Rome II Regulation

The Rome II Regulation creates a common regime of conflict of law rules for tort, unjust enrichment, negotiorum gestio and culpa in contrahendo for (most of) the member states of the EU.

This book provides an article-by-article commentary which explains the underlying concepts and suggests solutions for problems that have arisen or may arise in the application of the regulation.

The book is the first volume of the new s.elp series of Pocket Commentaries on European regulations and international conventions in the area of conflict of laws. The series is meant to provide a first reference to the legal texts covered.

This book
- introduces the basic concepts of the Rome II Regulation
- offers immediate insight into the problems arising in the application of the regulation
- provides a coherent article-by-article commentary
- assists in updating your knowledge with ease

1;Preface;8 2;Table of Content;10 3;Books Cited inAbbreviated Form;12 4;Journals Cited inAbbreviated Form;16 5;THE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE EUROPEAN UNION;20 6;Introduction;43 6.1;I. Part of an Integrated System;43 6.2;II. Genesis;44 7; Chapter I Scope;47 7.1;Article 1 Scope;47 7.1.1;A. General Outline;49 7.1.2;B. Requirements for Application: Art. 1(1);50 7.1.2.1;I. Civil and Commercial Matters;50 7.1.2.2;II. Non-contractual Obligations;55 7.1.2.2.1;1. General Definition;55 7.1.2.2.2;2. Concurrent Liability;56 7.1.2.2.3;3. Culpa in Contrahendo;56 7.1.2.2.4;4. Questions of Agency: Falsus Procurator and Apparent Authority;57 7.1.2.2.5;5. Property Law, or Rei Vindicatio;58 7.1.2.2.6;6. Actio Pauliana;60 7.1.2.2.7;7. Collective Claims, or Suits Brought by Consumer Protection Associations;61 7.1.2.2.8;8. Prize Notifications;62 7.1.2.2.9;9. Restitution as a Consequence of a Void Contract;62 7.1.2.3;III. Situations Involving a Conflict of Laws;63 7.1.3;C. Specified Exclusions: Art. 1(2);63 7.1.3.1;I. Family Relationships: Art. 1(2)(a);63 7.1.3.2;II. Matrimonial Property Regimes, Wills, Succession: Art. 1(2)(b);65 7.1.3.3;III. Negotiable Financial Instruments: Art. 1(2)(c);66 7.1.3.4;IV. Company Law: Art. 1(2)(d);67 7.1.3.5;V. Trusts: Art. 1(2)(e);69 7.1.3.6;VI. Nuclear Damage: Art. 1(2)(f);71 7.1.3.7;VII. Privacy and Rights Relating to Personality: Art. 1(2)(g);72 7.1.4;D. Evidence and Procedure: Art. 1(3);75 7.1.4.1;I. Distinction between Procedural and Substantive Matters;75 7.1.4.2;II. Application of Foreign Law;76 7.1.5;E. Exclusion of Denmark: Art. 1(4);77 7.2;Article 2 Non-contractual obligations;78 7.2.1;A. Overview;78 7.2.2;B. Material Scope: Future Obligations and Declaratory Actions;79 7.2.3;C. Definitions;80 7.2.3.1;I. Art. 2(1): Damage Refers to Any Consequence;80 7.2.3.2;II. Art. 2(3): Damage and Event Giving Rise to Damage Include Damages and Events That Are Likely to Occur;81 7.3;Article 3 Universal application;81 8;Chapter II Torts/Delict
