Black Diamond Offshore Ltd & Ors v Fomento De Construcciones y Contratas SA

Black Diamond Offshore Ltd & Ors v Fomento De Construcciones y Contratas SA

The English court has jurisdiction under the exclusive jurisdiction clause in the Notes, as the Event of Default issue arises directly from the Notes and not from the Syndicated Financing Agreement. There is no competing jurisdiction clause applicable to the Homologation Proceedings. There is no strong or compelling reason to grant a case management stay, and the balance of convenience favours allowing the Part 8 Claim to proceed in England.

Parties
Applicant/defendant: Black Diamond Offshore Limited; Applicant/defendant: Double Black Diamond Offshore Limited; Applicant/defendant: North Light European Fundamental Credit Fund; Respondent/claimant: Fomento de Construcciones y Contratas S. A.
Jurisdiction
England and Wales
Judgment Date
09 March 2015
Procedural Posture
Part 8 Claim / Ruling on Jurisdiction and Case Management Stay
Outcome
Application for declaration that the court has no jurisdiction dismissed; application for case management stay refused.
Legal Topics
Exclusive Jurisdiction Clauses, Case Management Stay, Debt Restructuring, Event of Default
Commercial Law Contract Law Jurisdiction Exclusive Jurisdiction Clauses Case Management Stay Debt Restructuring Event of Default

Case Brief

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Parties

Black Diamond Offshore Limited

Applicant/defendant

Double Black Diamond Offshore Limited

Applicant/defendant

North Light European Fundamental Credit Fund

Applicant/defendant

Fomento de Construcciones y Contratas S. A.

Respondent/claimant

Procedural Posture

Part 8 Claim / Ruling on Jurisdiction and Case Management Stay

Legal Issues

  1. 1 Does the English court have jurisdiction over the Part 8 Claim under the exclusive jurisdiction clause in the Notes?
  2. 2 Should a case management stay be granted pending determination of Spanish Homologation Proceedings?

Ratio Decidendi

The English court has jurisdiction under the exclusive jurisdiction clause in the Notes, as the Event of Default issue arises directly from the Notes and not from the Syndicated Financing Agreement. There is no competing jurisdiction clause applicable to the Homologation Proceedings. There is no strong or compelling reason to grant a case management stay, and the balance of convenience favours allowing the Part 8 Claim to proceed in England.

Court Disposition

Application for declaration that the court has no jurisdiction dismissed; application for case management stay refused.

Orders

  • The English court retains jurisdiction over the Part 8 Claim.
  • No case management stay is granted.