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The Young and the Restless: CESL and (the rest of) national law

The Young and the Restless: CESL and (the rest of) national law. Matthias E. Storme Full professor KU Leuven, Instituut commercial and insolvency law Symposium “ Hugh Beale and the CESL” Lincoln’s Inn London 23 may 2014. Some characteristics of CESL. Uniform law

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The Young and the Restless: CESL and (the rest of) national law

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  1. The Young and the Restless: CESL and (the rest of) nationallaw Matthias E. Storme Full professor KU Leuven, Instituut commercial andinsolvencylaw Symposium “HughBealeand the CESL” Lincoln’s Inn London 23 may 2014

  2. Somecharacteristics of CESL Uniform law Opt-in instrument (≠ CISG) Union law: • automatically part of domesticlaw • but also (secundary) Union law (≠CISG) with * priority over nationallawand ** subject toprimarylaw someunionrulescomenaked on the scene, others as CESL are already well vested

  3. Someeffects of supremacy CESL itselfand Union law in general: • determine the scope of CESL • determine the formationandvalidity of the choice /opting-in; exceptincapacityunder personal law (possibleexception: illegality or immorality of the choice (accordingto the chosenlaw) ?)

  4. “Scope” of CESL rationemateriae CESL(R) excludes the rules of the applicablenationallawwithinits scope (≠ CISG 7(2)) - art. 6 Rome-I-R is set asideby the CESLR itself (as lex posteriorandspecialisin relationto 27 Rome-I) • autonomousinterpretation, principles of interpretation of EU legislation > underlyingprinciplesandobjectives • no lacunaewithin the scope: eitheran explicit or implicitrule or party autonomy (subject to GF&FD)

  5. “Scope” of CESL rationemateriae Where lies the border between the (scope of) young CESL and the restless ghosts of nationallaw ? • additional defects of consent ? No, except conflict of interest (matter of representation > DCFR II-6:109) • additionalrules on unfair terms ? No • unfair tradepractices ? Distinguish (S. EP amendment 15) • additionalleniency of nationallaw ? No • délais de grâce • scheme of arrangement (?)

  6. “Scope” of CESL rationemateriae illegality or immorality: outside the scope • i & i under Union law: applies as Union law (eg trade embargo, money laundering, competitionlaw) • i & i undernationallaw: applies, but CESL determineswhetherit is a question of i & i – cfr. EP amendment 14. within the scope of CESL (inclwhere the reasonsfori&i are addressed in CESL), there is no placefor: - (other) nationaloverridingmandatoryprovisions - national public policy exception

  7. Outside the scope of CESL Still MS dutytogive full effect (art. 4(3) TFEU)! Insofar as the necessarymeasures are notcontained in CESL or other Union law In general: MS have toprovideeffectivejudicialprotectionandadd remedies wherenecessarytogive full effect Some EU rightsarrivenaked, CESL rights are already well vested. Compareotheroptionalinstruments (optional cross-border procedures, optionalIP’s, optionallegal persons)

  8. Principle of effectiveness National law must giveeffectiveand equivalent protection. Equivalence ? eg nationallaw on assignment Effectiveness ? Possibleexamples in mattersoutsidethe scope of CESL - Making the choicefor CESL illegal • Language requirements (C-202/11 Las) • Set-off • Concurrency of actions • Ex officio application

  9. EU Charter Art. 51 Charter (and 6 TEU) limits the relevance of the Charter But in applying the CESL, courts & institutions are boundby the Charter < Limitations of private autonomy have tobejustified: C-283/11 Skyösterreich

  10. Inländerdiskriminierung MS Option in art. 13 (1) CESLR • Toextend CESL todomesticcontracts Coulditbeunconstitutionalnottoexercise the option ? BelgianConst.C. 110/2001 NB. Extension of CESL under art. 13 is Union law, extension of CESL outside art. 13 is purelynationallaw (and Rome-I-R takes over)

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