Deal liberates EU courts from huge US payouts

Date: 21/06/01

By Peter Chapman

INTERNATIONAL legal bodies, including EU courts, will be able to ignore the huge pay-outs awarded by US juries, officials meeting at a summit in The Hague agreed this week.

US courts often award higher compensation in civil disputes than levels set by other countries. Under the new deal, foreign courts can rely upon their own standards when they enforce US judgements.

Hans van Loon, secretary-general of the 'Hague Conference', said this was a key area of progress in a week of intense discussions on a draft convention designed to update the rules of engagement for international civil and commercial legal disputes.

Despite the breakthrough, no final treaty was approved and van Loon said differences persist over the way international legal disputes are handled. "Jurisdiction is a mat-ter for heavy debate," he said, adding that further discussions would take place next year.

In the talks, EU member states and the European Commission are to share the mandate for negotiations.

European sources said they want to tame US courts which they claim "grab jurisdiction" of cases which should be handled by courts in foreign countries.

International legal bodies, including EU courts, will be able to ignore the huge pay-outs awarded by US juries, officials meeting at a summit in The Hague have agreed.