Bellmare Holdings Ltd v Wells

Bellmare Holdings Ltd v Wells

The originating event for the purposes of Article 5(3) of the Lugano Convention in a claim for fraudulent or negligent misstatement is the making of the statement by the defendant, not the drafting of the loan note format by a third party in England. The defendant's actions occurred in Switzerland, and jurisdiction cannot be founded on the actions of Mr. Pym in England. Therefore, the English court has no jurisdiction over the defendant.

Parties
Claimant: Bellmare Holdings Limited; Defendant: David Wells
Jurisdiction
England and Wales
Judgment Date
08 October 2019
Procedural Posture
Civil Appeal / Judgment on Appeal Against Jurisdiction Decision
Outcome
Appeal allowed; declaration that the court has no jurisdiction; claim form set aside.
Legal Topics
Jurisdiction, Lugano Convention, Fraudulent Misstatement, Negligent Misstatement
Private International Law Civil Procedure Jurisdiction Lugano Convention Fraudulent Misstatement Negligent Misstatement

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Parties

Bellmare Holdings Limited

Claimant

David Wells

Defendant

Procedural Posture

Civil Appeal / Judgment on Appeal Against Jurisdiction Decision

Legal Issues

  1. 1 Whether the English court has jurisdiction under Article 5(3) of the Lugano Convention over a Swiss-domiciled defendant for alleged fraudulent/negligent misstatement
  2. 2 Whether the originating event for jurisdiction purposes is the drafting of loan note in England or the communication of misstatement in Switzerland
  3. 3 Whether actions of a third party in England can found jurisdiction over the defendant

Ratio Decidendi

The originating event for the purposes of Article 5(3) of the Lugano Convention in a claim for fraudulent or negligent misstatement is the making of the statement by the defendant, not the drafting of the loan note format by a third party in England. The defendant's actions occurred in Switzerland, and jurisdiction cannot be founded on the actions of Mr. Pym in England. Therefore, the English court has no jurisdiction over the defendant.

Court Disposition

Appeal allowed; declaration that the court has no jurisdiction; claim form set aside.

Orders

  • Declaration that the court has no jurisdiction over the defendant.
  • Order setting aside the claim form.