Rawlinson & Hunter Trustees SA v Kaupthing Bank HF & Ors

Rawlinson & Hunter Trustees SA v Kaupthing Bank HF & Ors

At the time the English proceedings were commenced, there was neither a Directive-compliant reorganisation measure nor winding-up in Iceland, as required by the relevant EU Directive and UK Regulations. The subsequent Icelandic court order did not retrospectively create such a measure. Therefore, the English court retains jurisdiction under the Lugano Convention, and the Defendant's application for a stay is dismissed.

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 Civil Claim / Application to Stay Proceedings for Want of Jurisdiction
Outcome
Defendant's application dismissed
Legal Topics
Jurisdiction Under Lugano Convention, Recognition of Foreign Insolvency Proceedings, Reorganisation Measures Vs Winding Up, Abuse of Process, Effect of Exclusive Jurisdiction Clauses
Insolvency Law Private International Law Banking Law Jurisdiction Under Lugano Convention Recognition of Foreign Insolvency Proceedings Reorganisation Measures Vs Winding Up Abuse of Process Effect of Exclusive Jurisdiction Clauses

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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 Civil Claim / Application to Stay Proceedings for Want of Jurisdiction

Legal Issues

  1. 1 Whether Icelandic insolvency measures constituted a Directive-compliant reorganisation or winding-up at the time English proceedings commenced
  2. 2 Whether English proceedings should be stayed for want of jurisdiction under the Lugano Convention and relevant EU/EEA insolvency law
  3. 3 Whether continuation of English proceedings is an abuse of process

Ratio Decidendi

At the time the English proceedings were commenced, there was neither a Directive-compliant reorganisation measure nor winding-up in Iceland, as required by the relevant EU Directive and UK Regulations. The subsequent Icelandic court order did not retrospectively create such a measure. Therefore, the English court retains jurisdiction under the Lugano Convention, and the Defendant's application for a stay is dismissed.

Court Disposition

Defendant's application dismissed

Orders

  • The application to stay the English proceedings for want of jurisdiction is dismissed.