Commerzbank AG v Large [1977] ScotCS CSIH_3 (20 July 1977)

Commerzbank AG v Large [1977] ScotCS CSIH_3 (20 July 1977)

It is competent under Scots law for a creditor to claim and obtain decree for payment in a foreign currency, with provision for conversion into sterling at the date of payment or extract, to avoid prejudice from currency fluctuations and to give effect to the substance of the contractual obligation.

Citation
[1977] ScotCS CSIH_3
Parties
Pursuer: Commerzbank Aktiengesellschaft; Defender: Large
Jurisdiction
Scotland
Judgment Date
20 July 1977
Procedural Posture
Action for Payment / Inner House, Court of Session, at Advising
Outcome
Decree granted as sought by the pursuers.
Legal Topics
Foreign Currency Judgments, Enforcement of Foreign Currency Debts, Conversion Date for Currency, Competency of Foreign Currency Claims
Private International Law Contract Law Civil Procedure Foreign Currency Judgments Enforcement of Foreign Currency Debts Conversion Date for Currency Competency of Foreign Currency Claims

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Parties

Commerzbank Aktiengesellschaft

Pursuer

Large

Defender

Procedural Posture

Action for Payment / Inner House, Court of Session, at Advising

Legal Issues

  1. 1 Is it competent under Scots law for a creditor to claim and obtain decree for payment in a foreign currency?
  2. 2 What is the appropriate date for conversion of a foreign currency debt into sterling for enforcement purposes?

Ratio Decidendi

It is competent under Scots law for a creditor to claim and obtain decree for payment in a foreign currency, with provision for conversion into sterling at the date of payment or extract, to avoid prejudice from currency fluctuations and to give effect to the substance of the contractual obligation.

Court Disposition

Decree granted as sought by the pursuers.

Orders

  • Payment by the defender to the pursuers of DM 7066.90 with interest at 14.6% per annum from 22 November 1976 until payment, or the sterling equivalent at the date of payment or extract, whichever is earlier.
  • Extract to be superseded until pursuers' solicitors provide a certified statement of the exchange rate at the date of extract and the sterling equivalent, to be endorsed on the extract.