Mechanism of Application of the Public Policy Clause as a Ground for Limitation of the Application of Foreign Law in Private International Law
Abstract
The article analyzes the essence and peculiarities of the implementation in practice of the mechanism of application of the public policy clause (ordre public) as a basis for limiting the effect of foreign law in private international law. The author argues that the introduction of a unified mechanism for the application of the public policy clause as a basis for restricting the effect of foreign law is in the interests of both the international community and individual states. The sources for determining the constituent elements of the mechanism are regulations (international and national) and judicial (arbitration) practice. Based on their study, it is summarized that the mechanism of application of the public policy clause is a complex legal remedy, the proper functioning of which is impossible without the jurisdiction to take preliminary action to invoke the conflict of laws the first sends to. It is established that the basis for the application of the public policy clause in order to limit the effect of foreign law in the country of the court is a violation of public policy. Discussions arise about the normative consolidation and the peculiarities of establishing conditions in law enforcement activities, the existence of which allows the jurisdictional body to apply such reservations. These conditions, although they may be considered in isolation, function as a whole, forming an interconnected system of restrictions and principles designed to ensure that the court complies with the minimum substantive and formal requirements for the application of the public policy clause. The conditions for applying the reservation in cases of exclusion or restriction of foreign law traditionally include: 1) contradiction of public policycannot be stated by the court on the basis of inconsistency or difference of foreign law from the provisions of public policy; 2) the incompatibility of the mentioned consequences must be, on the one hand, obvious and, on the other hand, sufficiently and consistently substantiated by a court or arbitration tribunal; 3) the difference between the legal, political or economic systems of the relevant foreign state from the systems of the court state cannot serve as a justification for refusing to apply the law of a foreign state.
References
Boiarskyi, Ye. D. (2017) Obmezhennia zastosuvannia koliziinykh norm u mizhnarodnomu pryvatnomu pravi Ukrainy : dys. … kand. yuryd. nauk. Kyiv.
Mills, A. (2008) The Dimensions of Public Policy in Private International Law. Journal of Private International Law, 4 (2), 201–236. Retrieved from: https://doi.org/10.1080/17536235.2008.11424339.
Dickinson, A. (2012) The Role of Public Policy and Mandatory Rules within the Proposed Hague Principles on the Law Applicable to International Commercial Contracts. Sydney Law School Research Paper. № 12/81. Retrieved from: http://bit.ly/3jydjGl.
Lorenzen, E. G. (1924) Territoriality, Public Policy and the Conflict of Laws. Yale Law Journal, 33 (7), 736–751. Retrieved from https://doi.org/10.2307/788137.
Morozova, Ju. G. (2001) Ogovorka o publichnom porjadke v mezhdunarodnom chastnom prave: ponjatie i sovremennyj porjadok primenenija : diss. … kand. jurid. nauk. Moskva.
Ghodoosi, F. (2015) The Concept of Public Policy in Law: Revisiting the Role of the Public Policy Doctrine in the Enforcement of Private Legal Arrangements. Nebraska Law Review, 94, 685–736. Retrieved from: http://bit.ly/3aSX9n5.
Kurochkin, S. A. (2008) Narushenie publichnogo porjadka kak osnovanie dlja otmeny reshenij tretejskih sudov, mezhdunarodnyh kommercheskih arbitrazhej i otkaza v ih priznanii i privedenii v ispolnenie. Tretejskij sud, 4, 118–128.
Malskyi, M. M. (2015) Publichnyi poriadok u transnatsionalnomu vykonavchomu protsesi. Visnyk Natsionalnoho universytetu «Lvivska politekhnika». Yurydychni nauky, 827, 79–84.
Franzina, P. (2013) Sovereign Bonds and the Conflict of Laws: A European Perspective. Forthcoming in Studi in onore di Luigi Costato, 1–23. Retrieved from: http://bit.ly/2Ooq4b5.
Horda, Yu. I. (2015) Analiz tlumachennia ta zastosuvannia zasterezhennia pro publichnyi poriadok cherez pryzmu sudovoi praktyky. Pravo i suspilstvo, 1, 68–74.
Brun, M. I. (1916) Publichnyj porjadok v mezhdunarodnom chastnom prave. Petrograd : Senatskaja tipografija.
Makarov, A. N. (1924) Osnovnye nachala mezhdunarodnogo chastnogo prava. Moskva : Juridicheskoe izdatel'stvo Narkomjusta RSFSR.
Baldyniuk, V. V. (2008) Zabezpechennia zastosuvannia koliziinoi normy: kvalifikatsiia, zvorotne vidsylannia, obkhid zakonu v mizhnarodnomu pryvatnomu pravi : avtoref. dys. … kand. yuryd. nauk. Kyiv.
Guedj, T. G. (1991) The Theory of the Lois de Police, A Functional Trend in Continental Private International Law — A Comparative Analysis with Modern American Theories. The American Journal of Comparative Law, 39 (4), 661–697. Retrieved from https://doi.org/10.2307/840737.
