First CJEU Ruling On Asymmetric Jurisdiction Clauses Under Brussels Recast

In the recent case of Case C-537/23 Società Italiana Lastre SpA v Agora SARL, the Court of Justice of the European Union (CJEU) decided that an asymmetric choice of court clause is valid under Article 25 of the Brussels Recast Regulation if (i) it is limited to EU or Lugano State courts and (ii) it identifies objective factors that are sufficiently precise to enable the court seised to decide if it has jurisdiction.

In this article we consider the key aspects of the judgment, the questions that remain unresolved, and the implications for finance parties when drafting jurisdiction clauses in international finance transaction documents.

Why are jurisdiction clauses important?

Jurisdiction clauses are used to determine how and where any disputes relating to the agreement will be resolved. If there is no effective jurisdiction clause, the correct forum for the determination of a dispute will be decided by reference to rules of private international law. This can