s;83 8.1;Article 4 General Rule;83 8.1.1;A. Scope and Structure;84 8.1.1.1;I. Torts/Delicts;84 8.1.1.1.1;1. General Definition;84 8.1.1.1.2;2. Distruction between Torst and Unjust Enrichment;85 8.1.1.1.3;3. Distruction between Tort Property Law;86 8.1.1.1.4;4. Concurrent Liability;86 8.1.1.2;II. Structure of the Rules on Torts/Delicts;86 8.1.1.3;III. Structure of Chapter II;87 8.1.1.4;IV. Structure of Art. 4;88 8.1.2;B. Art. 4&klammspace;(1): General Rule: Lex Loci Damni89 8.1.2.1;I. General;89 8.1.2.2;II. Direct and Consequential Damage;91 8.1.2.2.1;1. General;91 8.1.2.2.2;2. Personal Injury and Damage to Property;92 8.1.2.2.3;3. Purely Economic Loss;95 8.1.2.3;III. Damage in Different Countries;107 8.1.2.4;IV. A Nonexistent or Indeterminable Lex Loci Damni;110 8.1.3;C. Art. 4(2): Common Habitual Residence Lex Domicilii Communis;111 8.1.3.1;I. General;111 8.1.3.2;II. Prerequisites;112 8.1.3.2.1;1. . . . The Parties Both . . .;112 8.1.3.2.2;2. . . . Have Their Habitual Residence . . .;115 8.1.3.2.3;3. . . . In the Same Country . . .;116 8.1.3.2.4;4. . . . At the Time the Damage Occurs . . .;118 8.1.4;D. Art. 4(3): Escape Clause/Manifestly Closer Connection;118 8.1.4.1;I. General;118 8.1.4.2;II. Preexisting Relationship;120 8.1.4.2.1;1. General;120 8.1.4.2.2;2. Contractual Relationship;121 8.1.4.2.3;3. Non-Contractual Legal Relationship;122 8.1.4.2.4;4. Factual Relationship;123 8.1.5;E. Particular Cases;123 8.1.5.1;I. Traffic Accidents;123 8.1.5.2;II. Internet Torts;124 8.1.5.3;III. Collision of Ships or Airplanes;125 8.1.5.4;IV. Torts/Delicts onboard a Ship or Airplane;126 8.1.5.5;V. Damage to Res in Transitu;127 8.1.5.6;VI. Damage to Third Parties;129 8.1.5.7;VII. Collective Claims, or Suits Brought by Consumer Protection Associations;131 8.2;Article 5 Product liability;132 8.2.1;A. Overview;133 8.2.1.1;I. Legislative History;133 8.2.1.2;II. Structure;135 8.2.1.3;III. Relationship with the 1973 Hague Convention;137 8.2.2;B. Scope;140 8.2.2.1;I. Material Scope;140 8
.2.2.1.1;1. Non-Contractual Liability for Damage Caused by a Defective Product;140 8.2.2.1.2;2. Relationship with Other Provisions of the Regulation;142 8.2.2.1.3;3. Relationship with the E-Commerce Directive;143 8.2.2.2;II. Personal Scope;145 8.2.2.3;III. Territorial Scope;146 8.2.3;C. Determination of the Applicable Law;146 8.2.3.1;I. Ladder of Connections;146 8.2.3.1.1;1. Choice of Law;146 8.2.3.1.2;2. Common Habitual Residence;146 8.2.3.1.3;3. The Cascade of Art. 5(1)1 lit. a to c;146 8.2.3.1.4;4. Foreseeability Defence;156 8.2.3.1.5;5. Escape Clause;158 8.2.4;D. Burden of Proof;159 8.2.5;E. Jurisdiction Issues;159 8.3;Article 6 Unfair competition and acts restricting free competition;161 8.3.1;A. Overview;163 8.3.2;B. Unfair Competition;164 8.3.2.1;I. Structure and Relationship between Art. 6(1) and 6&klammspace;(2);1648.3.2.2;II. Scope166 8.3.2.2.1;1. Material Scope;166 8.3.2.2.2;2. Personal Scope;182 8.3.2.2.3;3. Territorial Scope;183 8.3.2.3;III. Determination of the Applicable Law;183 8.3.2.3.1;1. Market-Related Acts;183 8.3.2.3.2;2. Competitor-Related Acts;192 8.3.2.3.3;3. Multi-State Acts;193 8.3.3;C. Acts Restricting Free Competition;196 8.3.3.1;I. Legislative History and Background;196 8.3.3.2;II. Scope;198 8.3.3.2.1;1. Material Scope;198 8.3.3.2.2;2. Personal Scope;202 8.3.3.2.3;3. Territorial Scope;203 8.3.3.3;III. Structure;204 8.3.3.4;IV. Operation;205 8.3.3.4.1;1. Follow-On Actions;205 8.3.3.4.2;2. Stand-Alone Actions;206 8.3.3.5;V. Determination of the Applicable Law;207 8.3.3.5.1;1. General Rule;207 8.3.3.5.2;2. Multi-State and Multi-Party Constellations;214 8.4;Article 7 Environmental damage;221 8.4.1;A. Introduction;221 8.4.2;B. Justification of the Principle of Ubiquity and the Victims Option to Choose the Law of the Place of Conduct;223 8.4.2.1;I. Basic Rule;223 8.4.2.2;II. Criticism;224 8.4.2.3;III. Principle of Prevention;226 8.4.3;C. Content of the Provision;227 8.4.3.1;I. Civil and Commercial Matters;227 8.4.3.2;II. Environmental Damage e
