Lehman Brothers Bankhaus AG I. Ins v CMA CGM

Lehman Brothers Bankhaus AG I. Ins v CMA CGM

The English proceedings are closely connected to the French proceedings, and a stay is expedient to avoid the risk of irreconcilable judgments. The exclusive jurisdiction clause does not preclude a stay, as the French proceedings concern mandatory insolvency protections unavailable in England. The substantive determination of the English claim should await the outcome of the French courts on the relevant French law proposition.

Parties
Claimant: Lehman Brothers Bankhaus AG I. INS; Defendant: CMA CGM
Jurisdiction
England and Wales
Judgment Date
06 February 2013
Procedural Posture
Commercial Claim / Ruling on Application for Stay of Proceedings
Outcome
Stay granted
Legal Topics
Exclusive Jurisdiction Clauses, Stay of Proceedings, Lis Pendens, Related Actions, EC Regulation 44/2001, French Insolvency Law
Commercial Law Private International Law Civil Procedure Exclusive Jurisdiction Clauses Stay of Proceedings Lis Pendens Related Actions EC Regulation 44/2001 +1 more

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Parties

Lehman Brothers Bankhaus AG I. INS

Claimant

CMA CGM

Defendant

Procedural Posture

Commercial Claim / Ruling on Application for Stay of Proceedings

Legal Issues

  1. 1 Whether the English proceedings should be stayed pending the outcome of French proceedings
  2. 2 Whether the French proceedings constitute 'related actions' under Article 28 of EC Regulation 44/2001
  3. 3 Whether the exclusive jurisdiction clause precludes a stay under Article 28

Ratio Decidendi

The English proceedings are closely connected to the French proceedings, and a stay is expedient to avoid the risk of irreconcilable judgments. The exclusive jurisdiction clause does not preclude a stay, as the French proceedings concern mandatory insolvency protections unavailable in England. The substantive determination of the English claim should await the outcome of the French courts on the relevant French law proposition.

Court Disposition

Stay granted

Orders

  • English proceedings stayed pending the final outcome of the French proceedings
  • Second and third alternative remedies not considered