The "Party Scope" of exclusive jurisdiction clauses: Global Partners Fund Ltd v Babcock & Brown Ltd

• Main Author: CHONG, Adeline
• Format: text
• Language: English
• Published: Institutional Knowledge at Singapore Management University 2011
• Subjects: Commercial Law
• Online Access: https://ink.library.smu.edu.sg/sol_research/1062; https://ink.library.smu.edu.sg/context/sol_research/article/3014/viewcontent/the_party_scope_of_exclusive_jurisdiction_withlink.pdf
• Institution: Singapore Management University

Coherency in international litigation and upholding exclusive jurisdiction clauses, for the most part, work hand in hand. Courts generally take jurisdiction on very wide and exorbitant grounds. There is therefore the ever-present risk of irreconcilable judgments stemming from multiple courts hearing disputes arising from the same transaction or state of affairs. One way in which such a risk is averted is by giving effect to exclusive jurisdiction clauses where parties have included such clauses into their contracts. Thus, when faced with an action brought in breach of an exclusive jurisdiction clause in favour of another forum, the starting position is that the court will stay its proceedings unless the plaintiff is able to show “strong cause” or “strong reasons” why he should be allowed to breach his promise to sue exclusively in another forum. Another means by which the courts strive to uphold exclusive jurisdiction clauses is by taking a liberal construction of them.