The European Private International Law of Obligations

SWEET & MAXWELL

by

Richard Plenderand

Michael Wilderspin

FOURTH EDITIONby

Michael Wilderspin

y.-0.vS U O $ THOMSON REUTERS

TABLE OF CONTENTS

PAGEPreface to the Fourth E d ition ...............................................................................................vTable o f U nited Kingdom C a ses ...................................................................................... xxiTable o f Foreign C a ses .................................................................................................. xxxixTable o f Cases Before the European Court o f Justice (Numerical O rder) xlvTable o f Cases Before the European Court o f Justice (Alphabetical O rder) liiiTable o f International Court and Tribunal C ases ........................................................lxiTable o f United Kingdom Statutes and Statutory Instrum ents...............................IxiiiTable o f Foreign S ta tu tes ................................................................................................. lxviiTable o f European Community Legisla tion ................................................................. lxxiTable o f International and EC Treaties and Conventions.................................. lxxxixTable o f Principal C onventions ........................................................................................xcv

PARAP a r t 1C O M M O N P R IN C IP L E S

1. C on tex ts an d O rig in sThe Genesis o f the Rome Convention and the Rome I and II

RegulationsThe Brussels Convention, its Successors and the Lugano

C onven tion ........................................................................................................1 -001The Preparatory Work on the Rom e C onven tion .........................1-007The Legal Basis: Title IV o f the EC Treaty....................................1-014Preparatory Work on the Rome I and Rome II

R egulations........................................................................................................1-023The Rome Convention, the Rome Regulations and the Legal Order

o f the European U n io n .......................................................................................1-028The Terms o f Related International A greem ents.............................................1-035The Relationship between the Rome Convention, the Rome I and

Rome II Regulations and other C onventions.............................................. 1-050Entry into F o rc e .........................................................................................................1 -061Territorial Application

The Rome C onvention..........................................................................................1-077The Rome I and Rome II R egulations.......................................................... 1-087

In terpretation ...............................................................................................................1-090Teleological Interpretation .................................................................................1-094Interpretation by Reference to Treaty B a s is ............................................... 1 105

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Interpretation by Reference to other Union L egislation........................... 1-108Interpretation by Reference to International C onventions..........................1-114Prelim inary R ulings...............................................................................................1-119

2. T he D ividing L ine Between Rom e I an d Rom e IICharacterisation

Contractual and Non-Contractual O bligations are “Autonom ousConcepts” ........................................................................................................... 2-001

Relevant Criteria: Sources.................................................................................. 2 -0 0 4Studies in Com parative L a w ............................................................................. 2 -006The Relevant Provisions o f the Rome I and Rom e II

R egulations.........................................................................................................2 -007Case Law on the Interpretation o f the Brussels and Rome

ConventionsIntroduction ........................................................................................................2-021Scope o f Tort is R esidual...............................................................................2-023Scope o f “Contract” ........................................................................................ 2 -024Obligations m ust be “Freely A ssum ed” .................................................... 2-025W here the parties to the D ispute are not the Parties to the

Original C o n trac t........................................................................................ 2 -0 2 6W here there is no real Consensus between the Parties......................... 2-028

Specific Borderline AreasW here there is a Contract Between the Parties but Liability

Arises Independently o f i t ....................................................................... 2-035N egligent M isrepresentation........................................................................ 2-038B ailm en t..............................................................................................................2 -044

C onclusions..............................................................................................................2-047Concurrent L iability ...................................................................................................2 -054Intermingling o f Contractual and Tortious Issues............................................2 -069Exemption Clauses as a Defence to Liability in T o rt......................................2 -072

3. T he C o u n try W hose Law is to be A ppliedS um m ary .......................................................................................................................3-001Habitual Residence

Legal Persons..........................................................................................................3-003A Branch, Agency or O ther E stablishm ent................................................... 3 -006Contractual Situations under the Rome I R egulation ................................3-008Non-Contractual Situations under the Rome II R egulation.....................3-012Habitual Residence o f Individual Businesspersons or

T raders.................................................................................................................3 -020The M eaning o f Habitual Residence o f a Natural Person not

