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Rogerson - Choice of Law in Tort A Missed Opportunity
Rogerson - Choice of Law in Tort A Missed Opportunity
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access to The International and Comparative Law Quarterly
A. Introduction
Under the traditional common law rules a plaintiff wishing to recover dama
the English courts for harmful actions by a defendant abroad' will have an
struggle. First, the plaintiff has to persuade the court to take jurisdiction ov
matter.2 Second, as a rule the double-actionability test in Phillips v. Ey
restated by Lord Wilberforce in Boys v. Chaplin4 must be satisfied. In or
succeed under that test the plaintiff must show that liability in the domestic l
torts would arise between the actual parties to the action, assuming the acti
have all taken place in England; and that the defendant is liable for a civil
resulting from his conduct under the law of the place where the wrong was co
ted (the lex loci delicti commissi).5 In exceptional cases, where flexibil
required to avoid injustice, a plaintiff who is denied recovery under the ge
rule might succeed if the law with the most significant relationship with the o
rence and the parties would make the defendant liable. In the 25 years sinc
v. Chaplin was decided there has been much academic criticism of the ch
law rule, but few reported cases. However, in the past year two unrelated de
ments have brought the area to prominence again. The first is the case of R
Insurance v. Bouygues SA.6 The second is the Private International Law
(Miscellaneous Provisions) Bill introduced in the House of Lords in November
1994, which seeks to replace the common law on choice of law in tort.
1. Alleged wrongful conduct of the defendant which was done in England does not raise
any choice of law problem even if there are substantial connections between the parties and
another country. English domestic law of tort will alone determine whether the defendant is
liable (Szalatnay Stacho v. Fink [1947] K.B. 1). Even if some actions of the defendant were
done abroad the English court can still hold that the tort was committed "in substance" in
England. In that case no choice of law arises and the English domestic law of tort solely will
apply (Metall und Rohstoff AG v. Donaldson, Lufkin & Jenrette Inc. [1990] 1 Q.B. 391). The
effect of the Private International Law (Miscellaneous Provisions) Bill changes the method
by which these cases were decided but the results would probably be the same.
2. The decision in Metall und Rohstoff, ibid, has made it unlikely that the English courts
will take jurisdiction over torts found to have been committed "in substance" abroad. Even if
the writ has been served on a defendant in England, the defendant can still ask the court to
stay its proceedings on the basis that England is not the forum conveniens where the tort is
committed elsewhere (cf. The Albaforth [1984] 2 Lloyd's Rep. 91).
3. (1870) L.R. 6 Q.B. 1.
4. [1971] A.C. 356. There are doubts about the exact ratio decidendi of Boys v. Chaplin.
However, both the Court of Appeal and now the Privy Council have adopted r.203(1) of
Dicey and Morris, The Conflict of Laws (12th edn, 1993), pp.1487-1488, which is derived
from Lord Wilberforce's opinion.
5. That place is determined according to English rules as the locus delictus is a connecting
factor.
6. [1994] 3 W.L.R. 926.
7. (1987) 36 I.C.L.Q. 437, 442.
under English law would mean that the court may have to adjudicate on liability
without the cultural infrastructure to underpin the public policy decisions that may
be necessary. The rule does serve to keep out of the English courts actions for
wrongs that English law does not consider so harmful as to allow recovery in
respect of them. Examples include actions in respect of privacy, some actions for
economic loss and nervous shock, and actions under foreign antitrust legislation.
The rule also prevents a plaintiff from recovering in circumstances which would
give rise to strict liability under another law but in which the plaintiff cannot prove
negligence as would be necessary under English law. The counter-argument is that
the justification for the modern law of tort is not so similar to that of criminal law.
In many ways the law of tort now bears more similarity to the law of contract.
