ABSTRACT

This is not as wide an extension of jurisdiction as it may appear. Before the courts of the place where the branch is situated can assume jurisdiction, it has to be shown that there is a fixed permanent place of business, not simply a stall at a market fair or the presence of a sales representative82 or even an independent commercial agency if it is not under the direction and control of the ‘parent’ company. As regards legal personality, a branch will not normally have separate legal personality, but an agency or establishment may. The matter has been examined by the European Court of Justice in four important cases, each examining a facet of the problem.83 The case law indicates that the evidence will need to establish that the entity: (a) has a fixed permanent place of business;84

(b) is given a degree of direction and control by the parent company;85

(c) enjoys a certain autonomy; (d) acts on behalf of and is capable of binding the parent.