Acting in the Course o f Business A ctiv ity .............................................. 3 -024The Exclusion o f R envo i......................................................................................... 3-029States with M ore than One Legal System .......................................................... 3 -032

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P a r t 2C O N T R A C T

4. L egislative H isto ry an d Scope o f the Rom e 1 R egulationLegislative H isto ry .....................................................................................................4-001M aterial S c o p e ............................................................................................................4 -004

U niversal A pplication ..........................................................................................4 -016Intra-State C onflicts............................................................................................. 4 -020Exclusion o f R en v o i............................................................................................ 4 -022

Territorial S cope......................................................................................................... 4-024Tem poral Scope...........................................................................................................4-025

5. E xcluded M a tte rsStatus or Legal Capacity o f Natural P erso n s ....................................................5-001Fam ily Relationships, M atrim onial Property, W ills and

Succession................................................................................................................5-006Fam ily and Equivalent R elationships............................................................. 5-007M atrim onial Property R eg im es........................................................................5-012Wills and Succession ........................................................................................... 5 -020N egotiable Instrum ents........................................................................................5-021A rbitration and Choice o f Court A greem ents..............................................5-028Bodies C orporate .................................................................................................. 5-048A gency ......................................................................................................................5-053T rusts......................................................................................................................... 5-061Evidence and P rocedure..................................................................................... 5 -067D ealings Prior to the Conclusion o f a C ontract.......................................... 5 -074Insurance and R einsurance................................................................................ 5-075The Position under the Rome C onvention....................................................5-076The Position under the Rome I R eg u la tio n ................................................. 5-082

6. F reedom o f C hoiceOrigins o f A u tonom y ................................................................................................6—001Extent o f Autonomy

D efining “the law chosen by the parties” .....................................................6-007Distinction Between Choice o f Law and Incorporation ...........................6-009Choice o f a non-State Body o f Law or an International

C o n v en tio n ........................................................................................................ 6-011Floating Choice o f Law C la u se s .......................................................................... 6-018Ways in W hich the Choice m ay be Demonstrated

Express C h o ice ...................................................................................................... 6-021No Requirem ent that the Choice be Expressed in W ritin g .....................6 -022Clear D em onstration ............................................................................................ 6 -024

D epe?age.......................................................................................................................6-048Variation o f the Chosen L aw ..................................................................................6-050Restrictions upon Party A utonom y.......................................................................6-059Existence and Validity o f the Parties’ Consent as to the Applicable

L a w ............................................................................................................................6-072

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7. A pp licab le Law in D efault o f C hoiceIn troduction ................................................................................................................. 7-001The Position under the Rom e Convention

The Principle o f C losest C o n n ectio n .............................................................7 -002Characteristic Perform ance................................................................................ 7 -004Identifying the Characteristic P erfo rm an ce .................................................7 -010Immovable P ro p erty ............................................................................................7-011Carriage o f G o o d s ................................................................................................7 -017The W eight to be A ttached to the Presum ptions o f Art.4(2), (3)

and ( 4 ) ................................................................................................................ 7 -018The Rome I Regulation

Introduction.............................................................................................................7 028Specifically Nam ed C ontracts ..........................................................................7-031Sale o f Goods and Provision o f Services......................................................7-032Agreem ents Relating to Immovable Property..............................................7 -039Franchise A greem ents..........................................................................................7-043Distribution C ontracts..........................................................................................7-045A uctions...................................................................................................................7 -049Financial Instrum ents......................................................................................... 7-050O ther Contracts: A rt.4 (2 )....................................................................................7 -054Circum stances in w hich A rt.4(2) is A pp licab le .......................................... 7-055Identifying the Characteristic P erfo rm ance .................................................7 -058Habitual Residence o f the Party Effecting the Characteristic

Perform ance.......................................................................................................7-064The Second Limb o f Art. 19(2).........................................................................7 -066The First Limb o f Art. 1 9 (2 )..............................................................................7-068Closest C onnection .............................................................................................. 7-071Escape Clause: Art.4 (3 ) ......................................................................................7-075Default Rule: A rt,4 (4 )..........................................................................................7 -087

