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CHOOSING JURISDICTION AND APPLICABLE LAW IN DISTRIBUTION CONTRACTS:
STRATEGIES AND RECENT TRENDS
LITIGATING IN CRITICAL COUNTRIES:中国 (CHINA),
РОССИЯ (RUSSIA), INDIA
Paul Jones, Toronto (China)Vladimir Lobastov, St. Petersburg (Russia)
Avninder Singh, New Delhi (India)
IDI Annual MeetingJune 14, 2013 München, Deutschland
1111
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Introduction• The People’s Republic of China (“PRC”) and the
Russian Federation are civil law jurisdictions
• Both are modeled on Germany
• India is a common law jurisdiction modeled on English law
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Introduction – PRC Courtroom
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Introduction – Russian Courtroom
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Introduction - India
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Going to Court around the World
Enforcement of Contracts –
• World Bank – www.doingbusiness.org/EconomyRankings
• Based on procedures, time and cost
• Germany - 5th
• United States – 6th
• France – 8th
• Hong Kong – 10th
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Going to Court around the World
Enforcement of Contracts –
• World Bank – www.doingbusiness.org/EconomyRankings
• Based on procedures, time and cost
• Russian Federation – 11th
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Going to Court around the World
Enforcement of Contracts –
• World Bank – www.doingbusiness.org/EconomyRankings
• Based on procedures, time and cost
• Russian Federation – 11th
• Australia – 15th
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Going to Court around the World
Enforcement of Contracts –
• World Bank – www.doingbusiness.org/EconomyRankings
• Based on procedures, time and cost
• Russian Federation – 11th
• Australia– 15th
• People’s Republic of China– 19th
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Going to Court around the World
Enforcement of Contracts –
• World Bank – www.doingbusiness.org/EconomyRankings
• Based on procedures, time and cost
• Russian Federation – 11th
• Australia– 15th
• People’s Republic of China– 19th
• Canada – 62nd
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Going to Court around the WorldEnforcement of Contracts –
• World Bank – www.doingbusiness.org/EconomyRankings
• Based on procedures, time and cost
• Russian Federation – 11th
• Australia– 15th
• People’s Republic of China– 19th
• Canada – 62nd
• Brasil – 116th
• India - 184th 11
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FACT SITUATION – Sloppy Sally• Sloppy Sally Inc. based in New York
• entered into a franchise agreements and a area development agreements in the PRC, Russia and India
• no disclosure document was given 12
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FACT SITUATION – Sloppy Sally• Franchisees signed U.S. standard form of
franchise agreement
• defaulted
• not following standards regarding cleanliness,
• using an unauthorized trademark in the system,
• not submitting reports and
• not paying royalties
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FACT SITUATION – Sloppy Sally
• governing law is that of New York State
Disputes, except those involving intellectual property, shall be resolved by arbitration in New York City
• Intellectual property disputes shall be resolved by the exclusive jurisdiction of the courts of the Southern District of New York.
• The franchisor retains the option of using the local courts for all disputes.
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FACT SITUATION – Sloppy SallyInhouse counsel:
• How best to terminate the franchisees?
• arbitration in New York tales about 3 months to a year; costs about $50,000 to $100,000 USD
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QUESTIONS – Sloppy Sally
1. How long would it generally take to obtain an initial court decision in your jurisdiction? What would it cost?
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QUESTIONS – Sloppy Sally
2. How long would it generally take to obtain court recognition for an arbitral award in your jurisdictions? What would it cost?
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QUESTIONS – Sloppy Sally
3. What evidence would be required with respect to the claim about each of the issues and what formalities would be required:
• The cleanliness issue and the local standards defense?
• The use of the unauthorized trademark?
• The failure to file reports?
• The failure to pay?18
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QUESTIONS – Sloppy Sally
4. Would a court in your country accept jurisdiction if Sloppy Sally exercised its option to use the local court?
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QUESTIONS – Sloppy Sally
5. Would there be enforcement of any interim measures with respect to the trademark issue, or any other issues, in arbitration or in court?
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CHOOSING JURISDICTION AND APPLICABLE LAW IN DISTRIBUTION CONTRACTS:
STRATEGIES AND RECENT TRENDS
LITIGATING IN CRITICAL COUNTRIES:中国 (CHINA),
РОССИЯ (RUSSIA), INDIA
Paul Jones, Toronto (China)Vladimir Lobastov, St. Petersburg (Russia)
Avninder Singh, New Delhi (India)
IDI Annual MeetingJune 14, 2013 München, Deutschland
21212121