Source: All England Reporter
Publisher Citation: [2016] All ER (D) 61 (Mar)
Neutral Citation: [2016] EWHC 465 (Comm)
Court: Queen's Bench Division, Commercial Court
Judge:

Blair J

Representation Laurence Rabinowitz QC, John Odgers QC, Simon Colton and Mehdi Baiou (instructed by Slaughter and May) for the bank.
  Ali Malek QC, Richard Brent and Kate Holderness (instructed by Lipman Karas LLP) for the transport companies.
Judgment Dates: 4 March 2016

Catchwords

Contract - Breach of contract - International Swaps and Derivatives Association (ISDA) Master Agreement - Claimant Portuguese bank entering long-term interest rate swaps with defendant Portuguese transport companies - Defendants failing to make payments under swaps - Claimant seeking declarations defendants' obligations under swaps constituting legal, valid and binding obligations, enforceable in accordance with terms and payment of sums due or damages - Whether defendants lacking capacity to enter swaps - Whether relevant Convention or Portuguese law applying - Whether claimant breaching duties - Convention on the Law Applicable to Contractual Obligations 1980, art 3(3).

The Case

Contract Breach of contract. The Commercial Court made findings, overall in the claimant Portuguese bank's favour, in its claim for declarations that the defendant Portuguese transport companies' obligations under long-term interest rate swaps constituted legal, valid and binding obligations, enforceable in accordance with their respective terms. It rejected the defendants' defences that they lacked capacity to enter into the swaps, that art 3(3) of the Convention on the Law Applicable to Contractual Obligations 1980 applied and that the bank had acted in breach of its duties under the Portuguese Securities Code.

Practice Areas

If you are a LexisLibrary subscriber you can read more about this case here.