8. C o n tra c ts o f C a rr ia g eIntroduction ..................................................................................................................8-001

Carriage o f G o o d s ................................................................................................8 -009“Contract for the Carriage o f G oods” ............................................................8 -0 1 1“Carrier” ...................................................................................................................8-018“Consignor” ............................................................................................................8-021“Habitual Residence” ..........................................................................................8 -022“Place o f Receipt/Place o f Delivery” ............................................................. 8-023The Operation o f the Choice o f Law Rules in Art.5( 1 ) .......................... 8 -026

Carriage o f Passengers............................................................................................. 8-031“Contract for the Carriage o f Passengers” ....................................................8-033P assenger.................................................................................................................8-035Habitual Residence o f P assenger.................................................................... 8-036Habitual Residence or Central A dm inistration o f C a rrie r .......................8-037Place o f Departure or Place o f D estination ................................................. 8-038

Lim itations on Party A u to n o m y ............................................................................8-039Applicable Law in Absence o f C h o ic e ..........................................................8-041

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Effects o f International C onventions................................................................... 8-044Carriage by R oad .................................................................................................. 8-046Carriage by A ir ...................................................................................................... 8-048Carriage o f Passengers and their Baggage by S e a ...................................... 8-053Carriage o f G oods by S e a ...................................................................................8-055Carriage by Rail.....................................................................................................8-058M ulti-M odal T ranspo rt........................................................................................8- 060

9. C o n su m er C o n t ra c ts ...............................................................................................9-001Legislative history o f A rt.6 o f the Rome I R egulation ..................................9 -002Operation o f A rt.6 o f the Rome I Regulation

I n trod ucti o n ............................................................................................................. 9-004Personal S cope....................................................................................................... 9-006The “Consum er” ....................................................................................................9-007The P ro fessional................................................................................................... 9-014The M aterial Scope o f Art.6 ..............................................................................9-017Excluded Consum er C on tracts......................................................................... 9-018The Circum stances in which A rt.6 A p p lie s ................................................. 9-035The Protection Afforded to C onsum er C o n trac ts .......................................9 -056Provisions that cannot be Derogated from by C o n tra c t...........................9 -057

The Relationship between the Conflict Rules o f A rt.6 o f the Rome Regulation and Consum er Protection Rules in UK law, European Union Legislation and International Conventions United K ingdom Law

The Unfair Contract Terms Act 1977 ....................................................... 9 -064Consum er Credit Act 19 7 4 ..................................................................................... 9 -068Consum er Protection in EU Legislation............................................................. 9 -069International C onventions........................................................................................9-085

10. In su ra n c e C o n tra c tsThe Position under the Rome C onven tion .......................................................10-001Legislative History o f the Rome I R egulation’s R egim e.............................10-010The Position under the Rome I Regulation

Scope o f A rt.7 o f the R egu la tion ...................................................................10-021Insurance Contracts covering a Large R isk ...........................................10-025Party A utonom y in the Case o f Large R isk s........................................ 10-032

Default Rule in the Case o f Large R isk s .................................................... 10-040O ther Insurance Contracts Covering Mass Risks within the

European U n io n ........................................................................................ 10-048Situation o f R is k ............................................................................................10-050Party Autonom y in the Case o f M ass R isks..........................................10-058

R envo i..........................................................................................................................10-067Default Rules in the Case o f Mass R isk s ................................................... 10-071

Insurance Contracts Falling Outside the Scope o f A rt.7 ..............................10-088Party A utonom y................................................................................................... 10-089Applicable Law in Default o f C ho ice.......................................................... 10-090Consum er C o n trac ts ...........................................................................................10-094

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Contracts Covering Risks Situated both Within and Outside theU n io n ..................................................................................................................10-095

R einsurance C ontracts ....................................................................................... 10-101Relationship between Rom e I Rules and Insurance Directive Rules

Situation Pending Transposition o f the Solvency IID irective............................................................................................................10-109

Situation under the Solvency II D irective....................................................10-111Risks Situated in EFTA States Parties to the EEA Agreem ent