t al.;230 8.4.3.3;III. Reference to the General Rule in Art. 4(1);233 8.4.3.4;IV. The Victims Right to Choose the Law of the Place of Conduct;234 8.4.3.5;V. Scope of the Applicable Law;235 8.4.4;D. Rules of Safety and Conduct (Art. 17);236 8.4.5;E. Excluded from the Scope: Nuclear Damage;239 8.4.6;F. Other Instruments;242 8.4.6.1;I. Directive 2004/35/EC;242 8.4.6.2;II. International Conventions;243 8.5;Article 8 Infringement of Intellectual Property Rights;245 8.5.1;A. Overview;246 8.5.1.1;I. Legislative History and Background;246 8.5.1.2;II. Structure;247 8.5.2;B. Scope of the Conflict Rule;250 8.5.2.1;I. Material Scope;250 8.5.2.1.1;1. Intellectual Property Rights;250 8.5.2.1.2;2. Relevant Act;253 8.5.2.1.3;3. Comprehensive Coverage;253 8.5.2.1.4;4. Relationship with Other Conflict Rules of the Regulation;254 8.5.2.1.5;5. Relationship with Conflict Rules in Other EU Regulations;254 8.5.2.1.6;6. Relationship with EU Primary Law;256 8.5.2.1.7;7. Relationship with International Conventions;256 8.5.2.2;II. Personal Scope;257 8.5.2.3;III. Territorial Scope;257 8.5.3;C. Determination of the Applicable Law;257 8.5.3.1;I. Operation and Interplay with Unitary Community Instruments;257 8.5.3.2;II. Different Connecting Factors;260 8.5.3.2.1;1. The General (External) Conflict Rule (Art. 8(1));260 8.5.3.2.2;2. The Special (Internal) Conflict Rule (Art. 8(2));264 8.5.3.2.3;3. Escape Clause and Choice of Law;267 8.5.3.3;III. Scope of the Applicable Law;270 8.5.3.3.1;1. General Considerations;270 8.5.3.3.2;2. Unlawful and Lawful Acts;275 8.5.3.3.3;3. Contractual versus Non-Contractual Obligations;276 8.5.4;D. Jurisdiction Issues;277 8.6;Article 9 Industrial action;278 8.6.1;A. Introductory Issues;279 8.6.1.1;I. Legislative History;279 8.6.1.2;II. Background;280 8.6.1.2.1;III. Policy Issues;282 8.6.1.3;IV. Structure;284 8.6.2;B. Scope of the Conflict Rule;285 8.6.2.1;I. Material Scope;285 8.6.2.1.1;1. The Concept of Industrial Action;285 8.6.2.1.2;2. Limitation to Tort/Delict;288
8.6.2.1.3;3. Non-Contractual vs. Contractual Obligations;288 8.6.2.2;II. Personal Scope;289 8.6.2.2.1;1. Person Claimed to be Liable;289 8.6.2.2.2;2. Person Sustaining Damage;290 8.6.2.3;III. Territorial Scope;292 8.6.3;C. Determination of the Applicable Law;293 8.6.3.1;I. Choice of Law;293 8.6.3.2;II. Common Habitual Residence;293 8.6.3.3;III. Country Where the Action Is to Be, or Has Been, Taken;295 8.6.3.4;IV. Multi-State Scenarios;296 8.6.3.5;V. Scope of the Applicable Law;297 8.6.3.5.1;1. Liability and Legality;297 8.6.3.5.2;2. Damages Claims and Injunctive Relief;298 8.6.3.5.3;3. Causal Link between Industrial Action and Damage;300 8.6.3.5.4;4. Mandatory Rules and Public Policy;301 8.6.4;D. Jurisdiction Issues;301 9;Chapter III Unjust Enrichment, Negotiorum Gestio and Culpa in Contrahendo;305 9.1;Article 10 Unjust Enrichment;305 9.1.1;A. Scope;306 