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The impact of legal nexus points on forum choices for maritime conflicts

By Diego Alonso, Lawyer, Marlin Blue, IUMI IPP

The international reach and strategic importance of maritime law requires proficient management of forum shopping and selection, which is essential for addressing litigation challenges effectively. Amid multiple jurisdictions and time constraints, legal representatives must promptly protect their clients' interests. Conditioned by legal processes in various countries, selecting valid forums in maritime conflicts is fundamental. 

Nexus points in international maritime transportation play a key role in determining the appropriate forum for legal disputes. Several factors must be considered in this context.  

One critical factor is the terms and conditions of the Bill of Lading. It is common for carriers to insert a jurisdiction clause in the BL, which pre-selects the forum for any disputes. Such clauses can also be found in the Charter-Party, Rider Clauses, or the Fixture Note. 

However, many courts in other nexus points may not accept such clauses for various reasons. Some jurisdictions do not recognise foreign jurisdiction clauses (or those outside the EU), do not accept clauses that limit rights unless they are separately accepted and signed, or they may consider such clauses non-binding for parties not listed in the BL. 

Another essential consideration is the relevant locations related to the transportation contract, which may be considered viable jurisdictional forums. These include the countries of origin and destination of the cargo, strategic ports of call along the route, countries where bills of lading are issued and signed, and crucial financial transaction locations.  

Additionally, jurisdictions where vessels are registered and where shipping companies operate must be considered, as these jurisdictions may offer varying degrees of strength in enforcing judgments from foreign courts. 

Each of these elements significantly influences jurisdiction, the laws governing transportation contracts, the rights and responsibilities of the parties, as well as relevant international regulations and conventions. 

In essence, maritime transportation's multi-state connections provide both advantages and challenges. Procedural complexities, conflicts of laws, and enforcing judicial decisions can be difficult. Parties must carefully weigh these factors when handling disputes involving multiple connections, devising strategic approaches to address legal challenges effectively. 

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