Introduction............................................................................................................10-113Situation under the Rome Convention R e g im e ..........................................10-114Situation in the Period between Entry into Force o f Rom e I and

the Extension o f the Solvency II Directive to the EEAStates...................................................................................................................10-116

Situation after the Extension o f the Solvency II Directive to theEEA S tates........................................................................................................ 10-118

11. E m ploym en t C o n t ra c ts ...................................................................................... 11-001Legislative H istory ....................................................................................................11-003Analysis o f Art.8 o f the Rome I R egu la tion ....................................................11-005“ Individual Em ploym ent C ontracts” ................................................................... 11-006Definition o f an “Em ploym ent Contract” ..........................................................11-013Choice o f Law by the P artie s ............................................................................... 11-028Non-Derogable Rules o f the Law Designated by

A rt.8 (2 )-(4 )............................................................................................................11-031A pplicable Law in the Absence o f Choice by the Parties

The Country where the Employee Habitually W orks.............................11-040Concurrent Work in More than One C o u n try ............................................ 11-043Consecutive Work in More than One Country: the Concept o f

“Tem porary Em ploym ent” .......................................................................... 11-048The Place o f Business Through W hich the Em ployee was

Engaged— Art. 8 (3 ) .........................................................................................11-054The Country o f C losest Connection— A rt.8 (4 ).......................................... 11-058The Posted Workers Directive and Choice o f L a w ................................ 11-064

Effects o f Statutes o f the Forum .......................................................................... 11-073

12. O v errid in g M an d a to ry R ules A nd O rd re PublicIntroduction ................................................................................................................ 12-001The M eaning and Effect o f Overriding M andatory R u les.......................... 12-003The Position under the Rome C onven tion ....................................................... 12-004The Position under the Rom e I R egulation...................................................... 12 -011The Approach in the M em ber S tates..................................................................12-025Article 9(3) and the Sonderstatut T heory ..........................................................12-030The Relationship Between Art.6(2), A rt.8 (l) and A rt.9(1) and

(2 ) 12-046O verriding M andatory Rules o f Union Law O rig in ..................................... 12-057Ordre P u b lic ............................................................................................................... 12-070

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13. V o lun tary A ssignm ent, S u b roga tion , M u ltip le L iab ility A nd S et-O ff

A ssignm ent— Legislative History and Relationship to Art. 12 o f theRom e C onvention ............................................................................................... 13-001

A ssignm ent— Operation o f Art. 14 Scope

The Claim A ssigned ......................................................................................13-019Types o f A ssignm ent.................................................................................... 13-021Relationship Between A ssignor and A ssignee...................................... 13-022

Scope o f Art. 14(2).............................................................................................. 13-025The Future o f Art. 14: Third Parties and P riorities........................................ 13-044Legal S ubrogation ....................................................................................................13-045M ultiple L iab ility ..................................................................................................... 13-047Set-O ff..........................................................................................................................13-050

14. Scope o f Hie A pp licab le Law, V alidity an d P roo fScope o f the A pplicable Law

Introduction and Legislative H is to ry ............................................................14-001D rafting and Responses to the New P ro v is io n .............................................. 14-006Relationship to Art. 10 o f the Rom e C onvention............................................14-008Point (a): Interpretation.......................................................................................... 14-012Point (b): Perform ance............................................................................................14-026Point (c): Consequences o f B re a c h ....................................................................14-033

D am ages................................................................................................................. 14-040Point (d): The Various Ways o f Extinguishing Obligations,

Prescription and L im itation ..............................................................................14-045Consequences o f N ullity ........................................................................................ 14-050U nspecified M atters Governed by the Applicable L aw ...............................14-055Validity and P ro o f.................................................................................................... 14-059Existence and M aterial Validity........................................................................... 14-060Formal V alid ity ......................................................................................................... 14-071P roof............................................................................................................................. 14-077

15. F inal P rovisionsEntry into Force and A pp lication ....................................................................... 15-001O ther O bligations..................................................................................................... 15-003

