Gasser GmbH v. MISAT Srl
Citation and Court
Case C-116/02, [2003] ECR I-14693 (Court of Justice of the European Union)
Facts
An Austrian supplier (Gasser) contracted with an Italian distributor (MISAT) containing an exclusive Austrian jurisdiction clause. MISAT first filed proceedings in Italy; Gasser then filed in Austria pursuant to the contractual clause. Under the Brussels Regulation, Italy was the court first seised. Austria sought to proceed despite being named in the forum selection clause.
Issue
Whether the Brussels Regulation’s lis pendens rule (first-filed court takes priority) applies even when the second-seised court has an exclusive choice-of-court agreement in its favor.
Holding
The Brussels Regulation’s lis pendens rule requires the second-seised court to stay its proceedings until the first-seised court has ruled on jurisdiction, even where the second-seised court has an exclusive jurisdiction clause in its favor.
Rule / Doctrine
Under the Brussels Regulation (now Brussels I Recast), the court first seised must be allowed to determine its own jurisdiction before the second court may proceed. A contractual forum selection clause does not override the first-filed rule under the Regulation.
Significance
Gasser became notorious for enabling “torpedo” litigation tactics — a defendant could file in a slow EU court first to delay proceedings in a forum named by contract. The Brussels I Recast (2012) subsequently amended the lis pendens rule to give priority to the chosen forum when there is an exclusive jurisdiction agreement.