The Price Of Flexibility: Asymmetric Clauses And Parallel Proceedings

Key Takeaways

• Whilst asymmetric jurisdiction clauses can give rise to parallel proceedings in different jurisdictions, the English Court will be reluctant to stay proceedings on the basis of a jurisdiction clause that contemplates that exact scenario arising, in the absence of strong reasons. Parallel proceedings are not inherently oppressive, and the Court will be unlikely to depart from parties’ contractually agreed positions, even where it might be objectively sensible to do so.
• Parties should be careful to understand exactly what dispute resolution provisions they are agreeing to and remember that the Court will not “save” them from reasonably foreseeable risks, which can be mitigated by careful drafting.