CONFLICT OF LAWS

Second Edition

John O'Brien, MA, LLB, LLM, BarristerLecturer in Law, University of Hertfordshire

CavendishPublishing

Limited

London • Sydney

CONTENTS

Preface viiTable of Cases xxvTable of Statutes IxiTable of European Legislation IxxiiiTable of Other Legislation IxxviiiGlossary Ixxix

PARTI

1 INTRODUCTION 3

INTERNATIONAL LAW 3

THE CONFLICT OF LAWS 5

THE RATIONALE 7

THE HISTORY 10

THE CONTENT 16Introduction 16Jurisdiction 17Classification 20Choice of law 22Application of law 24Foreign judgments 25Proof of foreign law 26Jurisdiction selection and rule selection 26True and false conflicts 28

THE CHANGING NATURE OF THE SUBJECT 29

2 THE POSSIBILITIES FOR CHOICE OF LAW 33

INTRODUCTION 33

THE PERSONAL LAW 34The national law 35The domestic law 36

Presence 37Residence 37

Habitual residence 39Domicile 41The religious law 42Conclusion 43

Conflict of Laws

THE LAW OF THE PLACE 45Introduction 46Lex loci celebrationis 46Lex loci contractus 47Lex loci solutionis 48Lex loci delicti commissi 49Lex situs 50Conclusion 52

THE TRANSACTIONAL LAW 52What connections are relevant? 53Do only factual connections count? 54How are the contacts to be weighed? 55

THE LAW CHOSEN BY THE PARTIES 56

MORE SOPHISTICATED APPROACHES 59

CONCLUSIONS 63

3 DOMICILE 65

THE NATURE OF DOMICILE 65

THE PRINCIPLES OF THE LAW OF DOMICILE 66

THE DOMICILE OF CHOICE 67General principles 67Particular cases 74

The terminally ill 74Prisoners 75Refugees 75Fugitives from justice 75Invalids 75Diplomats, employees, military forces 76

THE DOMICILE OF ORIGIN 76General principles 76The enduring nature of the domicile of origin ''Revival of the domicile of origin 79

THE DOMICILE OF DEPENDENCE 8 0

Married women 81Children 8 2

Mental disorder 83

Contents

THE NATURE OF CORPORATE PERSONALITYPresenceResidenceDomicileNationality

REFORM OF THE LAW OF DOMICILE

NATIONALITY AND HABITUAL RESIDENCE

8484848585

86

88

4 CLASSIFICATION 91

INTRODUCTION 91

CLASSIFICATION AS TO THE CAUSE OF ACTION 93

CLASSIFICATION OF CONNECTING FACTORS 94

CLASSIFICATION OF A RULE OF LAW 95Classification of a rule of English law 96Classification of a rule of foreign law 97

The requirement of parental consent 97Bona vacantia 98Other instances 99

THEORIES AS TO CLASSIFICATION 99

5 THE INCIDENTAL QUESTION 103

WHAT IS AN INCIDENTAL QUESTION? 103

THE EXPERIENCE OF THE CASE LAW 106Cases concerning remarriage 106Succession 109

DEPECAGE 109

6 SUBSTANCE AND PROCEDURE 113

THE DISTINCTION BETWEEN SUBSTANCE AND PROCEDURE 113

STATUTES OF LIMITATION 115The experience at common law 115The statutory regime 118

THE LAW OF EVIDENCE 119

Conflict of Laws

The admissibility of evidence 119Witnesses 120The burden of proof 120Presumptions 121Evidence and other jurisdictions 121

PARTIES 122

THE NATURE OF THE REMEDY 123

DAMAGES 124Remoteness of damage 125Measure of damages 126

JUDGMENTS IN A FOREIGN CURRENCY 127The old rule at common law 127The evolution of the Miliangos rule • 128Part I of the Private International Law

(Miscellaneous Provisions) Act 1995 131

7 RENVOI 133

INTRODUCTION 133

POSSIBLE APPROACHES TO RENVOI 134Apply the internal law: the rejection of renvoi 135Partial or single renvoi 136Total renvoi 137

THE APPLICATION OF THE DOCTRINE OF RENVOI 139

THE ADVANTAGES AND DISADVANTAGES OF RENVOI 140

8 THE PROOF OF FOREIGN LAW 145

THE NATURE OF FOREIGN LAW I 4 5

HOW FOREIGN LAW IS PROVED I 4 6

WHO CAN TESTIFY AS TO FOREIGN LAW? 147

THE ROLE OF THE COURT IN RESPECT OF FOREIGN LAW 148

OTHER STATUTORY PROVISIONS 1 4 9

Contents

9 EXCLUSION OF FOREIGN LAW 151

INTRODUCTION 151

FOREIGN REVENUE LAWS 152The prohibition on direct enforcement 152The prohibition on indirect enforcement 153Recognition of a foreign revenue law 154

