1 - The Context and History of the Hague Negotiations

Summary

INTRODUCTION

The Hague Convention on Choice of Court Agreements [“the Convention”] requires that courts give effect both to agreements of the parties regarding the proper forum for settlement of disputes, and to the resulting judgments. The Convention is contained in the Final Act of the Twentieth Session of the Hague Conference on Private International Law, signed on June 30, 2005, and will affect both the planning of international commercial transactions and the process of dispute settlement in the resulting relationships. The Convention, in many ways, may serve as the litigation counterpart to the very successful United Nations Convention on the Recognition and Enforcement of Foreign Arbitral Awards (New York Convention).

This initial chapter provides context for consideration of the Convention. We first deal with the political-legal context, and then provide a history of both the legal issues and the process that led to the Convention.

THE CONTEXT OF THE HAGUE NEGOTIATIONS

Global trade, with its increase in the movement of people, goods, capital, services, and ideas across borders brings with it an increase in transnational disputes. In the absence of uniform legal rules of substance and practice, uncertainties abound in the resolution of these disputes. These uncertainties are reflected in party forum shopping and parallel proceedings, as well as in difficulties and expense in the recognition and enforcement of foreign judgments.

Problems of recognition and enforcement of home country judgments in foreign countries are of particular concern, especially for U.S. judgment creditors.