A Seat At The Table: Third Parties And Exclusive Jurisdiction Clauses

The High Court has looked at when a third party can rely on (and be bound by) an exclusive English jurisdiction clause in Campeau v Gottex.

Director seeks to enforce third party rights

The case concerned a sale and purchase agreement with an exclusive English jurisdiction clause and which granted an indemnity to a director not party to the agreement.

The seller, Gottex, brought claims in Luxembourg alleging fraud and negligence by Mr Campeau which, it said, had caused the sale to be undervalued. As well as objecting to jurisdiction in those proceedings, Mr Campeau served English proceedings, out of the jurisdiction, to enforce his third party rights. The seller applied in England to set aside service on the basis that Mr Campeau could not rely on a jurisdiction clause in an agreement to which he was not party.