The Hague Convention On The Law Applicable To Traffic Accidents and Rome Ii Regulation
The Hague Convention On The Law Applicable To Traffic Accidents and Rome Ii Regulation
The Hague Convention On The Law Applicable To Traffic Accidents and Rome Ii Regulation
*
[email protected]
**
This paper was presented at the International Scientific Conference “Law in the context of
addressing the Challenges of the Contemporary World”, held at the Faculty of Law, University
of Niš, on 13th-14th April 2018.
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1. Introduction
In the proceedings of making a resolution on its own merits, the problem of
non-contractual liability for damage caused, legally and factually involving two
or more countries, creates a problem for competent authorities and opens the
problem of conflict of law resolution. The changes of rules on civil liability at a
national level affect the change of attitude regarding different kinds of liability
and the manner of indemnification. Particularly complex issues concern non-
contractual liability for damage caused by a traffic accident in situations with
an international element. The adoption of several international conventions
which contain substantive and conflict of law solutions has not eliminated the
problem of smaller or larger differences in regulating non-contractual relations.
Namely, courts usually apply the domestic law provisions, except when it comes
to the provisions of private international law i.e. conflict of law rules, which may
involve the application of the rules of a foreign legal system. It particularly refers
to the application of convention conflict of law rules.
The efforts of the Hague Convention regarding private international law to har-
monise the conflict of law issue resulted, inter alia, in enacting the Convention
on the Law Applicable to Traffic Accidents (hereinafter: the Hague Convention).
At the same time, the efforts of theory and practice of Acquis Communautaire
towards more righteous and efficient compensation for damage arising in many
cases actualised the harmonisation of non-contractual liability at the regional
level, which enabled the enacting of Regulation (EC) no. 864/2007 on applicable
law for non-contractual obligations (Rome II Regulation)1
Today the Regulation is universally applied within the EU, in relation to interior
disputes as well as in relation to disputes with an international element. Thus,
the European legislation abandons the double track of private international law,
which includes different legal provisions on private legal disputes involvingMem-
ber States subject matterin relation to the non-member States, regarding the
harmful event arising after its entry into force.
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М. Крвавац | стр. 141-156
The Convention contains the harmonised rules regarding law applicable to civil
non-contractual liability for damage arising from a traffic accident, whichis de-
fined as any accident involving one or more vehicles and connected with traffic
on the public highway, in grounds open to the public or in grounds to which
certain persons have a right of access. Accordingly, the Convention accepts the
rule on application of the law on non-contractual liability for damage arising
out of traffic accidents in connection with the place of accident, i.e. it assumes
a regular conflict of law rule which provides for application of the substantive
law of the State where the accident occurred.3 The rule is adjusted to the spe-
cifics of road traffic made objective according to certain facts in a particular
case. The objectives of this harmonisation are: to remove the uncertainty of the
general phrase (“close connection with the place of accident” which could lead
to different solutions for a longer period of time), until the court practice of the
signatory countries is harmonised, considering the fact that a judge decideson
the merits of each case; to optimally adjust the conflict of law to the specifics of
the road traffic, and to exclude the possibility of resolving the conflict of laws
which would be the result of accidental circumstances.
Lex loci delicti commissi remains the basic conflict of law convention rule. It im-
plies the applicability of the internal law of the State in which the damage was
caused by a traffic accident, which excludes the use of renvoi (sending back and
redirecting to another law). At the same time, the Convention introduces a new
fact into the existing system of conflict of laws, i.e. the application of the law
of the place of registration of the vehiclebased onrelevant facts, when only one
motor vehicle took part in the accident but it is registered in the State which is
not the State of the accident; or when several vehicles registered in the same
State, which is not the State of the accident, took part in the accident.4 In case of
Lithuania, Latvia, Luxembourg, Macedonia, Morocco, Montenegro, the Netherlands, Ukraine,
Austria, Poland, Serbia, Slovenia, Slovakia, Czech Republic, Belarus, and Switzerland. Retrivied
