The Lugano Convention clarifies which national courts have jurisdiction in cross-border civil and commercial disputes and ensures judgements are enforceable across borders. The UK has applied to accede to the convention as an independent member. However, all signatories would have to agree.
Should the UK’s readmission be blocked, individuals and small businesses are likely to be among the worst casualties if readmission is blocked, the letter said.
The letter, to Charles Michel, the president of the European Council, and others in Brussels, was sent this week by the Law Societies of England & Wales, of Scotland and of Northern Ireland, the City of London Corporation, British Retail Consortium, British Chamber of Commerce EU & Belgium, Which? and Chambers of Ireland.
David Greene, Law Society president, said: ‘Lugano means that a consumer in Germany who is let down by goods sent from the UK (and vice versa) will be able to seek redress in their local court rather than having to raise multiple legal cases in different jurisdictions―a move out of the reach of all but deepest pockets.
‘But it is much more than that: Lugano also provides protection where one of the parties is deemed to be in a weaker position than the other: there are special regimes for employment, insurance and consumer contracts, and maintenance orders.
‘It therefore makes dispute resolution more accessible whether you are an employee with a grievance, a consumer let down by a goods or service provider, or a parent trying to enforce a maintenance order.’
Lugano already applies between EU and members of the European Free Trade Area (EFTA) states but it is also available for non-EU and non-EFTA countries.
Greene said blocking UK readmission would open ‘the door for people in the UK or EU to try to take advantage of different legal systems to delay justice.
‘Of course, the wealthiest corporations and individuals will still be able to enforce their rights but without Lugano access to justice will be denied to those with smaller budgets.’
