Commerzbank Aktiengesellschaft v Liquimar Tankers Management Inc

Commerzbank Aktiengesellschaft v Liquimar Tankers Management Inc

Asymmetric jurisdiction clauses are agreements conferring exclusive jurisdiction for the purposes of Article 31(2) of Brussels 1 Recast. Article 29 is without prejudice to Article 31(2), so the English court is entitled to proceed and refuse a stay, even where parallel proceedings exist in another Member State. The existence of an exclusive jurisdiction clause is a powerful factor against a discretionary stay under Article 30.

Parties
Claimant/respondent: Commerzbank Aktiengesellschaft; Defendant/applicant: Liquimar Tankers Management Inc.; Defendant/applicant: Pauline Shipping Limited
Jurisdiction
England and Wales
Judgment Date
03 February 2017
Procedural Posture
Commercial Claim / Ruling on Applications for Stay and Setting Aside Service
Outcome
applications for stay and setting aside service refused
Legal Topics
Jurisdiction Clauses, Brussels 1 Recast, Asymmetric Jurisdiction Clauses, Stay of Proceedings, Service Out of Jurisdiction
Civil Procedure International Commercial Law Jurisdiction Clauses Brussels 1 Recast Asymmetric Jurisdiction Clauses Stay of Proceedings Service Out of Jurisdiction

Case Brief

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Parties

Commerzbank Aktiengesellschaft

Claimant/respondent

Liquimar Tankers Management Inc.

Defendant/applicant

Pauline Shipping Limited

Defendant/applicant

Procedural Posture

Commercial Claim / Ruling on Applications for Stay and Setting Aside Service

Legal Issues

  1. 1 Whether asymmetric jurisdiction clauses confer exclusive jurisdiction under Article 31(2) of Brussels 1 Recast
  2. 2 Whether the English court should stay proceedings pending Greek proceedings under Article 29 or Article 30 of Brussels 1 Recast
  3. 3 Validity of asymmetric jurisdiction clauses under EU law

Ratio Decidendi

Asymmetric jurisdiction clauses are agreements conferring exclusive jurisdiction for the purposes of Article 31(2) of Brussels 1 Recast. Article 29 is without prejudice to Article 31(2), so the English court is entitled to proceed and refuse a stay, even where parallel proceedings exist in another Member State. The existence of an exclusive jurisdiction clause is a powerful factor against a discretionary stay under Article 30.

Court Disposition

applications for stay and setting aside service refused

Orders

  • Defendants' applications for a stay are refused.
  • Defendants' applications to set aside service out of jurisdiction are refused.