Indeed, often cases have facts which give rise to overlapping liability in tort and
contract or quasi-contract.'2
The rule earns the epithet "parochial" as it results in an application of English
law even if there is no connection between the facts and England.'3 Giving such a
dominant role to the lexfori is not in conformity with modern notions of the func-
tion of a choice of law rule.14 The lex fori is not made part of other choice of law
rules except that it is applied where English notions of public policy demand it or
where the issue before the court is one of procedure. The courts have appeared
willing, in other areas where the foreign law is properly pleaded and proved, to
allow a case to be decided on its merits according to some unfamiliar rules and
concepts. As well as the rule being inconsistent with the principles of choice of law,
it is unnecessary: the same results could be achieved in other ways. The choice of
law rule can be constructed in such a way as to refer the issue to English law where
there is sufficient connection with England to justify it in the same way that other
choice of law rules do. The policy of the lex fori could be protected in appropriate
circumstances by using the public policy exception to prevent liability arising
under a foreign law being recoverable in the English courts. Public policy is an
"unruly horse" but it can be ridden with care. It is no stranger to the courts in the
domestic law of tort. Alternatively, characterisation of the issue may prevent the
claim from arising in the English courts. Where the liability is of such a foreign
kind that the English courts cannot describe it as "tort" at all then the issue will not
be determinable in English law unless another category of liability can be found.'5
12. E.g. in The Evia Luck [1992] 2 A.C. 152, at first instance [1986] 2 Lloyd's Rep. 165;
Sayers v. International Drilling Co. Ltd [1971] 1 W.L.R. 1176; Coupland v. Arabian Gulf
[1983]1 W.L.R. 1151. These cases are especially hard as the different characterisations of the
particular issue can lead to different results. However, the same problem arises in domestic
law where the defendant may be liable in tort but not in contract and the plaintiff is allowed
to choose the most favourable category.
13. The only connection with Hong Kong in Red Sea Insurance seems to have been that
the insurance company was incorporated there. Its head office was in Saudi Arabia and all
the other elements of the case seem to have been connected to Saudi Arabia: the building
was constructed there, the policy of insurance was governed by Saudi Arabian law and so
were all the contracts between the various defendants.
14. There are a number of theories of the need for choice of law rules. The main justifica-
tion is that they implement the legitimate expectations of the parties and select the most
appropriate law to govern the issue (see e.g. Dicey and Morris, op. cit. supra n.4, at pp.5-6).
15. That might not be an attractive solution for some; see Carter (1991) 107 L.Q.R. 405,
408-409.
16. DefLepp Music v. Stuart-Brown [1986] R.P.C. 273 and the Australian case of Ander-
son v. Eric Anderson (Radio & TV) Pty Ltd (1965) 114 C.L.R. 20 are the only ones strictly in
point. The former could have been decided on the basis that in an action for alleged breach of
copyright under the Copyright Act 1956 the correct choice of law rule was English law rather
than forcing the liability for "harm" into the general tort choice of law rule.
17. [1971] A.C. 356, 383, 387, 389 and 400.
18. Church of Scientology v. Commissioners of the Metropolis (1976) 120 S.J. 690 and
Coupland v. Arabian Gulf Oil Ltd [1983] 3 W.L.R. 1136.
19. [1992] 3 All E.R. 14.
20. [1970] 3 N.S.W.R. 511.
21. (1988) 80 A.L.R. 362.
22. The Law Commission and the Scottish Law Commission Report on Private Inter-
national Law: Choice of Law in Tort and Delict (Law Com. No.193, Scot. Law Com. No.129).
23. American Law Institute Restatement 2nd. Conflict of Laws (1971).
24. Almost all the academic writing on the subject argues likewise. There are some
authors who argue for the application of the lexfori alone; see Ehrenzweig (1968) 17 I.C.L.Q.
1.
34. In passing, Lord Slynn noted that: "There is obviously a difference between a court
being able to apply its own law exclusively and it being required to apply exclusively another
system. This, however, is not necessarily fatal to the contention that only the lex loci delicti be
applied since the foreign law can be proved and it is clear that in appropriate cases the lex loci
delicti can be applied to give a just result when the lexfori might not do so" ([1994] 3 W.L.R.
926, 940). It could be contended that this provides justification for choice of law rules in
general, and so would explain abolition of the rule in The Halley rather than perpetuation of
any exception to it.
35. The parties had expressly chosen Saudi Arabian law to govern their contractual
relationships: ibid.
36. Private International Law (Miscellaneous Provisions) Bill, clause 10.
37. [1994] 3 W.L.R. 926, 939.
tion than by the rule. First, the arguments Lord Slynn used to justify the appli-
cation of the exception were largely attacks on the application of the lex fori. It is
probable that they can be deployed to weaken the role of the lex fori and allow
wider use of the exception. Second, he did not offer clear guidelines to define the
exceptional case for the future, beyond a reference to the interests of justice. The
courts now have considerable latitude in weighing factors and deciding whether
the general rule or the exception should be adopted. In both Boys v. Chaplin and
Red Sea Insurance v. Bouygues SA all the contacts bar one pointed to one country.
