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GAZETTE

SEPTEMBER

1989

Article 5.1 of the Brussels

Convention

The importance for day-to-day

practice of the "Convention on

Jurisdiction and the Enforcement

of Judgments in Civil and Com-

mercial matters with protocol,

Brussels, September 27 1968",

known as the Brussels Convention,

is ever increasing, especially since

the accession of the United

Kingdom on January 1st, 1987.

Also in that month the European

Court of Justice rendered a

judgment of great importance for

the legal practitioner, interested in

international litigation.

It must be known even to

beginners, that in principle a judg-

ment in civil and commercial

matters, given in an EEC-country

can easily be enforced in another,

as long as

jurisdiction

of the first

judge is based on the Convention.

Once the first judge has established

his competence on the basis of the

Convention, the judge of the

country where the judgment has to

be enforced is usually bound by it.

The most important rules con-

cerning jurisdiction are laid down in

section I, the General Provisions,

where in article 2 the forum rei is

to be found, and section 2, Special

Jurisdiction of which article 5

paragraph 1 wi ll be f ur t her

analysed hereafter. Finally, sections

3, 4 and 5 provide for some other

jurisdictional rules, which fall

outside the scope of this article.

Article 5.1

Before the coming into force of the

Accession Convention, meant to

regulate the accession of the

United Kingdom and Northern

Ireland, the Irish Republic and

Denmark, but which also contained

some material changes, there

existed a disparity between texts in

various languages.

The text goes as follows:

A person

domiciled

in a

contracting state may, in another

contracting state be sued:

1. in matters relating to a contract,

in the court for the place of

performance of the obligation

in Question.

In the French and Dutch text

words similar to the ones underlined

above were absent.

Moreover, jurisdiction established

by the performing of an obligation

was thus far unknown in several

convention states.

The article therefore gave rise to

considerable controversy.

It was to be expected that the

Court was soon to be seised in

By

John M. Bosnak*

order to deal with this article.

Obviously, it had become very

popular because it is an attractive

thought for a plaintiff to try and play

a home game by means of this

article. However, one encountered

at least two pitfalls:

What is meant w i th " t he

obligation" (A), and what is the

"place of performance" (B)? These

problems are sometimes referred to

as respectively the problem of

identification

and

localisation

of the

obligation as meant in the article.

Jurisprudence

On both problems the Court handed

down a judgment on October 6th

1976, the first judgments on the

basis of the Brussels Convention.

These judgments must have

become familiar even to beginners:

the twin judgments

De Bloos/

Bouyer

concerning pitall (A) and

Tessi/i/Duniop

on pitfall (B).

Here follows a brief summary of

the contents of the judgments,

a. "The obligation" is the con-

tractual obligation which is the

basis of the action, the

litigious

obligation therefore. As the

result of this clarification by the

Court the Dutch and the French

texts of the original Brussels

Convention were modified by

the Accession Convention.

Literally translated the Dutch

text now reads ". . . . of the

obligation,

on which the claim is

based, is performed or has to be

performed".

In French: "

It should be noted that a

litigious obligation is also the

obligation, which according to

the plaintiff has

not

been fulfilled,

b. "Place of performance": this

has to be established according

to the rules of Private

International Law as applied by

the court seised.

This implies that this judge

first has to find out which law

he would apply, should he have

jurisdiction and, subsequently,

whether according to this law

the place of performance of the

litigious obligation is within his

jurisdiction.

Example: should I claim, as a

seller, payment of the purchase

price, then payment is the

litigious obligation, the form of

the place where payment had to

be effected is competent ex

article 5.1. Should I, as a

purchaser, claim annullment of

the purchase agreement, on the

basis of breach of contract, then

delivery is the litigious obligation

and the forum, where such

delivery had to take place or has

taken place has jurisdiction.

Plurality of obligations

At first glance, the problems

seemed to be solved by these

decisions. However, there was

some reason to doubt whether the

front was to remain silent.

In

re De Bloos,

as it happened,

the Court had also held:

"that in

case of claims for payment of

additional compensation the national

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