What happens when lawsuits arise from international agreements? That's when private international law can play a role. The issue here is the interpretation of foreign laws and jurisprudence. Where and under which legal regime will a dispute between a company in Quebec and one in New York be resolved?
Contracts often plan for legal debates by including a clause in this regard. Christopher Richter, associate at Woods LLP, states, "For example, negotiators often plan for a suit to be heard in New York or Toronto, under U.S. or Canadian law, in the event of a dispute. Including this clause eliminates the problem of jurisdiction right from the start. Nevertheless, problems can arise from badly drafted clauses."
Mr. Richter emphasizes that as a general rule, fewer cases are being brought before the courts, but those that are tend to be increasingly complex. "The same holds true for international cases, which are now quite common due to the large number of international commercial relations."
With the greater complexity and ubiquity of international litigation, and the size of the international transactions sector, private international law is experiencing relatively stable development. The intellectual property aspect, which mainly involves ensuring copyright and patent protection for new technologies and biotechnology, also comes into play.