Jurisdiction and Arbitration Clauses in Maritime Transport Documents: A Comparative Analysis

293 Pages·2010·3.49 MB·English

by  Felix Sparka (auth.)

International Max Planck Research School (IMPRS)
for Maritime Affairs
at the University of Hamburg
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Hamburg Studies on Maritime Affairs
Volume 19
Edited by
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Rüdiger Wolfrum
Wilfried Zahel
Felix Sparka
Jurisdiction and
Arbitration Clauses
in Maritime
Transport Documents
A Comparative Analysis
123
Felix Sparka, LL.M. (Miami)
Schopstraße 10
20255 Hamburg
Germany
[email protected]
Dissertation zur Erlangung der Doktorwürde
an der Fakultät für Rechtswissenschaft der Universität Hamburg
Vorgelegt von: Felix Sparka, LL.M. (Miami)
Erstgutachter: Prof. Dr. Dr. h.c. Jürgen Basedow, LL.M. (Harvard)
Zweitgutachter: Prof. Dr. Reinhard Bork
Tag der mündlichen Prüfung: 28. Oktober 2009
ISSN1614-2462 e-ISSN1867-9587
ISBN978-3-642-10221-9 e-ISBN978-3-642-10222-6
DOI 10.1007/978-3-642-10222-6
Springer Heidelberg Dordrecht London New York
LibraryofCongressControlNumber: 2009943735
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Preface
The topic of this study goes back to a discussion with my doctoral advisor Profes-
sor Dr. Dr. h.c. Jürgen Basedow, Director of the Max Planck Institute for Com-
parative and International Private Law in Hamburg. I would like to express my
most sincere appreciation for his crucial comments and ideas as well as for his
constant support, despite the fact that the conclusions reached in this study do not
necessarily reflect his views. I would also like to thank Professor Dr. Reinhard
Bork for his fast second opinion on my dissertation and for being my mentor
throughout my time as a student at the University of Hamburg.
Moreover, I am grateful to those who gave me the opportunity to contemplate
this interesting aspect of the law. The first to be named is the Max Planck
Research School for Maritime Affairs, which provided me with a generous
scholarship over a period of three years and a grant for the publication of this
book. In addition, a Fulbright scholarship enabled me to study two semesters at
the University of Miami and to deepen my understanding of U.S. law. I will
always remember this time as a truly wonderful experience.
The research for this study would not have been possible without the unique
collection of the Max Planck Institute for Comparative and International Private
Law. I am indebted to its staff for all their kind assistance and to Michael
Friedman in particular who proof-read my text.
Last but not least, I would like to thank my family and my friends not only for
their encouragement and support, but also for the occasional distraction.
This study strives to state the law as of 30 June 2009.

Felix Sparka
Hamburg, October 2009
Contents
Abbreviations.....................................................................................................XIII

Chapter 1: Introduction.........................................................................................1
A. Towards a uniform system of choice of forum agreements in
maritime transport documents......................................................................1
I. A note on the subject of this study........................................................1
II. Objective and scope of the project........................................................2
B. Benefits and disadvantages of choice of forum agreements.........................4
I. Benefits for the contracting parties........................................................4
II. Disadvantages generally associated with choice of forum
agreements.............................................................................................6
C. Choice of forum clauses in the context of maritime transport......................9
I. Protectionism and the structure of shipping..........................................9
II. Industry bargaining pattern..................................................................12
III. Ability of the parties to conduct legal proceedings abroad..................13
D. The influence of the lawyers’ own interests...............................................14
E. Summary....................................................................................................17

Chapter 2: The Legal Framework for Choice of Forum Clauses in
Maritime Transport Documents........................................................19
A. The legal framework for jurisdiction clauses in maritime
transport documents...................................................................................19
I. The U.S. framework for jurisdiction clauses.......................................19
1. Relation between federal and state law in maritime
matters...........................................................................................19
2. Essential laws and some questions on their application.................21
II. The European framework for jurisdiction clauses...............................24
1. The Brussels-Lugano regime.........................................................24
2. Scope of the Brussels-Lugano regime...........................................26
III. The English framework for jurisdiction clauses..................................28
IV. The German framework for jurisdiction clauses.................................30
B. The legal framework for arbitration clauses in maritime transport
documents..................................................................................................31
I. The U.S. framework for arbitration clauses.........................................31
II. The English framework for arbitration clauses...................................34
VIII Contents

III. The German framework for arbitration clauses...................................36
C. Summary....................................................................................................37

Chapter 3: Bills of Lading and other Maritime Transport Documents...............39
A. Bills of lading.............................................................................................39
I. A short history of the bill of lading.....................................................39
II. The functions of a bill of lading..........................................................41
1. Receipt for the goods delivered by the shipper to the
carrier.............................................................................................41
2. Evidence of the terms of the contract............................................43
3. Document of title...........................................................................44
III. Bills of lading in the event of charter..................................................47
1. Bills of lading issued by the owner to the charterer.......................48
2. Bills of lading issued by the charterer...........................................48
B. Modern Counterparts of Bills of Lading....................................................49
I. Sea Waybills........................................................................................49
II. Transshipment and multimodal transport documents..........................52
1. Transshipment and multimodal transport documents
generally........................................................................................52
2. CMR consignment notes................................................................54
III. Electronic shipping documents...........................................................56
C. Passenger tickets........................................................................................58
D. Summary....................................................................................................60