P a r t 3T H E LAW A P P L IC A B L E T O N O N -C O N T R A C T U A L O B L IG A T IO N S

16. T h e Scope O f T h e Law A pplicab le To N o n -C o n trac tu a l O b liga tions

Introduction ................................................................................................................ 16-001Article 15(a)— Existence and Extent o f L iab ility ..........................................16-008Article 15(b)— Exem ption, Lim itation and Division o f

L iability ...................................................................................................................16-015

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Article 15(c)— Damage and R em edy ...............................................................16-028Interpreting Art. 15(e)— Textual D ifferences.............................................16-029The Existence, Nature and A ssessm ent o f D am ag e .............................. 16—037The Existence, Nature and Assessm ent o f C om pensatory

D am ages.......................................................................................................... ' 6 -040The Existence, Nature and A ssessm ent o f the R e m e d y ........................ 16-055

Article 15(d)— Prevention and Termination o f Injury and Damageand Ensuring Payment o f C om pensation................................................... 16-058

Article 15(e)— Transfer o f a Right to Claim D am ages...............................16-061Article 15(f)— Persons Entitled to Claim for Dam age Sustained

P ersonally .............................................................................................................16-067Article 15(g)— Liability for the A cts o f A nother P erson ........................... 16-069Article 15(h)— Extinguishm ent o f Obligations, Prescription and

L im ita tion .............................................................................................................16-071

17. T he Rom e II R egulation : L egislative H isto ry an d ScopeLegislative H istory.................................................................................................. 17-001Scope

Territorial S co p e ................................................................................................. 17-008Universal A pplication ........................................................................................17-009Temporal S co p e .................................................................................................. 17-018Material Scope

M atters to W hich the Regulation A p p lie s .............................................17-026“Non Contractual O bligations” ................................................................17-027“ In Civil and Com mercial M atters” ....................................................... 17-031“ In Situations Involving a Conflict o f Law s” ..................................... 17-039

Specific Exclusions........................................................................................... 17-043Family and Equivalent R ela tionsh ips....................................................17-045M atrimonial Property Regimes and S uccession..................................17-049Negotiable Instrum ents .............................................................................. 17-050Com pany L a w ............................................................................................... 17-051T rusts ................................................................................................................17-053N uclear D am age............................................................................................17-055Privacy, Personality and D efam ation..................................................... 17-060Evidence and Procedure............................................................................. 17-068

18. T he G en e ra l C hoice O f L aw Rule F or T o rt A nd DelictIn troduction ............................................................................................................... 18-001Article 4 o f the Rome II Regulation

The Law o f the Country o f the DamageThe Application o f Art.4( 1): General C onsiderations.......................18-007

Definition o f “ Dam age” ...................................................................................18-009Latent D am age.....................................................................................................18-017Country o f D am age........................................................................................... 18-022Damage Caused in M ore than One C ountry ..............................................18-026Torts Com m itted via the In ternet.................................................................. 18-028

M aritim e and Aerial Torts..................................................................................... 18-044Damage Occurring on the High S eas........................................................... 18-049

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Damage O ccurring in Territorial W aters......................................................18-052Dam age O ccurring in Zones in which States Exercise o f

Sovereign R ig h ts ............................................................................................18-054Aerial T o rts ........................................................................................................... 18-060

Particular TortsPersonal Injury, including Traffic A ccidents.............................................. 18-061

Torts to P ro p e rty .......................................................................................................18-065Reliance loss: Deliberate and Negligent M isstatem entPersonal

Injury or Damage to P roperty ....................................................................18-069Pure Financial L o ss ............................................................................................18-073Deliberate Dam age to Econom ic Interests: General

O bservations.................................................................................................... 18-084M alicious F alsehood.......................................................................................... 18-091Passing O f f ........................................................................................................... 18-095Procuring a Breach o f C ontract...................................................................... 18-096Protection o f Trade S ecre ts ............................................................................. 18-097Equitable O bliga tions........................................................................................ 18-098

The Exception: Law o f Com m on Habitual R esid en ce ................................ 18-100The Escape Clause: “M anifestly Closer Connection” ................................. 18-105

