Legal Question in Business Law in United Kingdom

US Jurisdiction

Our company is engaged in assisting airlines to locate aircraft and negotiate aircraft leases. We are in the process of arranging a lease between two African airlines. Another broker is also attempting to secure the same deal and through a law firm in America is threatening to sue us (in America) for �tortious interference with business relationships�. They are arguing that we knew of their involvement and if it was not for our interference they would have secured the lease, our argument is that we were simply competing for the same business. They are looking to recover lost profits, punitive damages and costs. Neither airline has signed a contract with either ourselves or the other broker.

Given that the interference alleged is between two African companies, we are a British company and the plaintiff is an African company can we argue that US courts have no jurisdiction?

If so can we ignore any court case?

Would the situation be any different if the plaintiff was American?

Would a US courts judgment in this case be enforceable in the UK � are there any reciprocal arrangements for enforcing judgments?

Incidentally we have no connections with America (i.e. no offices, property, employees etc..)


Asked on 11/18/05, 10:59 am

1 Answer from Attorneys
Richard Howard Richard Howard & CO

Re: US Jurisdiction

It is always a difficult decision whether to participate in US litigation of the more fanciful type because unlike the UK in most US states and in Federal Court the looser normally does not suffer a costs penalty.

Having had experience of similar cases you also need to look at the Jurisdictional issues in the African States concerned. If they are ex Britsh colonial countries they probably will not have any meaningful US general reciprocal enforcement like the UK.

You also need to assess how judgement proof you can make your self. It is assumed from your answer that you have not dealt with you African business via an off shore structure and if you are undertaling any signicany business in former UK dependancies there this is something that you should consider.The law on Tortious conspiracy to Injure in the UK has moved on to a more restrictive basis recently nad you may wnat to take some soundings in the US about and the prospects of a strike out on jurisdictional grounds.

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Answered on 11/21/05, 3:42 am


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