21 July 2018 from www.hhcch.com
3 Article 3 of the Convention.
4 Article 4 (a) (b) of the Convention. From foreign court practice: The judgement of the Court
of Appeals in Paris, June 1981, in the dispute Brandicort v Bigu regarding a traffic accident in
Morocco. In order to avoid the collision with a car registered in Morocco, Bendicot, driving
a car registered in France with 5 passengers in it, turned off the road and went down the
embankment. One person died in the accident and the others were injured, one of whom
brought an action against the vehicle owner for compensation of damage. The first instance
court applied Article 4 of the Hague Convention and ruled that the applicable law is French
law, i.e. the law of the place of the registration of the vehicle. The court decided that only one
vehicle with one licence plate took part in the accident. The determination of the applicable law
was even more difficult considering the fact that there was no direct contact of the vehicles,
but the driver of the French car avoided the collision and thus caused the accident. However,
the Court of Appeals decided that the Moroccan vehicle caused the accident and that two
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several people being involved in the accident, the applicable law is determined
for each one of them individually. The vehicles which are registered in several
countries, or are not registered at all, are subject to the law of the State of “ha-
bitual residence” which is applied instead of the law of the State of the place
of registration of a motor vehicle in the function of a conflict of law solution.
Applicable law includes the issues of conditions and scope of liability, reasons
for release from liability, nature and kind of damage, the circle of persons who
have the right to compensation of damage, burden of proof, liability of the prin-
cipal for the actions of a person under their control, statute of limitations, etc.
Besides, the applicable law regulates the right of the aggrieved party to initiate
a proceeding against the insurer, as well as any other issues which a judge finds
appropriate to apply.
The Convention does not oblige the signatory countries to introduce direct
action against the insurer, but directly refers to the applicable law according
to the conflict of law rules and states that the damaged parties have the right
to a direct action if such action is recognised according to the law applicable
for compensation of damage. The exceptions to this rule are set in favour of the
aggrieved party if the applicable law does not recognise a direct action, but this
right is recognised according to lex loci delicti, or if the right to a direct action is
not recognised according to any of these two rights but it is possible according
to the law of the place where the insurance contract was entered into.
The application of the law where the traffic accident occurred may be unfa-
vourable for the aggrieved party if it provides for less indemnification that the
indemnification which may be achieved according to the law of their own State.
When there is a bigger difference among the regulations on liability, it usually
refers to the amount of compensation for damage according to the rules of the
State of the accident; for this reason, EU law stipulates that the law which is
more favourable to the aggrieved party may be applied for liability for damages
arising from traffic accidents. Namely, the court needs to determine, either
ex officio or at the request of the aggrieved party, by comparing the decisions
based on the law of the place of the tort with the law of place of damage, which
of these laws is more favourable for the aggrieved party. Inability to determine
the content of the applicable foreign law gives rise to the application of lex fori
or the application of the law which is closest to the unknown, i.e. probably the
application of applicable law.
vehicles of different places of registration took part in the accident; hence, Moroccan law
needed to be applied, i.e. lex loci delicti commissi. Revue Critique, no 416, janvier 1982 p. 691.
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indent 2.The cases when the Hague Convention is not applied are listed as follows:
the liability of the manufacturer, seller and servicer of the vehicle; the liability
of the road owner or any other entity that is responsible for road maintenance
or security of the users; the liability for the actions of another entity except for
the liability of the owner of the vehicle or the ordering party; recourse demands
between the responsible parties; recourse claims and subrogation referring to
the insurer; claims and recourse claims by social security institutions or other
similar institutions and public grant funds for damage caused by a vehicle or
against which these claims are filed, as well as the cases of exclusion from liabi-
lity provided by the law these institutions are part of.10The Convention accepts
the possibility of correction in regular application of conflict of law solutions if it
points to the application of foreign law which is obviously in contravention with
the domestic public policy (Varadi, Bordaš, Knežević, Pavić, 2011: 146). Special
problems in applying conflict of law solutions arise in cases when it points to the
law of the state with a complex system and, even if the choice has been made,
there is a question how to determine applicable law within such state (Živković,
Stanivuković, 2004:311). The state which does not have a unified legal system is
not bound to apply the Convention for the accidents which occur in its territory
involving only the participation of vehicles registered in the territorial units of
that state. According to the Convention, each territorial unit which makes part
of the state which does not have a unified legal system is considered a state for
the purpose of application of Articles 2-11 if it has its own system in the area of
civil non-contractual liability arising from traffic accidents.11
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law rules for non-contractual liability for damage within the EU, as well as to
make it easier to apply the principles of mutual recognition of judgements in civil
and business cases. Apart from the general conflict of law rules, the Regulation
contains several separate solutions concerning certain forms of non-contractual
liability for damage. Considering the fact that some of the EU members are at the
same time the contracting states of the Hague Convention on traffic accidents,
the Rome II Regulation gives an advantage to the solutions from the Hague
Convention in application (Kunda, 2007;1269-1324). We can conclude that the
courts of the member states apply conflict of law standards of the treaties in force
but the courts of the member states which are not parties to such agreements
apply the provisions of the Rome II Regulation.13 Considering its legal force, the
Regulation is above the Hague Convention and international treaties entered
into only between two or more member states, if such international treaties
regulate the relationships contained in the Regulation.14 A contracting state of
this Convention may at the same time be a member to another convention which
contains provisions on non-contractual liability for damage in special area, in
which case the Hague Convention does not have influence on their effect.15 In the
member states which have not ratified the Hague Convention on law applicable
to traffic accidents, the applicable law concerningthe liability for damage cau-
sed by a traffic accident is determined according to the general conflict of law
rule, considering the fact that the Rome II Regulation does not have a separate
conflict of law solution for this kind of liability.
