Jurisdiction Clause In A Contract

11th September 2018
Contracts

  

In cases where the parties expressly agreed to refer disputes arising out of the contract to a foreign jurisdiction or to arbitration the Court will generally assert that the agreement be honoured.

The grounds for challenging jurisdiction will largely depend on whether the defendant was served within the jurisdiction or outside the jurisdiction. In both cases, the defendant may argue that:

  • Service was defective.
  • Another court has jurisdiction over the claim under a choice of court agreement.
  • Cyprus is not the appropriate forum for the resolution of the dispute.
  • The same, or related proceedings are pending in the courts of another country.

Where the defendant was served outside the jurisdiction, he may also be argue that permission to serve the proceedings outside the jurisdiction should not have been granted in the first place.

Furthermore, Regulation (EU) 1215/2012 on jurisdiction and the recognition and enforcement of judgments in civil and commercial matters (Brussels Regulation) gives the Cyprus Courts exclusive jurisdiction over the following:

  • An action in rem (that is, relating to a right that is enforceable against the asset itself) against real property (including ships) located in Cyprus and tenancies, for more than six months, of real property located in Cyprus.
  • Actions regarding the dissolution of Cyprus companies or the validity of their constitution.
  • The validity of entries in the public registries of Cyprus, apart from the validity of European patents in relation to which the courts in all member states have jurisdiction.
  • Proceedings for the enforcement of judgments in case the forum where the judgment has been, or is to be enforced is the Cyprus courts.

However the Brussels Regulation applies only if the parties are domiciled in countries that are bound by the regulation.

More News

Go to all News