Caterpillar Financial Services Corporation v SNC Passion

Caterpillar Financial Services Corporation v SNC Passion

Article 3.3 of the Rome Convention does not apply because the loan agreement contains significant international elements beyond France. The choice of English law is valid and French banking law does not invalidate the agreement. Caterpillar is entitled to recover under the terms of the loan agreement.

Parties
Claimant: Caterpillar Financial Services Corporation; Defendant: SNC Passion
Jurisdiction
England and Wales
Judgment Date
19 March 2004
Procedural Posture
Commercial Claim / Final Judgment
Outcome
judgment for claimant
Legal Topics
Choice of Law, Rome Convention, Mandatory Rules, Loan Agreement, French Banking Law, Restitution
International Commercial Law Conflict of Laws Banking Law Choice of Law Rome Convention Mandatory Rules Loan Agreement French Banking Law +1 more

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Parties

Caterpillar Financial Services Corporation

Claimant

SNC Passion

Defendant

Procedural Posture

Commercial Claim / Final Judgment

Legal Issues

  1. 1 Whether Article 3.3 of the Rome Convention renders the choice of English law invalid due to all relevant elements being connected with France
  2. 2 Whether French banking law applies to and invalidates the loan agreement
  3. 3 Consequences of invalidity under French or English law

Ratio Decidendi

Article 3.3 of the Rome Convention does not apply because the loan agreement contains significant international elements beyond France. The choice of English law is valid and French banking law does not invalidate the agreement. Caterpillar is entitled to recover under the terms of the loan agreement.

Court Disposition

judgment for claimant

Orders

  • Caterpillar is entitled to judgment for principal, interest, late charges, and indemnity payments as per the loan agreement.
  • Caterpillar is entitled to costs of the action.