The enactment of the Rome II Regulation has not achieved full unification;thus,
in the member states, the Convention still prevails over the Rome II Regulation.
This refers to international liability of the parties, i.e. the member states, in
Directive 72/166/EEC as of 24th April 1972 regarding the harmonisation of the laws of the
member states in relation to insurance from civil and legal liability regarding the use of
motor vehicles and the obligation of insurance from such liability (Official Journal 1972,
L 103 p. 1). From the practice of European Court: Upon a request for preliminary decision
pursuant to Article 267 UFEU which was sent by the Tribunal/Court of Appeals in Guimaraes,
Portugal, by the decision of 23rd June 2016 in the caseIsabel Maria Pinheiro Vieira, Rodriges
de Andrande, Fausto de Silva Rodriges de Andrade v. Josea Manuela Proenqe Salvadora; Crédito
Agricola Seguros; Companhiade Seguros e Ramos Reaissa; Jorgea Oliviere Pinta, the Portuguese
court applied for the interpretation of Article 3, para.1 of the Directive no.72/166. Within
the dispute between the spouses Andrade and CA Seguros as one party and J. O. Pinta as the
other party, the Court ordered the spouses to pay damages to J. M. P. Salvador because of
the death of his wife in the accident (involving a tractor) which occurred on the farm where
she was working.
13 The states which are not signatories to the Hague Convention are: Bulgaria, Estonia,
Finland, Ireland, Italy, Hungary, Germany, Portugal, Romania, Sweden and Great Britain.
14 Article 28, paragraph 2 of the Regulation
15 Article 15 of the Hague Convention.
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are formulated in such manner that they primarily strengthen the position of the
weaker party. The possibility of expressing the parties’ choice of the applicable
law is expressly excluded by Article 6 which refers to unfair competition and
acts which restrict free market competition as well as in relation to Article 8
which refers to the violation of intellectual property.
Freedom of choice is restricted in the following situations: a) when the circum-
stances of the case at the time when the damage occurred are located in the
state other than the state whose law the parties choose as applicable (Article
14, paragraph 2); b) by their choice the parties may not derogate from acquis
communautaire when all the circumstances of the case, at the time when the
damage occurred, are located in the territory of one or more states in which the
Regulation is in force (Article 14, paragraph 3); c) by the rules of direct applica-
tion pursuant to Article 16 of the Regulation, although in Article 14 there is no
provision of direct reference to this article.
The subjective point of reference, the freedom of choice, represents an option
prescribed by the Regulation of general conflict of law rule for non-contractual
liability for damage. It receives the rank of primary point of reference which,
together with the rest, needs to create “a corresponding measure” of flexibility
in the conflict of law rule.
4. The reform of the Serbian conflict of law for non-contractual liability
for damage
By enacting the Act on Resolving Conflict of Law with the regulations of other
countries,20 the former SFRY embarked on the codification of private internati-
onal law, including the codification of general conflict of law solutions for tort
obligations (Dika, Knežević and Stojanović, 1991:6). For some cases, the Act
provides (unless provided otherwise) that the applicable law for non-contractual
liability for damage is the law of the place where the action was performed or
the law of the place where the consequence occurred, depending on the fact
which of these is more favourable to the damaged party. A single conflict of law
solution includes all the cases of non-contractual liability for damage for which
there is no special national or international conflict of law solution, which is the
relevant to the situation at the time when the event giving rise to the damage occurs are
located in one or more of the Member States, the parties’ choice of the law applicable other
than that of a Member State shall not prejudice the application of provisions of Community
law, where appropriate as implemented in the Member State of the forum, which cannot be
derogated from by agreement”.
