Global Maritime Investments Cyprus Ltd v O.W. Supply & Trading A/S (Under Konkurs)

Global Maritime Investments Cyprus Ltd v O.W. Supply & Trading A/S (Under Konkurs)

The obligation to transfer Eligible Credit Support under the CSA is a 'payment' within the meaning of clause 3.3 of the General Terms, and is suspended during an event of default. The jurisdiction clause in the General Terms is exclusive, requiring all proceedings relating to the General Terms to be brought in England. Danish insolvency law, absent an English recognition or enforcement process, does not alter the parties' contractual rights under English law.

Parties
Claimant: Global Maritime Investments Cyprus Limited; Defendant: O. W. Supply & Trading A/S (under konkurs)
Jurisdiction
England and Wales
Judgment Date
17 August 2015
Procedural Posture
Commercial Court Application for Summary Judgment / Judgment on Application for Summary Judgment
Outcome
Summary judgment granted in part; declarations 1-3 and 5 granted, declaration 4 refused.
Legal Topics
Summary Judgment, Exclusive Jurisdiction Clauses, Close Out Netting, Insolvency Proceedings, Contract Interpretation
Commercial Law Conflict of Laws Insolvency Law Summary Judgment Exclusive Jurisdiction Clauses Close Out Netting Insolvency Proceedings Contract Interpretation

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Parties

Global Maritime Investments Cyprus Limited

Claimant

O. W. Supply & Trading A/S (under konkurs)

Defendant

Procedural Posture

Commercial Court Application for Summary Judgment / Judgment on Application for Summary Judgment

Legal Issues

  1. 1 Whether an obligation to transfer Eligible Credit Support is a 'payment' under clause 3.3 of the General Terms
  2. 2 Whether Danish insolvency law can alter or disapply the English law contract
  3. 3 Whether the jurisdiction clause in the General Terms is exclusive and prohibits proceedings elsewhere

Ratio Decidendi

The obligation to transfer Eligible Credit Support under the CSA is a 'payment' within the meaning of clause 3.3 of the General Terms, and is suspended during an event of default. The jurisdiction clause in the General Terms is exclusive, requiring all proceedings relating to the General Terms to be brought in England. Danish insolvency law, absent an English recognition or enforcement process, does not alter the parties' contractual rights under English law.

Court Disposition

Summary judgment granted in part; declarations 1-3 and 5 granted, declaration 4 refused.

Orders

  • Declaration that an Event of Default under clause 6.1.4 of the General Terms has occurred and is continuing.
  • Declaration that, pursuant to clause 1.3 of the General Terms, and for so long as an Event of Default is continuing, the Claimant is not obliged to make any payment to the Defendant, including transfer of Eligible Credit Support.