Kessedjian, C. (2007) Public Order in European Law. Erasmus Law Review, 1 (1), 25–36.
Novikova, O. V. (2011) Ogovorki o publichnom porjadke i sverhimperativnyh normah v anglijskoj doktrine mezhdunarodnogo chastnogo prava : diss ... kand. jurid. nauk. Moskva.
Kysil, V. I. (2001) Pytannia publichnoho poriadku i zakonodavche rehuliuvannia v mizhnarodnomu pryvatnomu pravi. Naukovi zapysky Natsionalnoho universytetu «Kyievo-Mohylianska akademiia», 19 (1), 212–220.
Lagarde, P. (1998) Ordre public. Encyclopedie Juridique Dalloz, Répertoirede Droit International, III (47), 1–57.
Stepaniuk, A. A. (2002) Zastosuvannia koliziinykh norm shchodo spadkuvannia v mizhnarodnomu pryvatnomu pravi : dys. … kand. yuryd. nauk : 12.00.03. Kharkiv, 206 ark.
Scarman, J. (1968) Re Fulds Estate (№ 3). 870 p.
Recognition and Enforcement of Arbitral Awards. IBA Study on Public Policy. (2015). Retrieved from International Bar Association: http://bit.ly/39Ed6Lz.
Poon, N. (2012) Striking a Balance between Public Policy and Arbitration Policy in International Commercial Arbitration. Singapore Journal of Legal Studies. July, 185–195.
Convention of 15 June 1955 on the law applicable to international sales of goods. (N.d.) Retrieved from Hague Conference on Private International Law: http://bit.ly/3p9JcGd.
Convention of 2 October 1973 on the Law Applicable to Products Liability. (N.d.) Retrieved from Hague Conference on Private International Law: http://bit.ly/2Z3XRZ0.
Convention of 14 March 1978 on the Law Applicable to Agency. (N.d.) Retrieved from Hague Conference on Private International Law. URL : http://bit.ly/3cW2z3e.
Convention of 1 July 1985 on the Law Applicable to Trusts and on their Recognition. (N.d.) Retrieved from Hague Conference on Private International Law. URL : http://bit.ly/3q7IISi.
Convention of 22 December 1986 on the Law Applicable to Contracts for the International Sale of Goods. (N.d.) Retrieved from Hague Conference on Private International Law: http://bit.ly/3cVnymT.
Convention of 1 August 1989 on the Law Applicable to Succession to the Estates of Deceased Persons. (N.d.) Retrieved from Hague Conference on Private International Law. URL : http://bit.ly/3p5u10W.
Principles on Choice of Law in International Commercial Contracts. (N.d.) Retrieved from Hague Conference on Private International Law: http://bit.ly/3qiNTiJ.
Convention on the law applicable to contractual obligations opened for signature in Rome on 19 June 1980. (N.d.) Retrieved from EUR-Lex: http://bit.ly/2YYLPQP.
Regulation (EC) No 593/2008 of the European Parliament and of the Council of 17 June 2008 on the law applicable to contractual obligations (Rome I). (N.d.) Retrieved from EUR-Lex: http://bit.ly/3rBsBNb.
Regulation (EC) No 864/2007 of the European Parliament and of the Council of 11 July 2007 on the law applicable to non-contractual obligations (Rome II). (N.d.) Retrieved from EUR-Lex: http://bit.ly/3a0YIA1.
Council Regulation (EC) No 4/2009 of 18 December 2008 on jurisdiction, applicable law, recognition and enforcement of decisions and cooperation in matters relating to maintenance obligations. (N.d.) Retrieved from EUR-Lex: http://bit.ly/3tKYWTC.
Kodeks mizhnarodnoho pryvatnoho prava (Kodeks Bustamante) (Havana, 20 liutoho 1928 r.). (N.d.) Retrieved from Verkhovna Rada Ukrainy. Zakonodavstvo Ukrainy: https://bit.ly/2MT1PkG.
Spanish Civil Code (approved by Royal Decree of July 24, 1889). (N.d.) Retrieved from Noticias Departamento: http://bit.ly/38x9QS7.
Magyar Közlöny 2017. évi 54. Szám. (N.d.) Retrieved from Magyar Közlöny: http://bit.ly/2uFNa3x.
Grazhdanskij kodeks Respubliki Belarus' ot 07.12.1998 g. № 218–Z. (N.d.) Retrieved from Nacional'nyj centr pravovoj informacii Respubliki Belarus': https://bit.ly/3q9MRFE.
Grazhdanskij kodeks Portugalii 1966 goda. (N.d.) Retrieved from Nacional'nyj issledovatel'skij universitet «Vysshaja shkola jekonomiki»: http://bit.ly/2uGfLFX.
