Spanish court upholds a hybrid dispute resolution clause

In a judgment dated 18 October, the Provincial Court of Madrid upheld a hybrid dispute resolution clause that referred disputes to either international arbitration under the arbitration rules of the Netherlands Arbitration Institute or the courts of ‘s-Hertogenbosch (in the Netherlands) (AP Madrid, Auto 147/2013). The judgment is important because it is the first one in Spain that clearly recognises the validity of hybrid arbitration clauses.

In 2003, a Spanish truck dealership and a local subsidiary of a Dutch truck manufacturer entered into several agreements containing the hybrid clause.

A dispute arose between the parties concerning unfair competition and anti-trust law issues in 2010, and the Spanish truck dealership applied to the Spanish court. The Dutch manufacturer and its subsidiary claimed that the Spanish court did not have jurisdiction…

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