Petrologic Capital SA v Banque Cantonale De Geneve & Anor

Petrologic Capital SA v Banque Cantonale De Geneve & Anor

The parties' initial and subsequent agreements, including the bank's general conditions and specific powers of attorney, provided for Swiss law and Geneva jurisdiction for all business relations, including letters of credit. The English law and jurisdiction clause in the letter of credit was not intended to vary this arrangement or to govern the applicant-bank relationship. There was no consensus for English jurisdiction under Article 23 of the Lugano II Convention, and the claimant could not enforce the jurisdiction clause in the credit as a third party under the 1999 Act.

Parties
Claimant: Petrologic Capital SA; First Defendant: Banque Cantonale de Genève; Second Defendant: MIC Petrochemische Vertriebs GmbH
Jurisdiction
England and Wales
Judgment Date
08 March 2012
Procedural Posture
Commercial Court Application / Jurisdictional Challenge (interlocutory)
Outcome
Application allowed; English court has no jurisdiction over the claimant’s claims against the defendant bank.
Legal Topics
Jurisdiction Under Lugano II Convention, Letters of Credit, Contract Variation, Third Party Rights, Choice of Law
Private International Law Commercial Law Banking Law Jurisdiction Under Lugano II Convention Letters of Credit Contract Variation Third Party Rights Choice of Law

Case Brief

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Parties

Petrologic Capital SA

Claimant

Banque Cantonale de Genève

First Defendant

MIC Petrochemische Vertriebs GmbH

Second Defendant

Procedural Posture

Commercial Court Application / Jurisdictional Challenge (interlocutory)

Legal Issues

  1. 1 Whether the English court has jurisdiction over the claim against the bank under Article 23 of the Lugano II Convention
  2. 2 Whether there was an agreement for exclusive English jurisdiction between the claimant and the bank
  3. 3 Whether the law and jurisdiction clause in the letter of credit applies to the applicant-bank relationship

Ratio Decidendi

The parties' initial and subsequent agreements, including the bank's general conditions and specific powers of attorney, provided for Swiss law and Geneva jurisdiction for all business relations, including letters of credit. The English law and jurisdiction clause in the letter of credit was not intended to vary this arrangement or to govern the applicant-bank relationship. There was no consensus for English jurisdiction under Article 23 of the Lugano II Convention, and the claimant could not enforce the jurisdiction clause in the credit as a third party under the 1999 Act.

Court Disposition

Application allowed; English court has no jurisdiction over the claimant’s claims against the defendant bank.

Orders

  • Declaration that the English court does not have jurisdiction over the claimant’s claims against Banque Cantonale de Genève.