On January 18, 2019, the EU Commission published a notice on the impact of a No-Deal Brexit on the rules of civil justice and private international law. This guidance replaced the EU Commission's previous notice dated November 21, 2017. The EU's update followed the UK Law Society's October 2018 publication on the effect of a No-Deal Brexit on civil and commercial cooperation. With concerns on contractual continuity mounting the EU's position on how it will recognize and apply its rules to the UK matters for a wide range of relationships across markets.
This Client Alert provides an overview of the key points in the EU Commission's update and highlights some of the potential repercussions of the UK becoming a "third country" from March 30, 2019 at midnight Central European Time (the Exit Date) as well as departure on a No-Deal basis. The Commission's notice is clear in its warning that "preparing for the withdrawal is not just a matter for EU and national authorities but also for private parties." That warning is echoed by an even stronger one (and emphasized in a standout box in bold) stating, in relation to recognition of judgments: "All stakeholders are advised to take this into consideration when assessing contractual choices of international jurisdiction." The Commission's No-Deal updated notice applies to all disputes i.e. from financial markets to real-economy disputes and beyond.
To read the full client alert, please click here to download.
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