Black Diamond Offshore Ltd & Ors v Fomento De Construcciones y Contratas SA [2015] EWHC 1035 (Ch) (09 March 2015)

Black Diamond Offshore Ltd & Ors v Fomento De Construcciones y Contratas SA [2015] EWHC 1035 (Ch) (09 March 2015)

The dispute as to whether there is an Event of Default arises under the Notes, which contain an exclusive English jurisdiction clause. There is no competing jurisdiction clause engaged, and the issues under the Syndicated Financing Agreement and the Spanish homologation proceedings are distinct. The Creditors have a...

Source-derived case information.

Citation
[2015] EWHC 1035 (Ch)
Parties
Applicant/defendant: Black Diamond Offshore Limited; Applicant/defendant: Double Black Diamond Offshore Limited; Applicant/defendant: North Light European Fundamental Credit Fund; Respondent/claimant: Fomento de Construcciones y Contratas S. A.
Jurisdiction
England and Wales
Judgment Date
09 March 2015
Procedural Posture
Part 8 Claim (declaratory Relief) / Application for Declaration as to Jurisdiction and for Case Management Stay
Outcome
Application for declaration that the court has no jurisdiction refused; application for case management stay refused.
Legal Topics
Jurisdiction Clauses, Case Management Stay, Declaratory Relief, Exclusive Jurisdiction, Cross Border Insolvency
Civil Procedure Commercial Law Conflict of Laws Jurisdiction Clauses Case Management Stay Declaratory Relief Exclusive Jurisdiction Cross Border Insolvency

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Parties

Black Diamond Offshore Limited

Applicant/defendant

Double Black Diamond Offshore Limited

Applicant/defendant

North Light European Fundamental Credit Fund

Applicant/defendant

Fomento de Construcciones y Contratas S. A.

Respondent/claimant

Procedural Posture

Part 8 Claim (declaratory Relief) / Application for Declaration as to Jurisdiction and for Case Management Stay

Legal Issues

  1. 1 Whether the English court has jurisdiction under the exclusive jurisdiction clause in the Notes
  2. 2 Whether a case management stay should be granted pending Spanish homologation proceedings

Ratio Decidendi

The dispute as to whether there is an Event of Default arises under the Notes, which contain an exclusive English jurisdiction clause. There is no competing jurisdiction clause engaged, and the issues under the Syndicated Financing Agreement and the Spanish homologation proceedings are distinct. The Creditors have a real interest in the declaratory relief sought. There is no strong or compelling reason to grant a case management stay, and the exclusive jurisdiction clause should be enforced.

Court Disposition

Application for declaration that the court has no jurisdiction refused; application for case management stay refused.

Orders

  • The English court has jurisdiction under the exclusive jurisdiction clause in the Notes.
  • No case management stay is granted.