Etihad Airways PJSC v Flother

Etihad Airways PJSC v Flother

The English court has jurisdiction over disputes relating to the Comfort Letter under the Facility Agreement's jurisdiction clause, as both documents are part of a closely linked support package governed by English law and jurisdiction. Article 25 of Brussels Recast applies to asymmetric jurisdiction clauses, and Article 31(2) requires the German court to stay proceedings, giving priority to the English court. The dispute arises in connection with the legal relationship in which the jurisdiction agreement was concluded, and Air Berlin would not be surprised by referral to the English court.

Parties
Claimant/respondent: Etihad Airways PJSC; Defendant/applicant: Prof. Dr. Lucas Flöther
Jurisdiction
England and Wales
Judgment Date
18 November 2019
Procedural Posture
Commercial Court Application / Ruling on Application for Declaratory Relief and Stay of Proceedings
Outcome
Application dismissed
Legal Topics
Jurisdiction Clauses, Exclusive Jurisdiction, Asymmetric Jurisdiction Clauses, Lis Pendens, Declaratory Relief, Stay of Proceedings, Interpretation of Brussels Recast Regulation, Comfort Letters, Financial Support Agreements
Private International Law Contract Law EU Law Jurisdiction Clauses Exclusive Jurisdiction Asymmetric Jurisdiction Clauses Lis Pendens Declaratory Relief +4 more

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Parties

Etihad Airways PJSC

Claimant/respondent

Prof. Dr. Lucas Flöther

Defendant/applicant

Procedural Posture

Commercial Court Application / Ruling on Application for Declaratory Relief and Stay of Proceedings

Legal Issues

  1. 1 Does the English court have jurisdiction over claims relating to the Comfort Letter under the Facility Agreement's jurisdiction clause?
  2. 2 Does Article 25 of Brussels Recast apply to asymmetric jurisdiction clauses?
  3. 3 Should the English proceedings be stayed in favour of the German court under Article 31(2) of Brussels Recast?

Ratio Decidendi

The English court has jurisdiction over disputes relating to the Comfort Letter under the Facility Agreement's jurisdiction clause, as both documents are part of a closely linked support package governed by English law and jurisdiction. Article 25 of Brussels Recast applies to asymmetric jurisdiction clauses, and Article 31(2) requires the German court to stay proceedings, giving priority to the English court. The dispute arises in connection with the legal relationship in which the jurisdiction agreement was concluded, and Air Berlin would not be surprised by referral to the English court.

Court Disposition

Application dismissed

Orders

  • The application by the Defendant for declaratory relief and a stay of proceedings is dismissed.
  • The English court retains jurisdiction over the claims.