LUGANO CONVENTION - Curt Case, initiated n 21 December 2009 by Belgium against Switzerland Belgium vs. Switzerland cncerning the interpretatin and applicatin f the Lugan Cnventin n jurisdictin and the enfrcement f judgments in civil and cmmercial matters Jan DUBAERE Racine & Vergels jdubaere@racine.eu www.racinevergels.eu +32 2 412 01 97
21 December 2009: Belgium started the abvementined curt case and initiated prceedings against Switzerland (Internatinal Curt f Justice) Subject f dispute: The interpretatin and applicatin f the Lugan Cnventin n jurisdictin and enfrcement f judgments in civil and cmmercial matters Lugan Cnventin: place f jurisdictin - a case law example 2
Origin f the dispute Parallel judicial prceedings in Belgium and Switzerland Cncerning the alleged miscnduct f the Swiss sharehlder in Sabena Swiss sharehlders SAirgrup & SAirlLines (in bankruptcy) Belgian sharehlders Sabena (in bankruptcy) Cntractual exclusive jurisdictin f the Brussels Curts Lugan Cnventin: place f jurisdictin - a case law example 3
Belgian sharehlders: Brussels curts Claim based n cntractual liability and trt Jurisdictin f the Belgian curts: Art. 17 and 5 (3) f the Lugan Cnventin If the parties [ ] have agreed that a curt r the curts f a State bund by this Cnventin are t have jurisdictin t settle any disputes which have arisen r which may arise in cnnectin with a particular legal relatinship, that curt r thse curts shall have jurisdictin. - art. 17 Lugan Cnventin (current art. 23) A persn dmiciled in a State bund by this Cnventin may, in anther State bund by this Cnventin, be sued [ ] in matters relating t trt, delict r quasi-delict, in the curts fr the place where the harmful event ccurred r may ccur. art. 5 (3) Lugan Cnventin Lugan Cnventin: place f jurisdictin - a case law example 4
Swiss sharehlders: Zurich curts Swiss sharehlders: Debt-restructuring mratrium and eventually bankruptcy Belgian sharehlders: declaratin f debt claims The existence and amunt f the debt claim depended n the prceedings befre the Brussels curt with regard t afrementined cntractual liability and trt Lugan Cnventin: place f jurisdictin - a case law example 5
Swiss curt prceedings Belgian sharehlders ask t stay the Swiss prcedure (art. 21 (current art. 27) f the Lugan Cnventin): Where prceedings invlving the same cause f actin and between the same parties are brught in the curts f diffgerent States bund by this Cnventin, any curt ther than the curt first seised shall f its wn mtin stay its prceedings until such time as the jurisdictin f the curt first seised is established. Where the jurisdictin f the curt first seised is established, any curt ther than the curt first seised shall decline jurisdictin in favur f that curt. art. 21 Lugan Cnventin (current art. 27) Lugan Cnventin: place f jurisdictin - a case law example 6
Swiss curt prceedings; first argument The Swiss Federal curt reasns that the Belgian decisin culd nt be recgnised fr the purpses f the Swiss debt-restructuring prceedings: The Cnventin shall nt apply t: [ ] (b) bankruptcy, prceedings relating t the winding-up f inslvent cmpanies r ther legal persns, judicial arrangements, cmpsitins and analgus prceedings. - art. 1 Criticism: nly the nature f a judgment whse recgnitin is sught is decisive, rather than the purpse fr which the judgment is being used. The nature f the Belgian decisin is clearly civil r cmmercial and thus the Swiss curts are bliged t recgnize the decisin under the Lugan Cnventin. Lugan Cnventin: place f jurisdictin - a case law example 7
Swiss curt prceedings; secnd argument The Swiss Federal curt reasns Swiss curts have exclusive jurisdictin ver any dispute cncerning the schedule f claims and the inclusin f any claims f the Belgian sharehlders, as bankruptcy is excluded frm the scpe f the Lugan Cnventin. Accrdingly, there is nt a case f parallel prceedings in tw cntracting States. Criticism: The answer will depend n whether the debt-scheduling prceedings and the status f the Belghian sharehlders as creditrs are t be cnsidered as issues f bankruptcy and thereby excluded frm the scpe f the Lugan Cnventin. Nte that the case law regarding the Brussels I Regulatin can prvide with surces as the ne is sister t the ther. Lugan Cnventin: place f jurisdictin - a case law example 8
Swiss Federal Curt Decisin f 30 September 2008: The Swiss Federal Curt des nt stay the prceedings (in view f the Belgian judgment). Belgium takes the case t the ICJ and, asserting that this decisin implies: a refusal t recgnize the future Belgian decisin; a refusal t apply the Lugan Cnventin. Prceedings: 21 December 2009: Begium initiates prceedings 23 Nvember 2010: Belgian Memrial 18 February 2011: Swiss preliminary bjectins Lugan Cnventin: place f jurisdictin - a case law example 9
Outcme? Kingdm f Belgium requests the discntinuance f the prceedings based n Switzerland s statements in its preliminary bjectins: the Swiss Cnfederatin indicated that the reference by the Swiss Federal Supreme Curt in its 30 September 2008 judgment t the nn-recgnizability f a future Belgian judgment did nt have the frce f res judicata and did nt bind either the lwer cantnal curts r the Federal Supreme Curt itself, and that there was therefre nthing t prevent a Belgian judgment, nce handed dwn, frm being recgnized in Switzerland in accrdance with the applicable treaty prvisins. Accrdingly, Switzerland cnfirms in its preliminary bjectins the general principles f the Lugan Cnventin. Final utcme: n 5 April 2011, the case was (unfrtunately) remved frm the list. Lugan Cnventin: place f jurisdictin - a case law example 10