Asymmetric jurisdiction clauses have been a common feature of English law finance agreements for many years. However, since Brexit, mutual exclusive, rather than asymmetric, jurisdiction clauses have become the preferred option in English law facility agreements with EU borrowers and guarantors. In January 2024, the UK signed the 2019 Hague Convention on the Recognition and Enforcement of Foreign Judgments in Civil and Commercial Matters (the 2019 Convention), which creates a broad framework for mutual recognition and enforcement of judgments between the courts of contracting states. The EU is already a contracting party. Will this signal a return to the use of asymmetric jurisdiction clauses in English law facility agreements with EU obligors?

Read the article