ISDA Master Agreement choice of English Jurisdiction upheld
August 2010
David Barwise, Ingrid York
DOWNLOAD PDF: ISDA Master Agreement choice of English Jurisdiction upheld
In the recent case of Berliner Verkehrsbetriebe (BVG) Anstalt Des Offentlichen Rechts v JP Morgan Chase Bank N.A., JP Morgan Securities Limited [2010] EWCA Civ 309, Berliner (a German public body) has entered into a credit default swap with JPMorgan. The ISDA Master Agreement conferred exclusive jurisdiction on the English courts.
Following the occurrence of certain credit events, JPMorgan sought payment under the credit default swap in proceedings commenced in England. Berliner responded by suing JPMorgan in Germany claiming that its board decisions to enter into the credit default swap were ultra vires as a matter of German law. Berliner also challenged the jurisdiction of the English courts on the basis of the provisions of Article 22(2) and Article 25 of Council Regulation (EC) No 44/2001 (the "Regulation"). For convenience, these Articles are set out in full in the annex hereto.
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