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20 June 2016
Issue: 7704 / Categories: Legal News
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Universal faces the music

Suffering financial damage in a member state is not enough, in itself, to justify the jurisdiction of that member state’s courts, the European Court of Justice (ECJ) has held.

Universal Music, a Netherlands company which forms part of Universal Music Group, bought a Czech company, B&M. A dispute between Universal and B&M’s shareholders went to arbitration in the Czech Republic, and settled. Universal then brought proceedings against its Czech lawyers in the Dutch courts, arguing that it suffered the financial loss in the Netherlands. The Supreme Court of the Netherlands sought guidance from the Court of Justice on the question of jurisdiction.

In Universal v Schilling (Case C-12/15), published last week, the court ruled that jurisdiction belongs to the member state in which the defendant is domiciled, as a general rule. In special cases, the courts where the harmful event occurred may have jurisdiction but these special rules of jurisdiction must be interpreted independently and strictly.

In this case, the court noted that the contract was negotiated and signed in the Czech Republic, and the mere fact Universal paid by a transfer from a Netherlands bank account was not enough to establish jurisdiction.

Issue: 7704 / Categories: Legal News
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MOVERS & SHAKERS

Constantine Law—Anita Vadgama

Constantine Law—Anita Vadgama

New senior partner hire at consultant-led employment / regulatory law firm

Ward Hadaway—Emma Swann & Jill Donabie

Ward Hadaway—Emma Swann & Jill Donabie

Firm adds two partners to growing education practice

mfg Solicitors—Lauren Collins, Emily Stancer & Sara Southall

mfg Solicitors—Lauren Collins, Emily Stancer & Sara Southall

Trio of newly qualified solicitors strengthens Worcester office law firm

NEWS
NLJ's latest Charities Appeals Supplement has been published in this week’s issue
The treasury has sought to reassure the legal profession over concerns about cost, bureaucracy and independence when the Financial Conduct Authority (FCA) takes over regulation of anti-money laundering compliance
One out of two barristers has come under pressure from clients to act unethically, according to the results of this year’s Barristers’ Working Lives survey
The Court of Appeal has held the Competition Appeal Tribunal (CAT) was wrong to set aside a Competition and Markets Authority (CMA) decision on unfair pricing of phenytoin, an epilepsy drug
A flagship employment law reform is due to come into effect on 1 July, extending unfair dismissal rights to employees after six months in their job instead of two years
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