Goldman Sachs International v Novo Banco SA: SC 4 Jul 2018

A banking facility was provided under a contract applying English law and jurisdiction. The parties now disputed whether on an assignment the dispute was to be resolved under Portuguese law.
Held: Recognition in the United Kingdom of measures by a foreign Resolution Authority in accordance with its own national legislation implementing the EBRRD. Any pan-European scheme for dealing with the systemic risks of bank failures must depend for its efficacy on the widest possible recognition of a home state’s measures in other jurisdictions where banks in the course of reorganisation may have interests or assets or under whose laws it may have contracted.
Lord Sumption said: ‘I reject the proposition, which was fundamental to both the Judge’s analysis and the appellants’ case, that the effect of the August decision can be recognised without regard to the December decision. On the face of it, the December decision was not an interpretation of the August decision or an amendment of it, retrospective or otherwise. Nor was it a retransfer of a liability previously transferred to Novo Banco. It was a ruling that under the terms of article 145-H(2) of the Banking Law and paragraph (b)(i)(a) of Annexe 2 of the August decision, the Oak liability had never been transferred. But, like the courts below, I do not think that it matters what the correct analysis of the December decision is, provided that it is accepted (as it is) that as a matter of Portuguese law it is conclusive of that point unless and until annulled by a Portuguese administrative court. It follows from the agreed propositions of Portuguese law and from the requirement of article 3.2 of the Reorganisation Directive that an English court must treat the Oak liability as never having been transferred to Novo Banco. It was therefore never party to the jurisdiction clause.’
Lord Sumption, Lord Hodge, Lady Black, Lord Lloyd-Jones JJSC, Lord Mance
[2018] UKSC 34, [2018] WLR(D) 440, [2018] 2 BCLC 141, [2018] 1 WLR 3683
Bailii, WLRD, Bailii Summary
Parliament and Council Directive 2001/24/EC, Parliament and Council Directive 2014/59/EU
England and Wales
Citing:
CitedEstasis Salotti Di Colzani Aimo Et Gianmario Colzani v Ruewa Polstereimaschinen Gmbh ECJ 14-Dec-1976
ECJ The way in which article 17 of the Convention of 27 September 1968 is to be applied must be interpreted in the light of the effect of the conferment of jurisdiction by consent, which is to exclude both the . .
CitedFour Seasons Holdings Incorporated v Brownlie SC 19-Dec-2017
The claimant and her family were in a car crash while on holiday in Egypt. The claimant’s husband and his daughter died. The holiday had been booked in England and the car excursion booked in advance from England. The hotel operator was incorporated . .
At ComCGoldman Sachs International v Novo Banco Sa ComC 7-Aug-2015
. .
CitedFour Seasons Holdings Incorporated v Brownlie SC 19-Dec-2017
The claimant and her family were in a car crash while on holiday in Egypt. The claimant’s husband and his daughter died. The holiday had been booked in England and the car excursion booked in advance from England. The hotel operator was incorporated . .
Appeal fromGuardians of New Zealand Superannuation Fund and Others v Novo Banco, Sa CA 4-Nov-2016
. .
CitedNational Bank of Greece and Athens v Metliss HL 1957
The National Bank of Greece had been created under the law of Greece. By a Greek decree, the bank was dissolved and, by the same decree, amalgamated with another bank into a new banking corporation under the name of ‘National Bank of Greece and . .
CitedLBI HF v Kepler Capital Markets SA ECJ 24-Oct-2013
ECJ Request for a preliminary ruling – Reorganisation and winding-up of credit institutions – Directive 2001/24/EC – Articles 3, 9 and 32 – National legislative act conferring on reorganisation measures the . .
CitedKotnik And Others v Drzavni Zbor Republike Slovenije ECJ 19-Jul-2016
ECJ (Judgment) Reference for a preliminary ruling – Validity and interpretation of the Banking Communication from the Commission – Interpretation of Directives 2001/24/EC and 2012/30/EU – State aid to banks in . .

Lists of cited by and citing cases may be incomplete.
Updated: 29 July 2021; Ref: scu.619945