9.1.1.1;I. The Term Unjust Enrichment;306 9.1.1.1.1;1. General;306 9.1.1.1.2;2. Distinction between Unjust Enrichment and Tort;307 9.1.1.1.3;3. Distinction Between Unjust Enrichment and Negotiorum Gestio;309 9.1.1.1.4;4. Distinction between Unjust Enrichment and Contractual Obligations;309 9.1.1.1.5;5. Distinction between Unjust Enrichment and Property Law;310 9.1.1.2;II. Excluded Matters;311 9.1.2;B. Rule;311 9.1.2.1;I. Structure of Art. 10;311 9.1.2.2;II. Accessory Connection to an Existing Relationship (Subsection 1);312 9.1.2.3;III. Lex Domicilii Communis (Subsection 2);314 9.1.2.4;IV. Place of enrichment (Subsection 3);315 9.1.2.5;V. Escape Clause (Subsection 4);318 9.1.2.6;VI. Three-Party-Relationship;318 9.2;Article 11 Negotiorum gestio;319 9.2.1;A. Scope;320 9.2.1.1;I. The Term Negotiorum Gestio;320 9.2.1.1.1;1. General;320 9.2.1.1.2;2. Distinction between Negotiorum Gestio and Contractual Obligations;322 9.2.1.1.3;3. Distinction between Negotiorum Gestio, Unjust Enrichment and Tort;322 9.2.1.2;II. Excluded Matters;323 9.2.2;B. Rule;324 9.2.2.1;I. Structure of Art. 11;324 9.2.2.2;II. Accessory Connection to a
n Existing Relationship (Subsection 1);324 9.2.2.3;III. Lex Domicilii Communis (Subsection 2);327 9.2.2.4;IV. Lex Loci Gestionis (Subsection 3);328 9.2.2.5;V. Escape Clause (Subsection 4);329 9.3;Article 12 Culpa in contrahendo;330 9.3.1;A. Scope;331 9.3.1.1;I. The Term Culpa in Contrahendo;331 9.3.1.1.1;1. General;331 9.3.1.1.2;2. Distinction between Culpa in Contrahendo and Tort;332 9.3.1.1.3;3. Distinction between Culpa in Contrahendo and Contractual Obligations;333 9.3.1.1.4;4. Claims against Third Parties;334 9.3.1.1.5;5. Concurrent Liability;337 9.3.1.2;II. Excluded Matters;337 9.3.2;B. Rule;338 9.3.2.1;I. Structure of Art. 12;338 9.3.2.2;II. Accessory Connection to the Law Which Governs the Contract (Subsection 1);338 9.3.2.3;III. Art. 4 Cascade (Subsection 2);340 9.3.2.3.1;1. Scope of Application;340 9.3.2.3.2;2. Cascade System;341 9.4;Article 13 Applicability of Article 8;342 10;Chapter IV Freedom of choice;343 10.1;Article 14 Freedom of choice;343 10.1.1;A. General;344 10.1.1.1;I. Scope of Application;344 10.1.1.2;II. Differentiation between Consumer Contracts and Commercial Contracts;346 10.1.1.3;III. Selectable Law;348 10.1.1.4;IV. Partial Choice of Law (dépeçage);348 10.1.2;B. Prerequisites;349 10.1.2.1;I. Common Prerequisites for Both Types, Art. 14(1)(2);349 10.1.2.1.1;1. Consensus;349 10.1.2.1.2;2. Formation and Validity;351 10.1.2.1.3;3. Formal Requirements;352 10.1.2.1.4;4. Alteration;353 10.1.2.2;II. Additional Prerequisites for an Anterior Choice of Law, Art. 14(1)(b);353 10.1.2.2.1;1. . . . Before the Event Giving Rise to the Damage;353 10.1.2.2.2;2. . . . Pursuing a Commercial Activity . . .;353 10.1.2.2.3;3. . . . All Parties . . .;354 10.1.2.2.4;4. . . . an Agreement Freely Negotiated . . .;355 10.1.2.2.5;5. Choice of Law in Favour of the Weaker Party;356 10.1.3;C. Restrictions;357 10.1.3.1;I. Rights of Third Parties;357 10.1.3.2;II. National Mandatory Provisions, Art. 14(2);358 10.1.3.3;III. European Mandatory Provisions, Art. 14(3);359 10.1
