Vol 16 (2019) - Issue 2

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Goldman Sachs International v Novo Banco SA [2018] UKSC 34

Synopsis

The Supreme Court held that it had no jurisdiction over a debt claim against a bridge institution ('Novo Banco') set up by the Bank of Portugal in compliance with the EBRRD and the Reorganisation Directive despite a jurisdiction clause specifying that the loan in question was to be governed by the law of England and Wales, with any disputes under the agreement to be resolved by the exclusive jurisdiction of the English courts. This was because the decision of Banco de Portugal not to transfer the liability to Novo Banco had the effect of meaning that it was never party to the jurisdiction clause, and thus the English court had no jurisdiction.