The View of European Business Stuart Popham 14 March 2008 Survey Results

The View of European Business · 14 March The 2005 Survey 2005 Survey on European Contract Law 175 businesses 83% viewed favourably or very favourably the concept of a harmonised European contract law 83% also want the ability to choose between different laws 30% in favour of a European contract law replacing national laws

The View of European Business · 14 March The 2008 Survey Carried out by the Institute of European and Comparative Law 77 (so far) businesses across Europe

The View of European Business · 14 March Choice of contract law remains important 91% regard it as important (45%)or very important (46%) to be able to choose the governing law of a contract 85% often (42%) or occasionally (43%) do choose 66% agree that there is considerable variation in contract laws across Europe 65% would choose a law from outside Europe if no European law was suitable

The View of European Business · 14 March What are the preferred laws? First answers only

The View of European Business · 14 March What laws are avoided?

The View of European Business · 14 March What are the most used laws?

The View of European Business · 14 March International “laws” 70% agree strongly (41%) or mildly (29%) that cross border transactions would be facilitated if there were a European or global contract law to choose But 81% never (57%) or almost never (24%) use lex mercatoria or general principles of international contract law 79% never (59%) or almost never (20%) use UNIDROIT’s Principles or International Commercial Contracts 95% never (91%) or almost never (4%) used PECL

The View of European Business · 14 March What influences the choice of law? Substantive contract law4.51 Corruption4.19 Quality of judges and courts4.13 Speed of dispute resolution4.12 Predictability of outcomes4.09 Fairness of outcomes4.03 Costs3.72 Tax law3.70 Quality of lawyers3.65 Language3.64 Absence or availability of disclosure/discovery3.31 Absence or availability of class/collective action procedures3.03 Mediation3.01 Cross-examination2.97 Absence or availability of judicial encouragement of settlement2.83

The View of European Business · 14 March Law and jurisdiction 84% agree strongly (36%) or mildly (48%) that there are considerable variations in civil justice systems across Europe 84% agree strongly (40%) or mildly (44%) that these variations affect their choice of contractual governing law 66% agree that there are considerable variations in contracts laws across Europe 74% agree strongly (34%) or mildly (40%) that these variations affect their choice of jurisdiction to resolve disputes

The View of European Business · 14 March The importance of choice of jurisdiction 91% consider it very important (68%) or important (31%) to chose the dispute resolution forum 85% often (42%) or occasionally (43%) do so 64% would choose a forum outside Europe no European forum was suitable

The View of European Business · 14 March What are the preferred fora?

The View of European Business · 14 March Preferred fora away from home First answers only

The View of European Business · 14 March What are the least preferred fora?

The View of European Business · 14 March What are the most used fora?

The View of European Business · 14 March What are the most favourable fora? First answers only

The View of European Business · 14 March What are the least favourable fora? First answers only

The View of European Business · 14 March What influences the choice of jurisdiction? Fairness in outcomes4.43 Quality of judges and courts4.43 Corruption4.39 Predictability of outcomes4.30 Speed of dispute resolution4.22 Substantive contract law4.12 Language4.05 Costs3.86 Quality of lawyers3.75 Tax law3.43 Absence or availability of disclosure/discovery3.39 Mediation3.14 Absence or availability of cross-examination3.11 Absence of availability of class/collective action procedures3.01 Absence of availability of judicial encouragement of settlement2.96

The View of European Business · 14 March Jurisdictions and trade 82% disagree strongly (60%) or mildly (22%) that variations in civil justice systems deter companies from doing business in certain jurisdictions 57% disagree strongly (24%) or mildly (33%) that differences in civil justice systems constitute a barrier to trade 33% agree mildly and 8% agree strongly

The View of European Business · 14 March Financial impact of jurisdictions Do differences in European civil justice systems have a financial impact on your business?

The View of European Business · 14 March A harmonised European civil justice? 79% favourable (43%) or very favourable (36%) But how?

The View of European Business · 14 March “It is very difficult to learn each of the different judicial systems in Europe. It is better to have only one European system.” “ There is a realm to harmonise certain systems. But to harmonise all of the systems would take too long and the results would be worse that what we have right now because of the need to compromise: many good systems would be lost.” “To a certain degree the scepticism on a European civil justice system might be based more on prejudice than fact, especially also our scepticism about common law. We tend to avoid these jurisdictions nevertheless.”

The View of European Business · 14 March Arbitration 61% prefer arbitration to court proceedings because Confidentiality (50%) Speed (30%) Enforceability (7%) Informality (7%) Cost (4%) Particularities of the transaction (2%)

The View of European Business · 14 March Conclusion There is an internationally competitive market in law and dispute resolution Parties want, and will exercise, choice Law and jurisdiction are intimately connected The principal factors that influence choice are general in nature

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