Q&As

If an oral agreement for a loan is made in a foreign jurisdiction, can a claim for repayment of the loan be brought in the English courts?

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Published on LexisPSL on 05/06/2018

The following Dispute Resolution Q&A provides comprehensive and up to date legal information covering:

  • If an oral agreement for a loan is made in a foreign jurisdiction, can a claim for repayment of the loan be brought in the English courts?
  • Jurisdiction
  • If the defendant is living in the UK
  • Exceptions
  • Special jurisdiction
  • If the defendant is living in the US
  • Disputing jurisdiction

If an oral agreement for a loan is made in a foreign jurisdiction, can a claim for repayment of the loan be brought in the English courts?

Jurisdiction

If the defendant is living in the UK

Whether the English court would have jurisdiction of the dispute needs to be considered under the provisions in EU regulation, Regulation (EU) 1215/2012, Brussels I (recast). The domicile of the defendant is important and when dealing with individual defendants, Article 4 of Regulation (EU) 1215/2012, Brussels I (recast) sets out the general rule that proceedings should be commenced in the country of the defendant's domicile. It provides that:

‘Subject to this Regulation, persons domiciled in a Member State shall, whatever their nationality, be sued in the courts of that Member State.’

See Practice Note: Brussels I (recast)—domicile (arts 4 and 63) for further information.

Exceptions

It is important to be aware of the remit of the provisions in Article 24 of Regulation (EU) 1215/2012, Brussels I (recast) are mandatory and provide that, in specific instances, the courts in a specific jurisdiction will have exclusive jurisdiction regardless of either the

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