Legal Definitions - arrestum jurisdictionis fundandae causa

Arrestum jurisdictionis fundandae causa is a legal procedure in Scots law that allows a Scottish court to establish its authority, or 'jurisdiction,' over a person or entity that would not ordinarily be subject to it. This is achieved by temporarily freezing assets belonging to that foreign individual or company that are located within Scotland. The purpose of this 'arrestment' is to create a basis for the Scottish courts to hear a legal dispute involving the foreign party.

Here are some examples illustrating this legal term:

• Contract Dispute: Imagine a Scottish software development company, "Caledonian Code," has a dispute with a Norwegian client, "Nordic Innovations," over an unpaid invoice for services rendered. Nordic Innovations has no physical office or registered agent in Scotland, but it maintains a bank account with a Scottish bank branch for occasional transactions with other European partners. Caledonian Code could apply for an arrestum jurisdictionis fundandae causa to freeze funds in Nordic Innovations' Scottish bank account. This action would establish the Scottish court's jurisdiction over Nordic Innovations, allowing Caledonian Code to pursue its claim for the unpaid invoice in a Scottish court, even though the client is based in Norway.

• Debt Recovery: Consider a Scottish individual who loaned a substantial sum of money to a Spanish citizen. The Spanish citizen has since defaulted on the loan. While the Spanish citizen resides abroad, they own a holiday apartment in Edinburgh that they rent out to tourists. The Scottish lender could seek an arrestum jurisdictionis fundandae causa against the Spanish citizen's Edinburgh property. By legally freezing this asset, the Scottish courts would gain jurisdiction over the Spanish citizen, enabling the Scottish lender to initiate legal proceedings in Scotland to recover the debt.

• Product Liability Claim: A Scottish consumer suffers an injury due to a faulty household appliance manufactured by a company based in the United States. The American company does not have a direct presence or sales operation in Scotland, but it occasionally ships large consignments of goods through a Scottish port, temporarily storing them in a Scottish warehouse before onward distribution to other European countries. The injured Scottish consumer could apply for an arrestum jurisdictionis fundandae causa to freeze some of the American company's inventory held in that Scottish warehouse. This act would establish the Scottish court's jurisdiction over the American manufacturer, allowing the consumer to bring a product liability claim against them in Scotland.