Chapter 4: Common Types of Choice of Forum Clauses in Maritime
Transport Documents........................................................................63
A. The use of jurisdiction clauses in maritime transport documents..............63
I. Exclusive and non-exclusive jurisdiction clauses...............................63
II. Interpretation of ambiguous and fragmentary clauses.........................66
1. Clauses which are ambiguous as to being exclusive or
non-exclusive.................................................................................66
2. Clauses which are unclear about the chosen forum.......................68
III. Determination of the scope of jurisdiction clauses..............................69
B. The use of arbitration clauses in maritime transport documents................71
I. Institutional and ad hoc arbitration......................................................72
II. The place of arbitration.......................................................................73
III. Arbitration procedure..........................................................................76
IV. Determination of the scope of arbitration clauses...............................77
C. Summary and commentary........................................................................79

Chapter 5: Classification of Choice of Forum Clauses and their
Separability from the Main Contract.................................................81
A. Classification of jurisdiction clauses and their separability from
the main contract........................................................................................82
Contents IX

I. Classification and separability under U.S. law....................................82
II. Classification and separability under the Brussels-Lugano
regime..................................................................................................84
III. Classification and separability under English law...............................85
IV. Classification and separability under German law..............................86
B. Classification of arbitration clauses and their separability from
the main contract........................................................................................88
I. Classification and separability under U.S. law....................................88
II. Classification and separability under English law...............................90
III. Classification and separability under German law..............................91
C. Comparative review...................................................................................93
D. Legal policy considerations........................................................................94
E. Summary....................................................................................................98

Chapter 6: Formal Requirements and the Incorporation of Choice of
Forum Agreements............................................................................99
A. Formal requirements and the incorporation of jurisdiction
agreements...............................................................................................100
I. Form and incorporation under U.S. law............................................100
II. Form and incorporation under the Brussels-Lugano regime.............101
III. Form and incorporation under English law.......................................104
IV. Form and incorporation under German law.......................................105
B. Formal requirements and the incorporation of arbitration
agreements...............................................................................................107
I. Form and incorporation under U.S. law............................................107
II. Form and incorporation under English law.......................................111
III. Form and incorporation under German law.......................................114
C. Comparative review.................................................................................117
D. Legal policy considerations......................................................................117
E. Summary..................................................................................................123

Chapter 7: Inconvenient and Unfair Choice of Forum Clauses........................125
A. Inconvenient and unfair jurisdiction clauses............................................125
I. Inconvenient and unfair jurisdiction clauses under U.S. law.............125
1. The reasonableness doctrine........................................................125
2. Forum non conveniens and the change of venue section.............128
3. Fairness........................................................................................131
II. Inconvenient and unfair jurisdiction clauses under the
Brussels-Lugano regime....................................................................133
III. Inconvenient and unfair jurisdiction clauses under English
law.....................................................................................................135
IV. Inconvenient and unfair jurisdiction clauses under German
law.....................................................................................................138
X Contents

B. Inconvenient and unfair arbitration clauses.............................................141
I. Inconvenient and unfair arbitration clauses under U.S. law..............141
II. Inconvenient and unfair arbitration clauses under English
law.....................................................................................................143
III. Inconvenient and unfair arbitration clauses under German
law.....................................................................................................144
C. Comparative review.................................................................................146
D. Legal policy considerations......................................................................147
E. Summary..................................................................................................152

Chapter 8: The Effect of Mandatory Liability Rules on the
Enforcement of Choice of Forum Clauses......................................153
A. The effect of mandatory liability rules on the enforcement of
jurisdiction clauses...................................................................................153
I. Mandatory liability and jurisdiction clauses under U.S. law.............153
II. Mandatory liability and jurisdiction clauses under the
Brussels-Lugano regime....................................................................156
III. Mandatory liability and jurisdiction clauses under English
law.....................................................................................................157
IV. Mandatory liability and jurisdiction clauses under German
law.....................................................................................................158
B. The effect of mandatory liability rules on the enforcement of
arbitration clauses....................................................................................161
I. Mandatory liability and arbitration clauses under U.S. law..............161
II. Mandatory liability and arbitration clauses under English
law.....................................................................................................162
III. Mandatory liability and arbitration clauses under German
law.....................................................................................................162
C. Comparative review.................................................................................163
D. Legal policy considerations......................................................................164
E. Summary..................................................................................................168

Chapter 9: The Effect of Choice of Forum Clauses on Third Party
Cargo Receivers..............................................................................169
A. The effect of jurisdiction clauses on third party cargo receivers..............170
I. Position of third party cargo receivers under U.S. law......................170
II. Position of third party cargo receivers under the Brussels-
Lugano regime...................................................................................172
III. Position of third party cargo receivers under English law.................174
IV. Position of third party cargo receivers under German law................176
B. The effect of arbitration clauses on third party cargo receivers...............178
I. Position of third party cargo receivers under U.S. law......................178
II. Position of third party cargo receivers under English law.................180
III. Position of third party cargo receivers under German law................181