Cross-border Debt Recovery Blog
by Marco Sposini
Laywer, Milan Bar Association
Worldwide debt recovery news
The Court of Justice on jurisdiction in a claim based on preliminary franchise agreement under Article 7(1) of Regulation (EU) No 1215/2012
14 September 2023
The Court of Justice of the European Union, by judgment ECLI:EU:C:2023:675, dated 14 September 2023, in Case C-393/22 – in proceedings between EXTÉRIA s.r.o., established in Ostrava (Czech Republic), and Spravime s.r.o., established in Ivanovice (Slovak Republic), concerning a claim for payment of a contractual penalty based on the non-execution of a contract to enter into a future contract relating to the future conclusion of a franchise agreement – ruled that Article 7(1)(b) of Regulation (EU) No 1215/2012 on jurisdiction and the recognition and enforcement of judgments in civil and commercial matters must be interpreted as meaning that a contract to enter into a future contract relating to the future conclusion of a franchise agreement which provides for an obligation to pay a contractual penalty based on non-performance of that contract to enter into a future contract, the breach of which serves as a basis for a claim, does not fall within the concept of a contract for the ‘provision of services’ within the meaning of that provision. In such a case, jurisdiction over a claim on which that obligation serves as a basis is determined, in accordance with Article 7(1)(a) of that regulation, by reference to the place of performance of that obligation.
The text is available here