Enforcement—EU law

The contract between the English claimant and the Canadian defendant contained a Canadian governing law clause and provided for arbitration in Toronto. Disputes arose and an arbitral tribunal appointed pursuant to the clause held that the Commercial Agents (Council Directive) Regulations 19932 (which were introduced into English law to give effect to mandatory provisions of EU law3) did not apply when determining the parties’ rights and liabilities. The claimant commenced proceedings in the English court claiming compensation under the Regulations. The defendant obtained an order setting aside permission to serve the proceedings out of the jurisdiction, and a stay of proceedings pursuant to the Arbitration Act 1996, s 9. The claimant appealed, arguing that the choice of law and arbitration provisions amounted to an evasion of EU law and, as such, were unenforceable.