Jefferies International Ltd v Landsbanki Islands HF, Court of Appeal - Commercial Court, April 28, 2009, [2009] EWHC 894 (Comm)

Reporting Judge: [2009] EWHC 894 (Comm)

President: Jefferies International Ltd v Landsbanki Islands HF

Linked as:

Extract

Jefferies International Ltd v Landsbanki Islands HF, Court of Appeal - Commercial Court, April 28, 2009, [2009] EWHC 894 (Comm)

Neutral Citation Number: [2009] EWHC 894 (Comm)

Case No: FOLIO 1209 OF 2008

IN THE HIGH COURT OF JUSTICE

QUEEN'S BENCH DIVISION

COMMERCIAL COURT

Royal Courts of Justice

Strand, London, WC2A 2LL

Date: 28/04/2009

Before :

THE HONOURABLE MR JUSTICE COOKE

- - - - - - - - - - - - - - - - - - - - -

Between :

- - - - - - - - - - - - - - - - - - - - -

Mr G Moss QC and Miss C Reffin (instructed by Herbert Smith) for the Claimant

Mr M Crystal QC and Mr C Harrison (instructed by Squire Sanders & Dempsey) for the Defendant

Hearing dates: 27 April 2009

- - - - - - - - - - - - - - - - - - - - -

Judgment

Mr Justice Cooke:

Background

1. In this action the defendant (Landsbanki) applies for a stay of the proceedings brought against it by the claimant (Jefferies). It does so in reliance on the inherent jurisdiction of this court, as reinforced by the Supreme Court Act 1981 section 49(3) and CPR 3.1(2)(f). It is recognised that this is a matter for the court's discretion although until recently Landsbanki contended that there was an automatic stay by reason of the law relating to insolvency in this country and Iceland and by reason of the national enactments of the Credit Institutions Directive which provides European wide rules for the insolvency of credit institutions and which is binding upon Iceland as an European Economic Area state (although it is not of course part of the European Community) and Landsbanki as a financial institution within such state. Only in the last few days has that case for a mandatory stay been abandoned.

2. Landsbanki is an Icelandic bank with a branch in London. It was the largest Icelandic bank when it collapsed in the Autumn of 2008. The majority of all banking transactions in Iceland were carried out by i...

See the full content of this document