Foreign exclusive jurisdiction clauses and adjudication enforcement

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Legal and contractual solutions · Adjudication

Does a foreign exclusive jurisdiction and governing-law clause prevent enforcement of an adjudicator's decision in the United Kingdom?

Mandatory adjudication, interim compliance and the agreed forum for final determination

A foreign governing-law or exclusive-jurisdiction clause does not automatically disapply statutory adjudication or prevent enforcement. The court must examine the territorial reach of the legislation, the contract wording and its own jurisdiction in the particular proceedings.

Quick answer

A foreign forum clause does not by itself defeat an adjudication decision that the statutory regime requires the parties to obey

Where the statutory adjudication regime applies, the parties cannot necessarily avoid its interim effect by selecting foreign law or a foreign court for final disputes. The court held that such a clause did not prevent an English court enforcing the temporary decision of an adjudicator properly made under a contract within the statutory regime, while the parties' right to take the underlying dispute to the Austrian court for final determination was preserved. Do not treat that result as a universal jurisdiction rule. Confirm that the contract falls within the territorial and subject-matter scope of the legislation, that the adjudicator had jurisdiction, and that the enforcing court may hear the proceedings and serve the defendant.

IssuePosition
Statutory adjudication appliesForeign clause may not defeat interim compliance
Final merits disputeMay remain for the chosen foreign court
Territorial scope disputedResolve before referral
Court jurisdiction disputedAddress forum and service separately
Adjudicator exceeded jurisdictionOrdinary enforcement defence remains

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