Rules o f Safety and C onduct...........................................................................18-120

19. P ro d u c t L iab ilityIntroduction ................................................................................................................ 19-001Background to A rt.5 o f the Rome II Regulation

The Prelim inary Draft R egulation................................................................. 19-008The Com m ission’s Proposal for the Rome II R egulation....................... 19-011

The Product Liability Regime Established by the Rome II RegulationIntroductory R em arks........................................................................................ 19-017Dam age Caused by a Product

Product Causing D am age............................................................................ 19-019Damage Caused by a P roduct....................................................................19-035

Those W hose Liability Falls Within the Scope o f A rt.5 ..............................19-044The Detailed Operation o f the Choice o f Law Rules in A rt.5

Introduction........................................................................................................... 19-048Article 14— The Law Selected by Agreem ent o f the

P arties................................................................................................................ 19-050Article 4(2)— The Law o f Habitual Residence o f Both

P artie s ................................................................................................................ 19-051Article 5(1 )(a)— The Law o f the Country o f Habitual Residence

o f the Person Sustaining the D am age..................................................... 19-054Article 5(1 )(b)— The Law o f the Country in which the Product

Was A cq u ired ..................................................................................................19-059Article 5 (l)(c )— The Law o f the Country in which the Damage

O ccurred ........................................................................................................... 19-064Article 5 (l)(a )-(c )— The “Product M arketed”-P rov iso .......................... 19-070

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Article 5(1) Second Sub-Paragraph— The Foreseeability Clause M ethodology and Relationship to the First

Sub-Paragraph............................................................................................ 19-102A rticle 5(2)— The Law o f the M anifestly M ore Closely

Connected C ountry .........................................................................................19-113O ther articles o f the Rom e II Regulation Significantly Related to the

Operation o f A rt.5Article 16— M andatory Product Safety and Liability

R u les ...................................................................................................................19-119The Rules o f the Product Safety D irective............................................ 19-120The Rules o f the Product Liability D irec tive ........................................19-121

Article 17— Rules o f Safety and Conduct o f the Country o f theEvent Giving Rise to the L iability ............................................................19—122The M eaning o f “Rules o f Safety and Conduct” ................................ 19-124The M eaning o f “The Event G iving Rise to the

Liability” ......................................................................................................19-126Article 17 Com pared with art.9 o f the Hague Products

Liability C onvention ................................................................................ 19-130The Relationship with Arts 4 and 7 o f the Rome II Regulation

The Relationship Between arts 4 and 5 ....................................................... 19-138The Relationship Between Arts 5 and 7 ...................................................... 19-140

The Relationship with the 1973 Hague Products LiabilityC onvention.............................................................................................................19-141

Some Final Observations on the Product Liability R e g im e .......................19-146

20. C om petitionLegislative H istory ...................................................................................................20-001The scope o f art.6 o f the Rom e II R egu la tion ............................................... 20 -006

U nfair C om petition.............................................................................................20 -007International C onventions...........................................................................20 -009U nfair Com petition Laws o f the M em ber States................................20-011

Provisions o f Union LawThe Unfair Com m ercial Practices D irec tiv e ........................................ 20-025

M isleading and Com parative A dvertising ...................................................20 -029Actions brought by Consum er Groups to Enforce Unfair

Com petition Law ............................................................................................20 -030Definition o f U nfair Com petition within the M eaning o f art.6 o f

the Rome II R egulation ................................................................................20-031A cts Affecting Exclusively a Specific C om petito r.................................. 20 -034Acts Restricting Free C om petition................................................................ 20-038Relationship Between art.6 and art.8 o f the Rom e II

R egu la tion ........................................................................................................20-042The Operation o f the Choice o f Law Rules o f article 6

U nfair C om petition .......................................................................................20-045Restrictions o f C om petition ....................................................................... 20 -054M arket D efin ition .......................................................................................... 20-055The Effects D octrine .................................................................................... 20-058Direct, Indirect and Consequential D am age......................................... 20 -060

