The European Union & Anor v The Syrian Arab Republic [2018] EWHC 1712 (Comm) (29 June 2018)

The European Union & Anor v The Syrian Arab Republic [2018] EWHC 1712 (Comm) (29 June 2018)

The English court has jurisdiction over Syria due to express submission and waiver of immunity in the loan agreements and the commercial nature of the transactions. Service was validly effected by alternative means. The EU, having paid under guarantees, is subrogated to the EIB's rights and entitled to recover the sums from Syria. No real prospect of a defence exists, including arguments based on sanctions or non-disbursement. Summary judgment is granted for the EU.

Citation
[2018] EWHC 1712 (Comm)
Parties
Claimant/applicant: The European Union (represented by the European Investment Bank); Claimant/applicant: The European Investment Bank; Defendant/respondent: The Syrian Arab Republic
Jurisdiction
England and Wales
Judgment Date
29 June 2018
Procedural Posture
Commercial Court Claim for Recovery of Sums Paid Under Loan Guarantees (summary Judgment Application) / Judgment on Applications for Permission to Apply for Summary Judgment and for Summary Judgment
Outcome
Summary judgment granted for the European Union against the Syrian Arab Republic.
Legal Topics
Loan Agreements, Guarantees, Subrogation, Sovereign Immunity, Jurisdiction, Service of Process, Summary Judgment
Commercial Law Banking and Finance Conflict of Laws State Immunity Loan Agreements Guarantees Subrogation Sovereign Immunity +3 more

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Parties

The European Union (represented by the European Investment Bank)

Claimant/applicant

The European Investment Bank

Claimant/applicant

The Syrian Arab Republic

Defendant/respondent

Procedural Posture

Commercial Court Claim for Recovery of Sums Paid Under Loan Guarantees (summary Judgment Application) / Judgment on Applications for Permission to Apply for Summary Judgment and for Summary Judgment

Legal Issues

  1. 1 Whether the English court has jurisdiction over the Syrian Arab Republic under the loan agreements and State Immunity Act 1978
  2. 2 Whether service of proceedings and application documents was validly effected on the Syrian Arab Republic
  3. 3 Whether the European Union is entitled to summary judgment as subrogee for sums paid under guarantees to the European Investment Bank

Ratio Decidendi

The English court has jurisdiction over Syria due to express submission and waiver of immunity in the loan agreements and the commercial nature of the transactions. Service was validly effected by alternative means. The EU, having paid under guarantees, is subrogated to the EIB's rights and entitled to recover the sums from Syria. No real prospect of a defence exists, including arguments based on sanctions or non-disbursement. Summary judgment is granted for the EU.

Court Disposition

Summary judgment granted for the European Union against the Syrian Arab Republic.

Orders

  • Permission granted to apply for summary judgment under CPR 24.4(1).
  • Summary judgment entered for the European Union for €189,866,309.83 plus further contractual interest until payment.