Bundesgesetz vom 15. Juni 1978 über das internationale Privatrecht (IPR-Gesetz). (N.d.) Retrieved from JUSLINE Österreich: http://bit.ly/31XXShT.
Federal Act on Private International Law of 18 December 1987 in effect as from 1st January 2019. andreasbucher-law.ch. (N.d.) Retrieved from: http://bit.ly/2vFKEKp.
Act of 4 February 2011 on Private International Law. (N.d.) Retrieved from Mateusz Pilich — Private International Law: http://bit.ly/2SwOIpn.
Einführungsgesetz zum Bürgerlichen Gesetzbuche. (N.d.) Retrieved from Das Bundesministerium der Justiz und für Verbraucherschutz: http://bit.ly/3bIKPFq.
Bulgarian Private International Law Code. (N.d.) Retrieved from International Federation of Red Cross and Red Crescent Societies: http://bit.ly/2SufG14.
Civil Code of the Netherlands. (N.d.) Retrieved from Dutch Civil Law (DCL): http://bit.ly/2SMFXXk.
The Act dated 25th January 2012 governing private international law. (N.d.) Retrieved from Ministerstvo spravedlnosti České republiky: https://bit.ly/36XBNnq.
Law of 16 July 2004 holding the Code of Private International Law. (N.d.) Retrieved from Interamerican Association of Private International Law Professors: https://bit.ly/3tGJoQU.
Zakon Horvatii o mezhdunarodnom chastnom prave (ot 04.10.2017 g.). (N.d.) Retrieved from Nacional'nyj issledovatel'skij universitet «Vysshaja shkola jekonomiki»: https://bit.ly/2On9R5X.
Pro mizhnarodne pryvatne pravo. Zakon Ukrainy vid 23.06.2006 r. № 2709–IV (2005). Vidomosti Verkhovnoi Rady Ukrainy, 32, 422.
Grazhdanskij kodeks Rossijskoj Federacii. Chast' 3. (N.d.) Retrieved from Konsul'tant Pljus: https://bit.ly/3aMHyp7.
Sonnenberger H.-J. (2010) Münchener Kommentarzum BGB. München, Verlag C.H. Beck.
Arnold, R., Meindl, E. (2011) The EU Charter of Fundamental Rights and Public Policy in International Arbitration Law. Czech (& Central European) Yearbook of Arbitration, I, 87–105.
Zhilsov, A. N. (1995) Mandatory and Public Policy Rules in International Commercial Arbitration. Netherlands International Law Review, 42 (1), 81–119. Retrieved from: https://doi.org/10.1017/s0165070x00003387.
Nahush, O. M. (2012) Doktryny publichnoho poriadku u mizhnarodnomu pryvatnomu pravi: retrospektyvnyi analiz. Pravova derzhava, 15, 258–263.
Rebrysh, B. Yu. (2017) Zasterezhennia pro publichnyi poriadok ta zastosuvannia inozemnoho zakonodavstva u spravakh shchodo zakhystu vid nedobrosovisnoi konkurentsii. Pravo i suspilstvo, 1, 63–72.
Shulakov, A. A. (2016) Principy gollandskoj kollizionnoj doktriny i zakonodatel'stvo SShA i evropejskih stran po mezhdunarodnomu chastnomu pravu. Lex Russica, 11 (120), 117–125.
Mosconi, F. (1989) Exceptions to the Operation of Choice of Law Rules. Recueil des Cours: Collected Courses of The Hague Academy of International Law, 217, 19–203. Retrieved from https://doi.org/10.1163/1875-8096_pplrdc_ej.9780792310471.009_214.
Krohalev, S. V. (2005) Kategorija publichnogo porjadka v mezhdunarodnom grazhdanskom processe. Sravnitel'noe issledovanie na osnove pravovyh sistem Rossii i Francii : dis. … kand. jurid. nauk. Ekaterinburg.
Zviahina, I. N. (2018) Pytannia publichnoho poriadku pid chas vyznannia ta nadannia dozvolu na vykonannia rishen mizhnarodnoho komertsiinoho arbitrazhu v Ukraini. Pryvatne ta publichne pravo, 1, 25–28.
Nutting, C. B. (1935) Suggested Limitations of the Public Policy Doctrine. Minnesota Law Review, 19, 196–209.
Régie nationale des usines Renault SA v MaxicarSpA (Case C-38/98) [2000] ECR I-2973, para. 29. (N.d.) Retrieved from CURIA: http://bit.ly/37Cjt0I.
Judgment of the Court (First Chamber) of 2 April 2009. Marco Gambazzi v DaimlerChrysler Canada Inc. and CIBC Mellon Trust Company. (N.d.) Retrieved from EUR-Lex: http://bit.ly/3rPY9zl.
Nagush, O. N. (2014) Public policy clause in private international law. Visnyk ONU im. I. I. Mechnykova. Pravoznavstvo, 19 (4(25)), 84–90.