20 The Law on Resolving Conflict of Law with the regulations of other countries, ‘’Official
Gazette of the Socialist Federal Republic of Yugoslavia’’ no 43/82, 72/82 and ‘’Official Gazette
of the Federal Republic of Yugoslavia’’ no 49/96 and ‘’Official Gazette of the Republic of
Serbia’’ no 46/06.
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case with the conflict of law solutions of the Hague Convention on applicable
law for traffic accidents. The Convention is applied in Serbia as a member state
on the basis of notification on succession. Due to the international origin of
the Convention, in the domestic doctrine there is a prevailing attitude that the
method of autonomous interpretation needs to be applied to the provisions of
the Convention, which was confirmed by the European Court of Justice.
The opinion of the Supreme Court of Serbia is that the Convention has to be
applied to civil liability arising from a traffic accident, regardless of the kind of
tribunal competent to resolve it. In such case, civil liability is subject to domestic
legislation of the state in whose territory the damage occurred.
Serbia is awaiting the enactment of a new codification of private international
law, considering that the final Draft Code on Private International Law (herei-
nafter: the Draft PIL Code),21 which contains conflict of law solutions harmonised
with the law of the European Union, has already been made.
Thus, Article 165 of the Draft PIL Code stipulates that the parties may choose
applicable law for non-contractual obligations after the harmful event or before
the harmful event, provided that the parties do business activity. The choice
must be manifestly made or undoubtedly arise from the circumstances of the
event. If, at the moment of the occurrence of the harmful event, all the decisive
circumstances are related to the state the law of which was not selected, such
choice does not affect the application of the provisions of the law of the other
state, from which it is not possible to derogate. The Draft PIL Code provides
that the applicable law for non-contractual liability for damage is the law of the
state in which the damage occurred, regardless of the fact in which state the
harmful event occurred or in which state the indirect consequences of that event
occurred, which is a different conflict of law solution in relation to the applicable
Acton Resolving Conflict of Law which is still in force. If the responsible party
and the damaged party have residence in the same state at the moment of the
occurrence of damage, the law of that state is applicable for non-contractual
liability. The new provision provides that, if it is clear from all the circumstan-
ces that the harmful event is obviously in significantly closer connection with
another state, the law of that other state is applied.
Unlike the Rome II Regulation, the Serbian Draft PIL Code on Private Interna-
tional Law standardises the matter of road traffic accidents in Article 172,but
it refers to the application of the Hague Convention in order to determine non-
contractual liability arising from damage in a road traffic accident. Thus, as a
21 TheDraft Code on Private International Law of the Republic of Serbia; Retrieved 16 July
2018 from www.mpravde.rs
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contracting state, it complies with the international legal system and the obli-
gations accepted at the international level.
The domestic court practice applies the Hague Convention, i.e. the conflict of law
rule from Article 3, which refers to the implementation of internal (substantive)
law of the state in which the accident occurred, which is best known by domestic
judges. In Serbian court practice, there are not so many decisions of this kind,
and one of them was rendered in a case of an action taken by a Serbian citizen
who suffered serious body injuries in a car accident which occurred in Iraq. The
accident was caused by a truck with Bulgarian licence plates and a truck with
Serbian licence plates registered with “Dunav” Company. The injured person
was in the vehicle driven by the Serbian driver. In order to effectuate his right
to damages, Lj. Stevanović sued the Association of Insurers of Yugoslavia (at the
time), the “Dunav” Company and the Bulgarian insurance company “Bulstrad”
from Sofia. It was the case of shared liability.
