# kaal:claim:617681-035

**Claim.** Choosing another Member State's courts as the forum can silently strip substantive rights: if the forum state treats an unavailable remedy such as money damages as procedural and refuses to hear the claim, the charter has opted out of substantive law of the state of incorporation that ordinarily could not be waived.

**Type.** failure  **Support.** argued

**Holds when.**

- Member States such as Germany that limit or deny money damages in internal affairs disputes

**Source quote.**

> If so, the corporate charter, by selecting Member State B as a forum opts out of an important part of the substantive corporate law of Member State A, even if Member State A ordinarily does not allow corporate charters to opt out of suits for money damages.

**From.** Christian Kirchner, Richard W. Painter, Wulf A. Kaal, *Regulatory Competition in EU Corporate Law after Inspire Art Unbundling Delaware's Product for Euro* (2004), E.II Adjudicating Corporate Law in Another Member State Forum, page 40

**Cite as.** Christian Kirchner, Richard W. Painter, Wulf A. Kaal, Regulatory Competition in EU Corporate Law after Inspire Art Unbundling Delaware's Product for Euro (2004). SSRN: https://ssrn.com/abstract=617681

**Verify.** sha256 of source PDF `e142130507ea2f5b025fd97b3f762d44ee3a7aaa82b155aab63434b85e8fd834` at https://raw.githubusercontent.com/wulfkaal/Academic-Papers/main/papers/pdf/Kirchner%20et%20al.%20-%202004%20-%20Regulatory%20Competition%20in%20EU%20Corporate%20Law%20after%20Inspire%20Art%20Unbundling%20Delaware%27s%20Product%20for%20Euro.pdf

**Failure mode.** forum-selection-as-covert-opt-out  (family: jurisdictional-conflict)

**Topics.** institutional-design

**Keywords.** forum-unbundling, procedural-substantive-divide, remedies, opt-out

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