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From 1 January 2025 the Hague Convention on Choice of Court Agreements of 30 June 2005 (the Hague Choice of Court Convention) will bind Switzerland. Switzerland’s accession will increase certainty and effectiveness of jurisdiction clauses and facilitate recognition and enforcement of judgments given by Contracting States’ courts in international civil or commercial matters. Post BREXIT, Switzerland’s accession ensures the enforcement and recognition of English court’s judgments in Switzerland and vice versa. Given the importance of English courts’ jurisdiction (particularly but not only in international finance transactions) and the trade volumes between Switzerland and the UK, many businesses will benefit.
Subject to certain exclusions (antitrust, employment, family law, insolvency matters etc.), Contracting States to the Hague Choice of Court Convention must ensure that (1) the court chosen by the parties to an international transaction hears the dispute (predictability of the forum), (2) any non-chosen court seized by a party suspends or dismisses proceedings initiated before it (prevention of parallel proceedings), and (3) judgments rendered by the chosen court are generally recognized and enforced in other Contracting States’ territories with only limited grounds for refusal (global circulation of judgements). Notably, interim measures of protection are, however, out of scope.
As the first Contracting State, Switzerland declared that it will also recognize non-exclusive jurisdiction clauses in accordance with the Hague Choice of Court Convention. However, because no other Contracting State has made a corresponding reciprocal declaration yet, this progressive Swiss stand has limited implications for now.
In general, Switzerland’s accession to the Hague Choice of Court Convention may not to be considered as a major turning-point for Swiss recognition and enforcement proceedings since (1) the Lugano Convention on jurisdiction and the recognition and enforcement of judgements in civil and commercial matters of 30 October 2007 (the Lugano Convention) that already applies between Switzerland and EU/EFTA countries will take precedence over the Hague Choice of Court Convention when applicable and (2) the Swiss Private International Law Act (the Swiss PILA) materially provides for similar requirements for the recognition and enforceability of foreign judgments in Switzerland.
It is nevertheless a welcome step in relation to the UK. Having participated in the Hague Choice of Court Convention by virtue of its EU membership, the UK acceded independently in 2020. So as between the UK and Switzerland, the Hague Choice of Court Convention will now govern the recognition of jurisdiction clauses and the recognition and enforcement in Switzerland of English courts’ judgments in particular, which have been subject to the Swiss PILA rules since the Lugano Convention ceased to bind the UK as of 1 January 2021. The application of the Hague Choice of Court Convention to English courts’ judgment will also ease current applicable formal requirements as documents delivered under the Hague Choice of Court Convention shall be exempt from legalization or analogous formality, including an Apostille.
The Hague Choice of Court Convention will apply to Switzerland starting 1 January 2025, i.e., to Swiss jurisdiction clauses entered after 1 January 2025 and to recognition and enforcement proceedings initiated in Switzerland after 1 January 2025.
