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ARTICLE · 21 DECEMBER 2012

Fried Frank International Arbitration Newsletter, December 2012

Fried Frank Harris Shriver & Jacobson
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A unilateral jurisdiction clause is a dispute resolution clause that gives one party a jurisdictional option that the other party does not have.

United StatesLitigation, Mediation & Arbitration

Unilateral Jurisdiction Clauses Undermined in Russia, France

A unilateral jurisdiction clause is a dispute resolution clause that gives one party a jurisdictional option that the other party does not have. For example, a clause could provide for disputes to be resolved by international arbitration but, in addition, give only one of the parties a unilateral option to refer disputes to a competent national court instead of resorting to arbitration. Or, a clause could provide for disputes to be resolved in the courts of a certain jurisdiction, but give one of the parties an option to resort to a court of another jurisdiction. Such unilateral clauses are commonly used in international financing agreements, where the lenders wish to have flexibility to resort to litigation or arbitration, or choose a venue for litigation to recover amounts due. However, recent decisions by the Supreme Arbitration Court of the Russian Federation and the French Cour de Cassation

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