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The Linie Between Public And Private Law and its Impact onthe O peration o f the Choice o f Law Rules in art.6 (3 )...................20-068

M ulti-State T o rts ........................................................................................... 20-070Article 6 (3 )(b ) ................................................................................................ 20-071

Article 6(4)— Exclusion o f Party A utonom y.............................................20-077O rdre Public..........................................................................................................20-080

Relationship Between Article 6 and the E-CommerceD irective.................................................................................................................20-081

N on-C ontractual L iability Claim s under National L aw .............................. 20-085The A pplication o f the National Law Designated by art.6(3) o f the

Rom e II Regulation when a Breach o f Union Com petition Law is in Issue ................................................................................................................... 20-090

21 . E n v iro n m en ta l D a m a g e ....................................................................................21-001Legislative H isto ry .................................................................................................. 21-002The Rule in A rt.7 .....................................................................................................21-004S co p e ............................................................................................................................21-005The Concept o f “Environm ental D am age” .....................................................21-008Dam age Sustained by Persons or Property as a Result o f

Environm ental D am age....................................................................................21-018Claim s for Com pensation by Public B o d ie s .................................................. 21-021The Basic Rule Designated by A r t .4 ( l ) ...........................................................21-024The Law o f the Place o f the Harmful E ven t.................................................. 21-029The A pplicability o f Art.7 to an Application for an

In junction .............................................................................................................. 21-031D eterm ination o f the A pplicable Law where the Situation Falls

under both Art.7 and A nother Special R eg im e.........................................21-032Freedom o f C hoice.................................................................................................. 21-037

22. In te llec tu a l P ro p e rty R ightsBackground

The Particular N ature o f Intellectual Property Rights and theIm pact o f International C onven tions......................................................22-001

Patent Litigation in England: The Traditional A pproach ............................22-004Legislative H istory o f the Rule in A rt.8 o f the Rome II

R egulation .............................................................................................................22-007Position under A rt.8 o f the Rom e II Regulation

S cope.......................................................................................................................22-009Definition o f Intellectual Property R igh ts....................................................... 22-010A pplicable Law

Basic R u le .............................................................................................................22-022U nitary C om m unity R ig h ts .............................................................................22-026Exclusion o f Party C hoice ............................................................................... 22-035Scope o f the A pplicable L a w ......................................................................... 22-036Im pact o f Union Law on the Free M ovem ent o f Goods on the

Intellectual Property Law o f the M em ber S tates.................................22-037

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Possible Interm ingling of Tortious Issues G overned by A it.8 of the Rom e II Regulation and Contractual or Proprietary Issu es ............................................................................................................... 2 2 - 0 4 1

23. In d u s tr ia l A ctionIn troduction .............................................................................................................. 23-001The Rule Adopted in the Rome II R egu la tion ..............................................23 -006

Scope: The Concept o f Industrial A ction.................................................. 23-007Applicable Law

Basic R u le...........................................................................................................23 -020The Law o f the Com mon Habitual R esidence.............................................23 -024Possibility o f Party C h o ice ...................................................................................23-025

24. U n just E n rich m e n tIn troduction.............................................................................................................. 2 4 -0 0 1Background to Art. 10 o f the Rom e II R egulation .......................................24-003

Article 10 o f the Regulation: S cope........................................................... 24-008M atters Expressly Provided Not to Pertain to “Unjust

enrichm ent” .......................................................................................................... 24 -009M atters W hich Pertain to “U njust Enrichm ent” ............................................24-022M atters W hich Arise from U njust E n rich m en t............................................. 24-025

The Boundary between Unjust Enrichm ent and C on trac t...................24-028The Boundary between Unjust Enrichm ent and T o rt........................... 24-035The Boundary between Unjust Enrichm ent and E qu ity ...................... 24 -036The Boundary between Unjust Enrichm ent and P roperty ...................24-042

(1) Constructive tru s ts ............................................................................ 24-047(2) Resulting T ru s ts ................................................................................. 24-065(3) Tracing and Follow ing ..................................................................... 24 -070(4) Unconscionable R e ce ip t..................................................................24 -074

