Jurisdiction and Conventional Derogation: Commentary on Judgment No. 15389/2024

The recent Ordinance No. 15389 of June 3, 2024, issued by the Court of Cassation, provides important insights on jurisdiction and the possibility of conventional derogation in favor of a foreign judge. In an increasingly globalized context, the issue of jurisdiction becomes crucial, especially when the parties involved in a dispute are located in different jurisdictions.

The Regulatory Context

The judgment in question fits within the regulatory framework outlined by Law No. 218 of May 31, 1995, which governs civil jurisdiction in Italy. In particular, Article 3 of this law states that it is possible to derogate from Italian jurisdiction in favor of a foreign judge, provided that such derogation is in writing and that the case does not concern non-disposable rights.

In the specific case, the Court had to examine a situation in which a defendant, residing in Italy, contested Italian jurisdiction in favor of the Dubai Court, claiming the existence of an agency contract with a party based in the United Arab Emirates. The Court deemed this challenge admissible, emphasizing that the effect of the foreign forum selection clause binds the Italian judge to decline its jurisdiction.

The Maxim of the Judgment

Defendant residing or domiciled in Italy - Conventional derogation in favor of a foreign judge - Prior challenge to Italian jurisdiction - Admissibility - Effects of the derogation - Exclusivity of the foreign forum - Conditions - Specific case The defendant residing or domiciled in Italy is allowed to challenge Italian jurisdiction based on a conventional derogation in favor of the jurisdiction of the foreign judge, provided that this is in writing and the case does not involve non-disposable rights; under these conditions, the "negative" effect of the foreign judge selection clause binds the Italian judge to decline its jurisdiction, without the possibility of assessing the option expressed by the parties. (In this case, the Supreme Court declared the jurisdiction of the Dubai Court, in response to the exception raised in opposition to the injunction by the Italian company, based on a written agency contract concluded with a party based in the United Arab Emirates).

This maxim clearly highlights the importance of drafting contracts with well-defined forum selection clauses, as they can drastically influence the competent jurisdiction in case of disputes.

Conclusions

In conclusion, Judgment No. 15389 of 2024 from the Court of Cassation stands as an important precedent regarding jurisdiction and conventional derogation. It reiterates the necessity of formalizing such derogations in writing and clarifies that, in the absence of non-disposable rights, the Italian judge is bound to respect the will expressed by the parties. This ruling not only emphasizes the importance of contractual clarity but also provides a useful reference for businesses operating internationally, encouraging them to carefully consider the legal implications of forum selection clauses in their commercial transactions.

Bianucci Law Firm