FOREIGN PENAL LAWS 155The prohibition on the enforcement of foreign penal laws 155Examples of the prohibition on the enforcement of a penal law 156

OTHER PUBLIC LAWS 158

FOREIGN EXPROPRIATION LEGISLATION 160

FOREIGN LAWS CONTRARY TO ENGLISH PUBLIC POLICY 167Where English conceptions of morality are violated 169Where English conceptions of justice are violated 169Where the contract prejudices the UK in its conduct

of foreign affairs 170Where a foreign law or a status violates English

conceptions of human rights 170

PART II

10 THE JURISDICTION OF THE ENGLISH COURTS:AN INTRODUCTION 175

PRELIMINARY MATTERS 175

CRIMINAL JURISDICTION 177

CrVTL JURISDICTION IN ENGLAND 178Civil actions generally 178

The different regimes 179Jurisdiction under the traditional rules 179Jurisdiction under the Brussels Convention 180Jurisdiction under the Modified Convention 180Jurisdiction under the Lugano Convention 180

Conflict of Laws

11 JURISDICTION: THE TRADITIONAL RULES

INTRODUCTION

PRESENCEIndividualsPartnershipsCorporations

SUBMISSION TO THE JURISDICTION

THE EXTENDED JURISDICTION UNDER THE RULES OFTHE SUPREME COURTThe general principlesThe specific categories

181

181

181182184184

186

188188190

12 STAYS OF ENGLISH PROCEEDINGS AND THERESTRAINING OF FOREIGN PROCEEDINGS 199

STAYS OF ENGLISH PROCEEDINGS 199Forum non conveniens 199Where there is a foreign jurisdiction clause 207

THE RESTRAINING OF FOREIGN PROCEEDINGS 210Introduction 210The infringement of a legal or equitable right 212The bringing of proceedings abroad would be

unconscionable 213

STAYS OF ENGLISH PROCEEDINGS AND RESTRAININGFOREIGN PROCEEDINGS UNDER THE TERMS OF THEBRUSSELS AND LUGANO CONVENTIONS 218

13 JURISDICTION UNDER THE BRUSSELS ANDLUGANO CONVENTIONS 223

THE BRUSSELS CONVENTION 223Introduction 223Interpretation 224The ambit of the Conventions 226Civil and commercial matters 227The domicile of the defendant 230The general basis of jurisdiction under the Brussels

Convention 1968 and the Lugano Convention 1988 231

Contents

Special jurisdiction under the Brussels Convention 1968and the Lugano Convention 1988ContractsMaintenanceTortsCompensation orders from criminal courtsDisputes arising out of the operation of a branch

or agency or other establishmentTrustsMultiple defendantsInsuranceConsumer contracts

Exclusive jurisdictionProrogation of jurisdiction

SubmissionAgreements on jurisdiction

The role of the court under the Brussels Convention

THE MODIFIED CONVENTION: ALLOCATION OFJURISDICTION WITHIN THE UK

THE LUGANO CONVENTION

14 RECOGNITION AND ENFORCEMENT OF FOREIGNJUDGMENTS: THE TRADITIONAL RULES

INTRODUCTION

THE THEORETICAL BASIS FOR RECOGNITIONAND ENFORCEMENT

THE RECOGNITION AND ENFORCEMENT OF JUDGMENTSAT COMMON LAWThere must be a court of competent jurisdiction

IntroductionResidencePresence or residence of corporationsSubmission

The judgment must be final and conclusiveThe judgment must be for a fixed sum

DEFENCES AND NON-DEFENCES TO RECOGNITIONAND ENFORCEMENTIntroductionNatural justiceFraudRecognition contrary to public policy

233234236237239

240241241243244245251252253255

257

258

261

261

263

264265265266267269271272

274274275277281

Conflict of Laws

Conflicting judgments 282Judgment invalid under foreign law because of lack of

internal competence. 282A foreign judgment given in breach of an arbitration or

jurisdiction clause 283Multiple damages 284Discovery of fresh evidence 284

STATUTORY REGIMES FOUNDED UPON COMMON LAW 285Introduction 285Administration of Justice Act 1920 285Foreign Judgments (Reciprocal Enforcement) Act 1933 287

15 RECOGNITION AND ENFORCEMENT UNDER THEBRUSSELS AND LUGANO CONVENTIONS 291

INTRODUCTION 291

JUDGMENTS FALLING WITHIN TITLE ffl 292

RECOGNITION AND ENFORCEMENT 294

DEFENCES TO RECOGNITION AND ENFORCEMENT 296Public policy 296Natural justice 298Irreconcilable judgments 301Rulings on preliminary issues 302Appeals and other matters 303Relationship with other conventions 303

