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Australia
Leading Case
proper law closest connectionexclusive jurisdiction clause staystatutory override
Akai Pty Ltd v The People's Insurance Co Ltd
[1996] HCA 39; (1996) 188 CLR 418; (1997) 71 ALJR 156; (1997) 141 ALR 374
Key Principle
A foreign choice-of-law/exclusive jurisdiction clause cannot displace a mandatory Australian statute (here s 54 Insurance Contracts Act); the proper law is determined by the system of law with the closest and most real connection, and a foreign jurisdiction clause does not oust local jurisdiction but founds a discretion to stay.
Area of Law
Civil Procedure, Conflicts & Arbitration
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