The European Union & Anor v The Syrian Arab Republic

The European Union & Anor v The Syrian Arab Republic

The English court has jurisdiction over Syria due to the express submission and waiver of immunity in the loan agreements and the commercial nature of the transactions. Service was validly effected and, where necessary, alternative methods were properly authorised. The European Union, having paid under the guarantees, is subrogated to the Bank's rights and entitled to recover the debt from Syria. Syria has no real prospect of defending the claim, and neither sanctions nor alleged breaches by the Bank provide a viable defence. Summary judgment is therefore granted in favour of the European Union.

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 Debt Recovery (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
State Immunity, Jurisdiction, Subrogation, Loan Agreements, Summary Judgment, Service of Process on States, Sanctions, Contractual Interpretation
Commercial Law International Law Banking and Finance Law Conflict of Laws State Immunity Jurisdiction Subrogation Loan Agreements +4 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 Debt Recovery (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 on Syria was valid and sufficient
  3. 3 Whether the European Union is subrogated to the rights of the European Investment Bank under the loan agreements

Ratio Decidendi

The English court has jurisdiction over Syria due to the express submission and waiver of immunity in the loan agreements and the commercial nature of the transactions. Service was validly effected and, where necessary, alternative methods were properly authorised. The European Union, having paid under the guarantees, is subrogated to the Bank's rights and entitled to recover the debt from Syria. Syria has no real prospect of defending the claim, and neither sanctions nor alleged breaches by the Bank provide a viable defence. Summary judgment is therefore granted in favour of the European Union.

Court Disposition

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

Orders

  • Permission granted to apply for summary judgment in the absence of acknowledgment of service or defence.
  • Summary judgment entered for the European Union against Syria in the sum of €190,535,079.44.