.4;D. Consequences of an Invalid Choice of Law Agreement;361 11;Chapter V Common rules;361 11.1;Article 15 Scope of the law applicable;361 11.1.1;A. General/Overview/System;362 11.1.2;B. Particular Governed Aspects;363 11.1.2.1;I. Basis and Extent of Liability, Lit. (a);363 11.1.2.2;II. Exemption, Limitation, and Division of Liability, Lit. (b);365 11.1.2.3;III. Existence, Nature, and Assessment of the Remedy Claimed, Lit. (c);366 11.1.2.4;IV. Prevention of Injury, lit. (d);367 11.1.2.5;V. Transfer of Remedies, Lit. (e);368 11.1.2.6;VI. Persons Entitled to Compensation for Damage Sustained Personally, Lit. (f);368 11.1.2.7;VII. Liability for the Acts of another Person, Lit. (g);369 11.1.2.8;VIII. Defences, Lit. (h);370 11.2;Article 16 Overriding mandatory provisions;371 11.2.1;A. Introduction;371 11.2.2;B. Overriding Mandatory Provisions;373 11.2.3;C. Scope of Application;375 11.2.3.1;I. Choice of Law;376 11.2.3.2;II. Compensation for Victims of Traffic Accidents;377 11.2.3.3;III. Rules of Safety and Conduct;378 11.2.3.4;IV. Exchange Control;379 11.2.3.5;V. Miscellaneous;380 11.2.4;D. Third Countrys Internationally Mandatory Provisions;381 11.3;Article 17 Rules of safety and conduct;384 11.3.1;A. General/Overview/System;385 11.3.2;B. Prerequisites;387 11.3.2.1;I. In Assessing the Conduct of the Person Claimed to be Liable . . .;387 11.3.2.2;II. . . . Account Shall be Taken as a Matter of Fact . . .;387 11.3.2.3;III. . . . Account Shall be Taken in so far as Is Appropriate . . .;388 11.3.2.4;V. . . . To the Rules of Safety and Conduct . . .;390 11.3.2.5;VI. . . . Which were in Force at the Place and Time of the Event Giving Rise to the Liability;392 11.4;Article 18 Direct Action against the insurer of the person liable;393 11.4.1;A. Overview;393 11.4.2;B. Detailed Commentary;395 11.4.2.1;I. Who can Claim Direct Compensation against the Insurer?;395 11.4.2.2;II. Does the Victim have to Opt for the Law Governing the Insurance Contract?;396 11.4.2.3;III. What is the Law
Applicable to the Non-Contractual Obligation in the Sense of Art. 18 Rome II?;397 11.4.2.4;IV. Which Questions are Governed by Art. 18 Rome II?;399 11.4.2.5;V. Traffic Accidents;402 11.5;Article 19 Subrogation;403 11.5.1;A. Overview;403 11.5.2;B. Detailed Commentary;405 11.5.2.1;I. A Duty to Satisfy the Creditor;405 11.5.2.2;II. The Scope of the Law of the Subrogation;405 11.5.2.3;III. The Scope of the Law of the Non-Contractual Obligation;406 11.5.2.4;IV. Other Claims than Subrogation Claims?;407 11.5.2.5;V. Council Regulation (EEC) No. 1408/71;407 11.6;Article 20 Multiple liability;408 11.6.1;A. General/System/Overview;408 11.6.1.1;I. Relationship to Art. 15(a);408 11.6.1.2;II. Relationship to Art. 19;409 11.6.1.3;III. Relationship to Art. 16 Rome I;411 11.6.1.4;IV. Relationship to Arts. 10 and 11;411 11.6.2;B. Detailed Commentary;412 11.6.2.1;I. Prerequisites;412 11.6.2.1.1;1. . . . Several Debtors that Are Liable for the Same Claim . . . ;412 11.6.2.1.2;2. . . . One of the Debtors Has Already Satisfied the Claim in Whole or in Part . . . ;413 11.6.2.2;II. Legal Consequences;414 11.6.2.2.1;1. General Outline;414 11.6.2.2.2;2. Scope of the Law Applicable;415 11.6.2.2.3;2.1. Exclusion of Liability of the Second Debtor;415 11.6.2.2.4;2.2. Different Measurement of Damages;418 11.6.2.2.5;3. Recourse and Choice of Law;419 11.7;Article 21 Formal validity;420 