The Hague Convention on Choice of Court Agreements 2005: What You Need to Know

The Hague Convention on Choice of Court Agreements (HCCA) 2005 is an international legal treaty that governs the recognition and enforcement of court judgments across borders. The Convention aims to provide certainty and predictability to parties involved in cross-border disputes, by ensuring that their choice of court agreements are respected and enforced in other contracting states.

The HCCA 2005 was adopted on June 30, 2005, and has been ratified by 34 states, including the European Union and Mexico. The United States signed the Convention in 2009 but has yet to ratify it.

The HCCA 2005 applies to exclusive choice of court agreements, where parties agree to submit their disputes to a particular court or forum. It does not apply to non-exclusive choice of court agreements or to agreements that only select a forum for arbitration.

Under the HCCA 2005, contracting states must recognize and enforce judgments rendered by courts chosen by the parties in an exclusive choice of court agreement, provided that the court had jurisdiction to hear the case and that the judgment is not contrary to public policy in the enforcing state.

This means that parties can have more confidence in their choice of forum and can avoid the expense and uncertainty of litigating in multiple jurisdictions. It also means that parties can enforce court judgments across borders, without having to engage in lengthy and costly enforcement proceedings.

The HCCA 2005 also provides for the recognition and enforcement of provisional measures, such as injunctions or orders to preserve evidence, issued by courts chosen by the parties in an exclusive choice of court agreement.

In conclusion, the Hague Convention on Choice of Court Agreements 2005 is an important international treaty that provides greater certainty and predictability for parties involved in cross-border disputes. It ensures that exclusive choice of court agreements are respected and enforced in other contracting states, reducing the risk of costly and time-consuming legal battles. If you are involved in cross-border transactions or disputes, it is important to be aware of the Convention and its implications for your business.