THE LUGANO CONVENTION 304

THE RECOGNITION AND ENFORCEMENT OF JUDGMENTSWTTHINTHEUK 305

PART III

16 THE LAW OF CONTRACT 307

INTRODUCTION 307

THE COMMON LAW APPROACH 309Express choice of law 309Implied choice of law 311Closest and most real connection 312Conclusion 313

Contents

THE ROME CONVENTION 314The scope of the Rome Convention 315Questions involving the status or legal capacity of natural

persons, without prejudice to Art 11 318Matters relating to wills, succession, matrimonial property

and family relationships 319Bills of Exchange, cheques and negotiable instruments 320Arbitration agreements and agreements on the choice of court 321Corporate and incorporate status 322Agency 323Trusts 323Evidence and procedure, without prejudice to Art 14 324Contracts of insurance covering risks in the European

Community 324Nullity 325

Interpretation 325The universal nature of the Rome Convention 327

THE CHOICE OF THE GOVERNING LAW 328Express choice 328Choice demonstrated with reasonable certainty 331

The use of a standard form of contract 331When there are previous dealings between the parties 331Where there is a jurisdiction or arbitration clause 332Where a connected transaction includes an express

choice of law 332Where a contract expressly incorporates the rules

of a foreign legal system 333Splitting the applicable law 333Variation of choice 334Limitation on choice - single country contracts 335

THE APPLICABLE LAW IN DEFAULT OF CHOICE 339Presumption one - characteristic performance 340Presumption two - immovable property 342Presumption three - carriage of goods 343Non-application of the presumptions 344

THE SCOPE OF THE APPLICABLE LAW 345

PARTICULAR ASPECTS OF THE CONTRACT 347Material validity 347Formal validity 349Capacity 350

xvu

Conflict of Laws

MANDATORY RULES AND PUBLIC POLICY 351Mandatory rules 351

Article 7(1) 353Article 7(2) 354Where the statute contains no express provision as

to territorial ambit and no express provision as tooverriding rules 356

Where the statute expressly indicates that it is not tohave an overriding effect 356

Where the statute has an express provision as to itsterritorial scope but has no reference to overriding effect 356

Where the statute expressly provides that the overridingeffect is subject to limits 357

Where the statute expressly provides that theoverriding effect is absolute 357

Public policy 358

PARTICULAR CONTRACTS 360Consumer contracts 361Individual employment contracts 365

17 THE LAW OF TORT 371

INTRODUCTION 371

THE NATURE OF TORTIOUS LIABILITY 372

THE POSSIBLE APPROACHES 373

TORTS COMMITTED IN ENGLAND 375

THE PLACE WHERE THE TORT WAS COMMITTED AND THEPOSSIBLE LAWS 376The place where the tort is committed 376Theories as to the appropriate law 378

The law of the forum (lexfori) 379The law of the place of the tort (lex loci delicti commissi) 379The proper law of the tort 380

FOREIGN TORTS: THE POSITION AT COMMON LAW 381

THE JUDGMENT IN BOYS V CHAPLIN 388

THE COMMON LAW AFTER BOYS V CHAPLIN 394

THE CASE FOR REFORM 397

Contents

PRIVATE INTERNATIONAL LAW (MISCELLANEOUSPROVISIONS) ACT 1995The scope of P tmThe choice of law rulesThe exclusion of defamationPublic policyConclusion

THE RELATIONS BETWEEN CONTRACT AND TORT

400400401404404405

405

18 MARRIAGE 409

INTRODUCTION 409

THE CONCEPT OF MARRIAGE 410Voluntary 411Union 413For life 413Of one man and one woman 414To the exclusion of all others 416

CLASSIFICATION AND DEFECTS 416Void and voidable marriages 417Distinctions 419Particular cases 421

Parental consent to marry 421Proxy marriages 423

FORMAL VALIDITY 423The general principle in favour of the lex loci celebrationis 423Common law exceptions to compliance with the

lex loci celebrationis 426Where there are insuperable difficulties in complying

with the local law 427Marriages in countries under belligerent occupation 427

Marriages on the high seas 428Statutory exceptions 429

Consular marriages 429Marriages of members of British forces serving abroad 430

Renvoi 430

The role of the lex loci celebrationis 431

Conflict of Laws

ESSENTIAL VALIDITY 431The choice of law rules in respect of essential validity 432

The dual domicile doctrine 432The intended matrimonial home doctrine 434Combining the tests 436Real and substantial connection 437Validity under a single law 437A variable rather than a single rule 438

The lexfori and essential validity 439Defects and impediments 440

Consent of the parties 440Impotence and wilful refusal to consummate 442Parental consent 444Lack of age 445Prohibited degrees of relationship 447Previous marriage 448

