CRF I Limited v Banco Nacional De Cuba & Anor.

CRF I Limited v Banco Nacional De Cuba & Anor.

BNC validly consented to the assignment of the debts under the Agreements to CRF I Limited, as it had capacity and authority under Cuban law to do so; the formalities required for consent were satisfied. BNC did not have capacity to consent to the assignment of the Cuban State guarantee. The English court has jurisdiction over the debt claims, and BNC is not immune under the State Immunity Act 1978. The assignments of the debts are valid and effective; the assignment of the guarantee is not. Ratification and apparent authority do not assist in relation to the guarantee. Consent was not unreasonably withheld.

Parties
Claimant: CRF I Limited; Defendant: Banco Nacional de Cuba; Defendant: The Republic of Cuba
Jurisdiction
England and Wales
Judgment Date
04 April 2023
Procedural Posture
Commercial Court Claim (sovereign Debt) / Jurisdiction Challenge (cpr Part 11) and Approved Judgment
Outcome
Claim allowed in part; jurisdiction upheld for debt claims, not for guarantee claim.
Legal Topics
Sovereign Debt Assignment, Jurisdiction of English Courts, State Immunity Act 1978, Authority and Capacity Under Foreign Law, Assignment Formalities, Ratification, Apparent Authority
Commercial Law Banking and Finance Law Conflict of Laws Sovereign Immunity Sovereign Debt Assignment Jurisdiction of English Courts State Immunity Act 1978 Authority and Capacity Under Foreign Law +3 more

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Parties

CRF I Limited

Claimant

Banco Nacional de Cuba

Defendant

The Republic of Cuba

Defendant

Procedural Posture

Commercial Court Claim (sovereign Debt) / Jurisdiction Challenge (cpr Part 11) and Approved Judgment

Legal Issues

  1. 1 Whether Banco Nacional de Cuba (BNC) and/or the Republic of Cuba validly consented to the assignment of sovereign debt to CRF I Limited
  2. 2 Whether BNC had capacity and authority under Cuban law to consent to the assignment of the debts and guarantee
  3. 3 Whether the English court has jurisdiction over the claim under the relevant agreements and the State Immunity Act 1978

Ratio Decidendi

BNC validly consented to the assignment of the debts under the Agreements to CRF I Limited, as it had capacity and authority under Cuban law to do so; the formalities required for consent were satisfied. BNC did not have capacity to consent to the assignment of the Cuban State guarantee. The English court has jurisdiction over the debt claims, and BNC is not immune under the State Immunity Act 1978. The assignments of the debts are valid and effective; the assignment of the guarantee is not. Ratification and apparent authority do not assist in relation to the guarantee. Consent was not unreasonably withheld.

Court Disposition

Claim allowed in part; jurisdiction upheld for debt claims, not for guarantee claim.

Orders

  • Declaration that BNC validly consented to the assignment of the debts under the Agreements to CRF I Limited
  • Declaration that the debts under the Agreements were validly assigned to CRF I Limited