Restitution for W rongs...........................................................................................24-082The Operation o f the Choice o f Law Rules in Art. 10

Article 10(1)— The Law o f the Pre-Existing Relationship betweenthe P artie s....................................................................................................... 24 -090

Article 10(2)— The Law o f Habitual R esidence........................................ 24-096Article 10(3)— The Law o f the Country in which the Enrichm ent

O ccu rred ..........................................................................................................24-101Article 10(4)— The Law o f the M anifestly More Closely

Connected C ountry ...................................................................................... 24-114

25. N egotiorum G estioIntroduction ...............................................................................................................25-001The Approach in the M em ber States

Introduction.......................................................................................................... 25-003Practice in the M em ber S tates........................................................................25 -005France, Belgium & L uxem bourg ..................................................................25 -006G erm a n y ............................................................................................................... 25-008N etherlands.......................................................................................................... 25 -010England & W ales................................................................................................25-013

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CONTENTS

N egotorium Gestio: A rt.l 1 o f the Rome II RegulationInterpretation........................................................................................................ 25-016

Negotiorum gestio and Unjust Enrichm ent.....................................................25-024English Dom estic Law and Art. 11......................................................................25-025The Choice o f Law Rules for Negotiorum gestio ......................................... 25-030Negotiorum gestio in the M aritim e C o n tex t.................................................. 25-043

26. C u lp a in C o n tra h en d oCulpa in Contrahendo

D efin ition .............................................................................................................. 26-001Choice o f Law Rules

W here the Law Applicable to the Contract can beD eterm ined ......................................................................................................26-019

W here the Law Applicable to the Contract Cannot beD eterm ined ......................................................................................................26-025

Country o f D am age ........................................................................................... 26-027Country o f Habitual R esidence............................................................................26-029Escape C la u se ...........................................................................................................26-031Party A u tonom y ....................................................................................................... 26-032

27. M a n d a to ry R ules A nd O rd re PublicIn troduction ............................................................................................................... 27-001O verriding M andatory R u le s ............................................................................... 27-005

O verriding M andatory Rules and the Rome II R egu la tion .................. 27-006C haracterisation o f a Rule as “O verriding M andatory

Rule” ..................................................................................................................27-009O verriding M andatory Rules o f Union Law O rig in .................................... 27-014Public Policy (“Ordre Public” )

Introduction...........................................................................................................27-018The Operation o f the Public Policy E xcep tion .........................................27-020K uwait A irways v Iraqi A irways (Nos. 4 & 5)— An Exam ple o f

the Public Policy E xclusion .......................................................................27-021The Effect o f the Public Policy Exclusion................................................. 27-029Exem plary (Punitive) D am ages......................................................................27-031

28. D irect A ctions A gainst In su re rsIn troduction ................................................................................................................28-001The Progress o f Drafting o f Art. 18 ................................................................... 28-008The Scope o f Art. 18................................................................................................28-010M otoring C la im s...................................................................................................... 28-018

29. F reedom to C hoose the A pp licab le LawIntroduction ................................................................................................................29-001The Progress in Negotiation o f Art. 14 ............................................................. 29-005Key Expressions

The P artie s............................................................................................................ 29-009The A g reem en t....................................................................................................29-010The Law C hosen ................................................................................................. 29-015

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CONTENTS

Agreem ents Made A fter the Event G iving Rise to theD am age...................................................................................................................29 -016

Agreem ents Made Before the Event G iving Rise to theD am age...................................................................................................................29 -017Pursuing a Com m ercial A ctiv ity ....................................................................29-018Freely N eg o tia ted ............................................................................................... 29-021

Choice Demonstrated with Reasonable C ertain ty ..........................................29-023Third P arties...............................................................................................................29 -024Preservation o f N on-D erogable R ules............................................................... 29 -026All O ther E lem en ts..................................................................................................29-027

Prejudicing the Application o f N on-D erogable R u les ............................ 29 -029Non-Derogable Provisions not to be Prejudiced....................................... 29-031

Preservation o f Provisions o f Union L a w ........................................................29 -032

PAGEIndex ......................................................................................................................................... 805

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