Macquarie Bank Limited v Banque Cantonale Vaudoise

Macquarie Bank Limited v Banque Cantonale Vaudoise

England and Wales is clearly the most appropriate forum for the determination of the dispute because the SBLCs are governed by English law, the Swiss proceedings are indefinitely stayed and do not give effect to the substantive characteristics of the SBLCs under English law, and only the English court can enforce the parties’ substantive rights without procedural circumvention. The links to Switzerland do not outweigh these factors.

Parties
Claimant/respondent: Macquarie Bank Limited; Defendant/applicant: Banque Cantonale Vaudoise
Jurisdiction
England and Wales
Judgment Date
11 October 2024
Procedural Posture
Commercial Court Claim (jurisdiction Challenge) / Judgment on Defendant's Application Challenging Jurisdiction
Outcome
Defendant’s jurisdiction challenge dismissed; English court will proceed with the claim.
Legal Topics
Jurisdiction Challenge, Forum Conveniens, Letters of Credit, Governing Law, Stay of Proceedings
Private International Law Banking Law Commercial Law Jurisdiction Challenge Forum Conveniens Letters of Credit Governing Law Stay of Proceedings

Case Brief

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Parties

Macquarie Bank Limited

Claimant/respondent

Banque Cantonale Vaudoise

Defendant/applicant

Procedural Posture

Commercial Court Claim (jurisdiction Challenge) / Judgment on Defendant's Application Challenging Jurisdiction

Legal Issues

  1. 1 Whether England and Wales is clearly the most appropriate forum for the dispute under the forum conveniens doctrine
  2. 2 Whether the Swiss proceedings justify a stay or dismissal of the English proceedings
  3. 3 Effect of parties’ choice of English law as governing law for the SBLCs

Ratio Decidendi

England and Wales is clearly the most appropriate forum for the determination of the dispute because the SBLCs are governed by English law, the Swiss proceedings are indefinitely stayed and do not give effect to the substantive characteristics of the SBLCs under English law, and only the English court can enforce the parties’ substantive rights without procedural circumvention. The links to Switzerland do not outweigh these factors.

Court Disposition

Defendant’s jurisdiction challenge dismissed; English court will proceed with the claim.

Orders

  • Jurisdiction challenge dismissed
  • MBL to use best endeavours to discontinue Swiss proceedings if required