Choice of Court Agreements Act
The Choice of Court Agreements Act (CCAA) is a federal law that was enacted by Congress in 2013. This law provides a framework for enforcing exclusive choice of court agreements between parties in cross-border disputes.
Under the CCAA, parties to a cross-border agreement can agree to have any disputes that arise from the agreement adjudicated in a specific court. This is called an exclusive choice of court agreement and is enforceable under the CCAA.
The CCAA was enacted to address the lack of clarity in the enforcement of exclusive choice of court agreements in cross-border disputes. Prior to the CCAA, the enforcement of these agreements was often left to the discretion of individual courts, leading to inconsistent and unpredictable results.
The CCAA also provides a mechanism for the recognition and enforcement of foreign judgments that are the result of an exclusive choice of court agreement. This mechanism ensures that the judgment of the chosen court is recognized and enforced in the United States, even if the judgment is from a foreign court.
In addition to providing clarity and predictability in the enforcement of exclusive choice of court agreements, the CCAA also helps to promote international trade and commerce. By providing a uniform framework for the enforcement of these agreements, businesses can better manage the risks associated with cross-border transactions and feel more confident in their ability to manage disputes that may arise.
Overall, the Choice of Court Agreements Act is an important piece of legislation that helps to promote international trade and commerce by providing a uniform framework for the enforcement of exclusive choice of court agreements in cross-border disputes. As businesses continue to expand their operations into international markets, the CCAA will become an increasingly important tool for managing the associated risks.