Applicable law in non-contractual disputes

This Overview considers the applicable law regimes when determining the applicable law in a non-contractual dispute.

For guidance on other aspects of determining the applicable law, see:

  1. Applicable law principles—overview

  2. Determining applicable law in contractual disputes—overview

The applicable law is only one consideration when dealing with a cross border dispute. For an insight into the various considerations, see: Cross border considerations—checklist.

How applicable law is determined

The applicable law regime applied by the courts of England and Wales (English courts) to determine the applicable law in non-contractual disputes will depend upon the date on which the harmful event complained of occurred and whether the proceedings fall within the relevant regime:

  1. 1 January 2020 onwards—UK Rome II, Regulation (EC) 864/2007 on the Law Applicable to Non-contractual Obligations (UK Rome II)

  2. 11 January 2009 to 31 December 2020 at 11 pm—Regulation (EC) 864/2007, Rome II (UK only) which applies in the UK to transitional provisions under Article 66 of the Withdrawal Agreement. For guidance, see Practice Note: Brexit post implementation period—considerations for dispute resolution practitioners, specifically, main

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Third party costs—Court of Appeal confirms stay pending detailed assessment is case management decision (Federal Republic of Nigeria v VR Global Partners LP)

Dispute Resolution analysis: The Court of Appeal has upheld the decision of a judge at first instance to stay an application for a third-party costs order under section 51 of the Senior Courts Act 1981 until after the conclusion of the detailed assessment of the underlying bill of costs. Dismissing Nigeria’s appeal, the Court of Appeal held that there is no presumption that a third-party costs application should be determined before a detailed assessment. The question is purely one of case management, to be decided in accordance with the interests of justice and the overriding objective. The decision, being within the scope of discretion allowed a judge, was not amenable to appeal; that a different judge would have reached a different conclusion was not in point. Where there is a real question whether any further sum will be payable following assessment (particularly where a substantial payment on account has already been made and costs are to be assessed on the standard basis), it is legitimate to stay the third party application to avoid wasting court resources on what may prove to be a pointless satellite exercise. Of general and at least equal significance to costs practitioners were the Court of Appeal’s strong comments (obiter dicta in strict terms) deprecating disproportionate detailed assessment processes and endorsing the use of sampling as a case management tool in cases involving very significant bills of legal costs. Written by Lauren Godfrey, barrister at Gatehouse Chambers.

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