In the first case the "odd" contact was the place of the accident and in the second it
was the place of incorporation of the defendant. Neither of these factors is mini-
mal. If "in the interests ofjustice" either of these factors can be ignored in favour of
others having a more significant relationship with the parties and the occurrence
so may any other factor. The court is invited to look at everything and decide what
the interests of justice require. If the interests of justice require that the defendant
should not be liable, then the double-actionability rule might apply. However, that
result can be in the interests of justice only if a law with a significant relationship
with the facts and the parties would deny the plaintiff recovery. If, on the other
hand, it is just for the plaintiff to recover then the law with the most significant
relationship would apply, be that the lex fori or the lex loci delicti or, presumably,
some other law.38 In effect, the court will be applying the law with the most signifi-
cant relationship to the parties and the occurrence although it might describe its
conclusion differently.
38. The analysis permits a third law (neither lex loci delicti nor lexfori) to be applicable as
the law with the most significant relationship with the parties and the occurrence although
there is no case law to support it.
39. [1994] 3 W.L.R. 926, 933.
40. Weintraub (1977) 41 Law & Contemp. Prob. 146, 148.
41. The role played by the US Constitution in conflict of laws in the US should not be
underestimated. There is no such equivalent force in English conflict of laws. Choice of law
rules used in the US therefore need to be investigated carefully before being adopted by the
English courts.
42. Lord Wilberforce in Boys v. Chaplin did use a policy-orientated argument to deny
Maltese law's application, as did Deputy Judge Kay QC in Johnson v. Coventry Church
International Ltd [1992] 3 All E.R. 14.
43. Boys v. Chaplin [1971] A.C. 356, 387.
44. [1968] 2 Q.B. 1, 4.
45. See e.g. in relation to financial torts, Reed [1994] L.M.C.L.Q. 248.
46. The insurance company could, at a pinch, have argued that the harm for which it wa
counterclaiming was the amount it would have had to pay out on the policy if it had lost th
case brought by the insured. That payment would have to be made in Hong Kong where th
case was being heard and so the harm would be suffered there, making Hong Kong the locu
delictus. However, the insurance company was claiming a right of subrogation for loss suf
fered by the insured. The real harm (to the insured) was obviously suffered in Saudi Arabi
where the defendants had allegedly caused the physical damage to the buildings and to argu
that the harm occurred anywhere else would be artificial.
47. Metall und Rohstoff, supra n.1.
48. The test has been most used to determine whether the English court should take juris
diction under RSC Ord.ll. There is weak authority that the same test should be used t
locate the lex loci delicti commissi as a matter of choice of law as required by the double
actionability test (Robert Goff LJ in the Court of Appeal in Armagas Ltd v. Mundogas SA
[1986] A.C. 717, 740 approving Staughton J [1985] 1 Lloyd's Rep. 1, 24-25). However, th
Ord.11 cases need to be used with caution before the rules for the locus of a tort are adopte
in choice of law. First, the element of the use of the judge's discretion is difficult to disen
tangle from the issue of the locus of the tort. Second, the court has only to decide if the tort
was committed within the jurisdiction not where exactly the tort was committed, i
elsewhere.
49. See Dicey and Morris, op. cit. supra n.4, at pp.1509-1512; Cheshire and North, op. cit.
supra n.11, at pp.552-557.
50. Private International Law (Miscellaneous Provisions) Bill, clause 11(2). The Bill
excludes "defamation claims" from its provisions (clause 13(1)). A "defamation claim" is
defined broadly as a claim under English law for libel, slander or malicious falsehood or any
claim analogous to such actions under the law of another country. The common law will still
operate in respect of such claims.
51. Idem, clause 12(1).
52. Idem, clause 12(2).
53. Preface to Cheshire, Private International Law (1935).
* Lecturer, Cambridge University, Fellow of Gonville & Caius College. The writer would
like to thank Mr J. G. Collier for his helpful comments on the draft of this article. Any errors
which remain, however, are undoubtedly her own.