Where the divorce is recognised in England but notby the law of the domicile 449

Where the divorce is recognised by the law of thedomicile but not by English law 451

Restrictions on the marriage of divorced persons 451Capacity to contract a polygamous marriage 452

POLYGAMOUS MARRIAGES 452Introduction 452Capacity of persons domiciled in England to contract

polygamous marriages 454Change in the nature of the marriage 459

Polygamy to monogamy 459Monogamy to polygamy 461

Recognition of polygamous marriage 462

19 MATRIMONIAL CAUSES 465

JURISDICTION OF THE ENGLISH COURTS 465Introduction 465Staying proceedings 467

Obligatory 468Discretionary 468

CHOICE OF LAW 471Divorce and separation 471Nullity 473

Contents

THE RECOGNITION OF DIVORCES AND LEGALSEPARATIONS 476Introduction 476The historical background 476Judicial divorces under the Family Law Act 1986 479

UK divorces 479Overseas divorces 479Extra-judicial divorces under the Family Law Act 1986 482

Transnational divorces 487

RECOGNITION OF FOREIGN NULLITY DECREES 489

REFUSAL OF RECOGNITION OF FOREIGN DIVORCES,ANNULMENTS AND LEGAL SEPARATIONS 490Resjudicata 490No subsisting marriage 491Want of notice of the proceedings 491Denial of an opportunity to take part in proceedings 492Absence of documentation in non-proceedings cases 492Recognition contrary to public policy 493

20 CHILDREN 495

INTRODUCTION 495

LEGITIMACY 495Introduction 495The recognition of the status of legitimacy 497Succession by legitimate persons 501Legitimation 503Recognition of foreign legitimations at common law 503Legitimation by statute under domestic law 505Recognition of foreign legitimations by statute 505Succession by legitimated persons 507

ADOPTION 508Introduction 508Jurisdiction to make an adoption order in England 509Convention adoptions 511Recognition of foreign adoptions 512The effect of a foreign adoption order 514

Conflict of Laws

CUSTODY 515Introduction 515Jurisdiction 516

Matrimonial proceedings 517Habitual residence 518The residual presence basis 518Emergency jurisdiction 518Declining jurisdiction and stays of proceedings 519Guardianship and inherent jurisdiction 519

Choice of law 520Recognition of foreign orders and the problem of abduction 521

Introduction 521The criminal law 522UK orders 523

The international aspect 523The Hague Convention on the Civil Aspects of Child

Abduction 1980 523Non-convention countries 531

DECLARATIONS 531Declarations as to marital status 532Declarations of parentage, legitimacy and legitimation 533Declarations as to foreign adoptions 533Effect of declarations 533

21 PROPERTY 535

JURISDICTION AND CHOICE OF LAW IN THELAW OF PROPERTY 535Introduction 535The distinction between movable and immovable property 536Jurisdiction of the English courts in property cases 541

The rules at common law 541The exceptions to the Mocambique rule 543The relevance of the Brussels Convention 546

General principles of the English conflict of laws on property 546

IMMOVABLE PROPERTY 549Jurisdiction 549Choice of law 549

The general presumption in favour of the lex situs 549Capacity to take and transfer immovables 551Formalities of alienation 553Contracts 553

Contents

THE TRANSFER OF TANGIBLE MOVABLESIntroduction

The law of the domicileThe law of the place of the act (lex loci actus)The proper law of the transfer (lex actus)The law where the chattel is situated (the law of the situs)

The operation of the general principle in favour of the lex situsThe meaning of the expression, 'the law of the situs'Change of situsReservation of titleGiftsState seizure

THE ASSIGNMENT OF INTANGIBLE MOVABLESIntroductionThe administration of estates

The lex situsThe lex actusThe proper law of the debtThe situs of an intangible movable

Voluntary assignmentsAssignability: is the interest assignable at all?The validity of the assignment: the contractual questionThe assignment: proprietary questions

Involuntary assignments

SUCCESSIONIntroduction

JurisdictionObtaining an English grantThe effect of an English grantChoice of lawForeign administratorsCommonwealth and other UK grants

Testate successionMovable property

The formal validity of willsCapacityInterpretationEssential validityRevocation

Immovable propertyImmovable property in EnglandForeign immovables

554554555556556557557560562563565565

567567577568568569570571571571573575577577577578578580580581582582582584585585587590590591

Conflict of Laws

Intestate succession

FAMILY PROPERTYIntroductionWhere there is no marriage contract or settlementWhere there is a marriage contract or settlement

FormalitiesCapacityEssential validity

TRUSTSIntroductionChoice of lawScope of the applicable lawThe recognition of trusts

The general provisionsExceptions

The variation of trusts

BibliographyIndex

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