11.7.1;A. Overview;420 11.7.2;B. Unilateral Acts;420 11.7.3;C. Formal Validity;421 11.8;Article 22 Burden of proof;421 11.8.1;A. Overview;422 11.8.2;B. Detailed Commentary;423 11.8.2.1;I. Rules which Raise Presumptions of Law or Determine the Burden of Proof (Art. 22(1) Rome II);423 11.8.2.2;1. General;423 11.8.2.3;2. Procedural Presumtions Are not Covered by Art. 22(1) Rome II;424 11.8.2.4;3. Presumtions of Fact Are not Covered by Art. 22(1) Rome II;425 11.8.2.5;II. Available Modes of Proof (Art. 22(2) Rome II);427 11.8.2.5.1;1. Applicable Laws;427 11.8.2.5.2;2. Administrable by the Forum;428 12;Chapter VI Other P
rovisions;429 12.1;Article 23 Habitual Residence;429 12.1.1;A. Overview;430 12.1.2;B. Detailed Commentary;430 12.1.2.1;I. Habitual Residence of Companies and Other Bodies;430 12.1.2.1.1;1. Place of Central Administration (Art. 23(1)1 Rome II);430 12.1.2.1.2;2. Location of a Branch, Agency or Other Establishment (Art. 23(1)2 Rome II);432 12.1.2.2;II. Habitual Residence of Natural Persons;434 12.1.2.2.1;1. Principal Place of Business, if the Person is Acting in the Course of His or Her Business Activity (Art. 23(2) Rome II);434 12.1.2.2.2;2. Habitual Residence of Natural Persons Who Are not Acting in the Course of Their Business Activities;435 12.2;Article 24 Exclusion of renvoi;436 12.3;Article 25 States with more than one legal system;439 12.3.1;A. Overview;439 12.3.2;B. Detailed Commentary;440 12.3.2.1;I. Art. 25(1) Rome II;440 12.3.2.2;II. Art. 25(2) Rome II;442 12.4;Article 26 Public policy of the forum;442 12.4.1;A. Background;443 12.4.2;B. Scope of Application;445 12.4.2.1;I. Non-Contractual Obligation;446 12.4.2.2;II. Exceptional Case;447 12.4.2.3;III. Application of the Foreign Law;447 12.4.2.4;IV. Connection to the Forum;448 12.4.2.5;V. Ordre public international;448 12.4.3;C. Consequences;449 12.4.4;D. Punitive Damages;449 12.5;Article 27 Relationship with other provisions of Community law;453 12.5.1;A. General;454 12.5.1.1;I. Background;454 12.5.1.2;II. Fragmentation;455 12.5.2;B. The Operation of the Rule;455 12.5.2.1;I. Operation in General;455 12.5.2.2;II. The Effect of the Country of Origin-Principle in Other Provisions of Community Law;456 12.5.2.3;III. Scope and Preconditions;458 12.6;Article 28 Relationship with existing international conventions;459 12.6.1;A. Structure, Purpose and Background;460 12.6.2;B. Operation and Prerequisites of the Rule;464 12.6.2.1;I. Conventions between Member States and Third Countries;464 12.6.2.1.1;1. Existing Conventions - Art. 28(1);464 12.6.2.1.2;2. Future Conventions;466 12.6.2.2;II. Conventions Exclusively betwee
n Member States - Art. 28(2);468 13;Chapter VII Final Provisions;469 13.1;Article 29 List of conventions;469 13.2;Article 30 Review clause;470 13.2.1;A. Background;472 13.2.2;B. Specific Issues;472 13.2.2.1;1. Treatment of Foreign Law;472 13.2.2.2;2. Cross-Border Traffic Accidents;473 13.2.2.2.1;3. Violation of Privacy and Rights Relating to Personality;475 13.3;Article 31 Application in time;476 13.4;Article 32 Date of application;476 13.4.1;A. The Rule;477 13.4.1.1;I. Literal Interpretation;477 13.4.1.2;II. The Majority View to the Contrary;479 13.4.1.3;III. Case Law;482 13.4.2;B. Application of the Rule;483 14;Index;486