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Exclusive English jurisdiction under modified ISDA clause; Italian proceedings only protective; CPR 6.33(2B) widened; Brexit not relevant to forum challenge (Dexia v Patrimonio del Trentino)

Published on: 07 November 2024

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Dexia Crédit Local SA v Patrimonio Del Trentino SPA [2024] EWHC 2717 (KB)

What are the practical implications of this case?

The court’s reading of a clause that designated the English courts as the exclusive forum, while not ruling out proceedings in the Italian courts, will interest those contesting jurisdiction. Where a jurisdiction clause is opaque or capable of more than one meaning, the court will interpret it in light of the surrounding factual matrix. For clauses drafted before Brexit, this may involve assuming—where the wording permits—that the parties intended an exclusive, rather than non-exclusive, choice, due to the recognition and protection that Brussels I (recast) conferred on exclusive jurisdiction clauses. In this dispute, that approach was bolstered by the standard ISDA jurisdiction provision, which stipulates exclusive jurisdiction where the selected court is within the EU and non-exclusive jurisdiction when it is outside the EU. The court’s clarification of the scope of the new contract gateway for service out of the jurisdiction also provides useful guidance to practitioners on when a claim can be served abroad without seeking permission...

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