Rawlinson & Hunter Trustees SA v Kaupthing Bank HF & Ors [2011] EWHC 566 (Comm) (16 March 2011)

Rawlinson & Hunter Trustees SA v Kaupthing Bank HF & Ors [2011] EWHC 566 (Comm) (16 March 2011)

At the time the English proceedings were commenced, there was neither a Directive-compliant reorganisation measure nor winding-up in Iceland, so the English court retained jurisdiction under the Lugano Convention; the subsequent opening of winding-up proceedings in Iceland did not retrospectively affect the pending English lawsuits, and there was no abuse of process in the Claimants pursuing their claims in England.

Citation
[2011] EWHC 566 (Comm)
Parties
Claimant/respondent: Rawlinson & Hunter Trustees SA (in its capacity as the trustee of the Tchenguiz Discretionary Trust); Claimants/respondents: Rawlinson & Hunter Trustees SA (in its capacity as the trustee of the Tchenguiz Family Trust) and others; Defendant/applicant: Kaupthing Bank HF; Second Defendant: Oscatello Investments Ltd (BVI)
Jurisdiction
England and Wales
Judgment Date
16 March 2011
Procedural Posture
Commercial Court Proceedings (applications to Stay Proceedings for Want of Jurisdiction) / Judgment on Application to Stay Proceedings
Outcome
Defendant's application dismissed
Legal Topics
Jurisdiction Under Lugano Convention, Recognition of Foreign Insolvency Proceedings, Effect of Insolvency on Pending Lawsuits, Exclusive Jurisdiction Clauses, Abuse of Process
Insolvency Law Private International Law Banking Law Jurisdiction Under Lugano Convention Recognition of Foreign Insolvency Proceedings Effect of Insolvency on Pending Lawsuits Exclusive Jurisdiction Clauses Abuse of Process

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Parties

Rawlinson & Hunter Trustees SA (in its capacity as the trustee of the Tchenguiz Discretionary Trust)

Claimant/respondent

Rawlinson & Hunter Trustees SA (in its capacity as the trustee of the Tchenguiz Family Trust) and others

Claimants/respondents

Kaupthing Bank HF

Defendant/applicant

Oscatello Investments Ltd (BVI)

Second Defendant

Procedural Posture

Commercial Court Proceedings (applications to Stay Proceedings for Want of Jurisdiction) / Judgment on Application to Stay Proceedings

Legal Issues

  1. 1 Whether English proceedings should be stayed due to Icelandic insolvency proceedings against Kaupthing Bank HF
  2. 2 Whether there was a Directive-compliant reorganisation measure or winding-up in Iceland at the time English proceedings commenced
  3. 3 Whether English proceedings are an abuse of process given proofs of debt filed in Icelandic winding-up

Ratio Decidendi

At the time the English proceedings were commenced, there was neither a Directive-compliant reorganisation measure nor winding-up in Iceland, so the English court retained jurisdiction under the Lugano Convention; the subsequent opening of winding-up proceedings in Iceland did not retrospectively affect the pending English lawsuits, and there was no abuse of process in the Claimants pursuing their claims in England.

Court Disposition

Defendant's application dismissed

Orders

  • No stay of English proceedings
  • English court retains jurisdiction under the Lugano Convention