653
655
660
667
674
675
676
678
678
679
681
690
693
698
700
704
706
710
716
718
723
723
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TABLE OF CONTENTS
3.4.
CHAPTER 4
4.1.
4.2.
4.2.1.
4.2.2.
4.2.3.
4.2.4.
4.3.
4.3.1.
4.3.2.
4.3.3.
CHAPTER 5
5.1.
5.2.
5.2.1.
5.2.2.
5.3.
5.3.1.
5.3.2.
Notes, Questions & Commentary .................
Hague Principles on Choice of Law in
International Commercial Contracts .............
EXTRATERRITORIAL SERVICE &
EVIDENCE ABROAD
General Introduction ......................................
The Service of Process on Defendants
Abroad ............................................................
Introduction ....................................................
Service under European Law ........................
Service under American Law ........................
The Hague Service Convention .....................
Volkswagenwerk Aktiegesellschaft v.
Schlunk (1988) ...............................................
Notes, Questions and Commentary ...............
The Taking of Evidence Abroad ...................
Introduction ....................................................
The Taking of Evidence under National Law
The Hague Evidence Convention ..................
Société Nationale Industrielle Aerospatiale v.
United States District Court (1987) ...............
Notes, Questions and Commentary ...............
RECOGNITION & ENFORCEMENT OF
FOREIGN JUDGMENTS
General Introduction ......................................
Enforcement under European Law ................
Enforcement under National Law .................
Adams & Others v Cape Industries plc
(1989) .............................................................
Notes, Questions & Commentary .................
Recognition & Enforcement under the
Brussels I Regulation .....................................
Debaecker & Plouvier v Bouwman (1985) ...
Notes, Questions and Commentary ...............
Recognition & Enforcement under Americal
Law .................................................................
Recognition and Enforcement of Sister-State
Judgments ......................................................
Griffis v. Luban (2002) ..................................
Notes, Questions & Commentary .................
Recognition and Enforcement of Foreign
Country Judgments ........................................
735
739
741
743
743
744
749
754
757
769
773
773
773
783
787
800
805
810
810
816
830
832
843
855
860
860
862
868
869
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TABLE OF CONTENTS
Somportex Ltd. v. Philadelphia Chewing
Gum Corp. (1971) ..........................................
Notes, Questions and Commentary ...............
Ackermann v. Levine (1986) ........................
Notes, Questions & Commentary .................
5.3.3. Proposed Federal Legislation and New
Federal “Speech” Statute ...............................
A. American Law Institute Proposal ..................
B. New Federal Legislation: “Speech” (2010) ..
CHAPTER 6
6.1.
6.2.
6.2.1.
6.2.2.
6.2.3.
6.2.4.
6.3.
6.3.1.
6.3.2.
6.4.
6.4.1.
6.4.2.
6.4.3.
INTERNATIONAL COMMERCIAL
ARBITRATION
Introduction. The Arbitration Alternative ....
The Arbitral Scenario and the Applicable
Laws ...............................................................
The Arbitral Scenario ....................................
Institutional Arbitration .................................
From Procedure to Conflicts and Substantive
Law .................................................................
International Regulation: An Introduction to
the 1958 New York Convention ...................
Pre-Award Enforcement ................................
Contract Formation, Interpretation &
Validity ..........................................................
Kahn Lucas Lancaster, Inc. v. Lark
International Ltd. (1999) ...............................
Notes, Questions and Commentary ...............
Zambia Steel & Building Supplies v James
Clark & Eaton Ltd. (1986) ............................
Notes, Questions & Commentary .................
McDonnell Douglas Corp. v. Kingdom of
Denmark (1985) .............................................
Notes, Questions & Commentary .................
Mitsubishi Motors Corp. v. Soler ChryslerPlymouth, Inc. (1985) ....................................
Notes, Questions & Commentary .................
Interim Measures ...........................................
Post-Award Enforcement ..............................
Introduction ....................................................
Judicial Review in the Country of Origin .....
Bergesen v. Joseph Muller Corp. (1983) ......
Notes, Questions and Commentary ...............
Recognition and Enforcement of Foreign
Awards ...........................................................
874
878
884
895
901
901
902
907
912
912
924
927
938
942
942
944
951
956
965
967
973
974
989
996
1001
1001
1003
1008
1015
1016
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TABLE OF CONTENTS
Parsons & Whittemore Overseas Co. Inc. v.
RAKTA (1974) ..............................................
Notes, Questions & Commentary .................
International Standard Electric Corp. v.
Bridas Sociedad Anonima Petrolera (1990) .
Notes, Questions & Commentary .................
1020
1027
1033
1042
TABLE OF CASES ..................................................................... 1047
INDEX ............................................................................................ 1049
PREFACE TO THE FOURTH EDITION
(2016)
Preface to the fourth edition (2016)
Lawyers engaged in transnational litigation and commercial arbitration
cannot make do with any single set of national rules. In the age of globalization, the rules of private international law (in America: conflict of
laws) are important to all of us. To understand how these PIL/conflicts
rules function in practice, we lawyers must confront a complex mixture
of local, regional and international law.
Most of the rules and cases presented in the Third (2011) Edition of
Transnational Litigation and Commercial Arbitration are still ‘good
law.’ In 2012, however, a ‘recast’ version of the Brussels Regulation on
Jurisdiction and Judgments was adopted by the European Union, replacing the prior version as regards legal proceedings instituted on or after
10 January 2015. For this reason alone the time for a Fourth Edition has
clearly arrived, but we also grasp this opportunity to account for recent
key American developments, not least as regards new leading U.S. Supreme Court decisions regarding the exercise of adjudicatory jurisdiction in transnational contexts.
Since Transnational Litigation covers considerable territory – the applicable rules of international dispute resolution, including the application
of PIL/conflicts rules by European and American courts as well as by
arbitral tribunals – an update covering developments during the past 5
years required a considerable amount of work; as with the 3rd edition,
we co-authors consider ourselves lucky to be able to share the burdens
involved.
Like its three predecessors, this Fourth Edition of Transnational Litigation seeks to strike an acceptable transatlantic balance – not only between the presentation of relevant American and European legal rules,
but also between traditional American (case book) and European (treatise) types of presentation. As in the previous editions, Chapters 2-6
each begin with a general introduction, followed by relevant case law
presentations (paradigm facts, key issues, excerpts, etc.). These presentations are supplemented by additional notes and commentary with re-
14
PREFACE TO THE FOURTH EDITION (2016)
spect to related case and statutory law. Although practical limitations do
not permit a comprehensive treatment of all relevant American or European rules, we have attempted to include and organize enough material
to bring home what we consider to be the main points – all the while
keeping local, regional, global as well as comparative considerations in
mind.
We have done our best to update and improve the Third Edition. As part
of this process, we have removed errors and ambiguities which we (and
our students) discovered during previous years. Since this Fourth Edition will inevitably contain new points which need clarification or revision, we kindly invite our readers to send their comments to the e-mail
address below.
Joseph Lookofsky ([email protected]) and Ketilbjørn Hertz
Copenhagen, Denmark
Winter 2016