Deutsche Bank AG v Comune Di Savona

Practice – Pre-trial or post-judgment relief. The Commercial Court ruled on an application, by the defendant Italian local authority (Savona) against the claimant bank (Deutsche bank), for a strike out and a stay of proceedings. The dispute arose after Savona had entered into two interest rate swaps with Deutsche bank, pursuant to an ISDA master agreement, which was governed by English law. The parties had also entered into another agreement that was governed by Italian law. Deutsche bank brought a claim in England for certain negative declarations. Savona brought a claim in the Italian court. The Commercial Court held that Savona's challenge to the English court's jurisdiction, in respect of some of the declarations claimed by Deutsche bank, succeeded because the dispute, to which the relevant declarations related, for the purpose of art 25 of the European Parliament and Council Regulation (EU) 1215/2012 (Recast), had to be regarded as the underlying Italian claim, and Deutsche bank could not show a good arguable case that the Italian claim fell within the English clause. The application for a stay in respect of the remaining declarations was dismissed.

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