Among other things, it was disputable which law was applicable in this case: the
law of Iraq lex loci delicti or the law of the former SFRY. According to the Hague
Convention, it would be the law of Iraq as lex loci delicti commissi. However,
when the territory where the harmful event happened does not match the state
of the consequence, the localisation of the event is done by the application of
the so-called theory of the state where the law which is more favourable to the
damaged party is applied. The domestic law would be also applicable according
to the principle of private international law which takes the domicile, citizenship
and habitual residence as the point of reference, and the damages are provided
in the proceeding which depends on the point of reference. In this case, the law
of Serbia was applied as the consequences occurred in the SFRY, more precisely
in today’s Serbia.22
5. Conclusion
The solutions of the Hague Convention on the law applicable to road traffic acci-
dents are deeply rooted in the national systems of private international law. In
the procedure of harmonising different attitudes, there wererather complex so-
lutions, whose application required the attention and competence of competent
authorities.Years later, the endeavours of the EU regarding the standardisation
of law in general and the conflict of law rules in particular have had a strong
influence on all national systems of private international law. Cross-border
events resulting in damage raise a series of issues which equally concern all the
22 From the domestic court practice, see: Decision of the Supreme Court Rev-105/06 as of
10th May 2006; Rev-3031/05 as of 13th April 2006; Rev/06 as of 1st February 2006. Retrieved
14.07.2018 from: www.rs/sr-lat/baza-sudske-prakse-suda
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citizens, whether they are from the EU member states or the citizens of other
states. The application of fundamental principles of EU law regarding freedom
of movement of persons, goods and services leads to enacting new rules or
amending the existing rules of the Hague Convention. In accordance with this,
by enacting the Rome II Regulation, the conflict of law standards of international
tort law in the EU area are unified, by the application of the rule of foreseeability
and certainty in determining the applicable law for non-contractual liability for
damage. Reaching a certain degree of foresee ability is the reason to accept the
law of the place of the damage instead of the law of the place where the harmful
event occurred, as a rule which will bring a certain measure of flexibility in
the application of the conflict of law solution. The Rome II Regulation does not
preclude the application of international treaties in which the EU member states
are contracting states. The courts of the member states apply the conflict of law
provisions of the treaties in force in their countries, and the courts of the mem-
ber states which are not the parties to such treaties apply the provisions of the
Rome II Regulation. This is the derogation from the desired European conflict
of law harmonisation in favour of international rules, except for the treaties in
which the contracting states are only the EU members.
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Др Марија Крвавац,
Редовни професор,
Правни факултет Универзитета у Приштини,
са привременим седиштем у Косовској Митровици
Резиме
Oснoвни циљ Хашке кoнвeнциje биo je oлaкшaњe нaкнaдe штeтe пoсрeдствoм
oсигурaвaчa aутooдгoвoрнoсти и пoбoљшaњe пoлoжaja oштeћeних
лицa. Конвенција је резултат компромиса односно настојања аутора да
помире различите приступе и тенденције у колизионом праву вануговорне
одговорности. У складу са тим, решења полазе од примене права на које
указују више тачака везивања истовремено пре опредељења за флексибилно
везивање предмета спора. Примeнa oдрeдaбa кoнвeнциje имa кaрaктeр
унутрaшњeг извoрa те oбухвaтa и мeрoдaвнo прaвo зeмaљa кoje нисучлaницe
ЕУ (бeз oбзирa нa нaчeлo рeципрoцитeтa).
Уредба Рим II полази од традиционалног приступа тако што преузима
решења која су постојала у међународном приватном праву држава чланица,
а узима у обзир решења садржана у правима неких држава нечланица. У
суштини, опште правило Уредбе потврђује примену права земље у којој
се десио штетни догађај, али да би се избегла правна несигурност у
случајевима када су последице штетне радње у различитим државама, ово
правило је конкретизовано кроз примену права државе у којој је наступила
непосредна штета. Жртве друмских саобраћајних несрећа имају могућност
избора повољнијег права уколико су упознате са правом обе државе, чиме
могу заштити своја права и обезбедити повољан правни третман. Иако
повлашћени третман тужиоца није у складу са традиционалним европским
правилима одређивања меродавног права, упућивање на основу отворене
и флексибилне колизионе одредбе би требало да омогући правичност у
сваком конкретном случају. Теорија заступа мишљење да се неуједначеност
колизионих правила комунитарног права и Хашке конвенције у материји
вануговорне одговорности за штету изазвану саобраћајном незгодом може
превазићи изменама и допунама колизионих решења у изворима комунитарног
права, доношењем новог акта секундарног законодавства или одступањем
од обавезне примене конвенције у земљама уговорницама уколико и штетник
и оштећени имају исто уобичајено боравиште.
Кључне речи: штета, саобраћајна незгода, меродавно право, право ЕУ.
156