Durbeck GmbH v Den Norske Bank ASA [2003] EWCA Civ 147 (03 February 2003)

Durbeck GmbH v Den Norske Bank ASA [2003] EWCA Civ 147 (03 February 2003)

The dispute arose out of the activities of the defendants' London branch, as the loan was negotiated and administered in London and the decision to arrest the vessel was made there. Article 5(5) of the Lugano Convention does not impose a geographical limitation requiring the harmful event to occur in the same state...

Source-derived case information.

Citation
[2003] EWCA Civ 147
Parties
Appellant/claimant: Durbeck GmbH; Respondent/defendant: Den Norske Bank ASA
Jurisdiction
England and Wales
Judgment Date
03 February 2003
Procedural Posture
Civil Appeal / Appeal From High Court (commercial Court Division) to Court of Appeal
Outcome
Appeal allowed with costs; action stayed in favour of Panama; leave to appeal to the House of Lords granted.
Legal Topics
Jurisdiction Under Lugano Convention, Forum Non Conveniens, Tortious Interference With Contract, Branch Operations and Jurisdiction
Private International Law Commercial Law Jurisdiction Under Lugano Convention Forum Non Conveniens Tortious Interference With Contract Branch Operations and Jurisdiction

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Summary, issues, holding and outcome

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Parties

Durbeck GmbH

Appellant/claimant

Den Norske Bank ASA

Respondent/defendant

Procedural Posture

Civil Appeal / Appeal From High Court (commercial Court Division) to Court of Appeal

Legal Issues

  1. 1 Whether Article 5(5) of the Lugano Convention confers jurisdiction on the English court over a tort claim arising from the operations of a branch
  2. 2 Whether, if jurisdiction exists under Article 5(5), the English court may stay proceedings on forum non conveniens grounds

Ratio Decidendi

The dispute arose out of the activities of the defendants' London branch, as the loan was negotiated and administered in London and the decision to arrest the vessel was made there. Article 5(5) of the Lugano Convention does not impose a geographical limitation requiring the harmful event to occur in the same state as the branch. Therefore, the English court has jurisdiction. However, the court has jurisdiction to stay the proceedings in favour of Panama as the more appropriate forum.

Court Disposition

Appeal allowed with costs; action stayed in favour of Panama; leave to appeal to the House of Lords granted.

Orders

  • The judge's order is replaced with an order staying the action.
  • Costs awarded to the appellant.