30 May 2019

The question of competent court and applicable law in a hotel contract

A recent judgment of the Mytilene Court of First Instance raised a very topical issue, related to the international jurisdiction of Greek Courts in the case of hotel contracts, despite the prorogation clause in favour of the court of some other members state and to the application of Greek law, in the case of absence of choice by the parties. The position of the court was that it was indeed competent to hear the case, despite the prorogation clause. This judgment is one of the many of Greek courts towards the same direction. All these judgments have not been equally persuasive and a scrutiny of the facts of each case should be made. On the question of the applicable law, the court ended up applying Greek law, on the basis of the location of the hotel in Greece. This point also merits special attention, esp. in case that the parties have chosen law, which does not seem to have been so, in the present case.



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