Common use of Process Agent Letter Clause in Contracts

Process Agent Letter. Unless the lessee is domiciled in the jurisdiction (or otherwise subject to the jurisdiction of its courts) chosen as a venue for resolution of disputes (such as an English airline where the courts of England are chosen in the lease as having jurisdiction over any disputes that arise under the lease), a letter from an agent for the lessee agreeing to act as its agent for service of process within such jurisdiction should be obtained. 174 Article 6 of the Chicago Convention requires permission or authorization of a state for scheduled international service over or into its territory. Accordingly, the majority of international scheduled fights are regulated by international bilateral or multilateral air transport agreements. Vide ▇▇▇▇▇▇ ▇ ▇, International Aircraft Financing, Volume 1: General Principles, IATA, 2005, at 367. 175 Study on Aircraft Leasing, Air Transport Committee, 156th Session of the Council, ICAO, 1999, 4.3-4.14. 176 This need not necessarily be from an independent law firm retained by the lessee but may, if the lessor agrees, be from in-house legal counsel in the employment of the lessee. The lessee should likewise require a similar letter from the lessor. Without such a letter, a party seeking to sue the other may be subject to cumbersome procedures to serve a party outside the relevant court’s jurisdiction. Even with such a letter, without substantial assets in such jurisdiction, the value of any favorable judgment will depend on the ability of the victorious plaintiff to enforce such judgment in a jurisdiction where the other party has indeed substantial assets.

Appears in 2 contracts

Sources: Aircraft Operating Lease, Aircraft Operating Lease