Flux européens

As I had half hoped, half predicted, the CJEU today held differently than its AG had opined in C‑566/22 Inkreal aka Inkreal s. r.  v Dúha reality s. r. o..: 

an agreement conferring jurisdiction by which the parties to a contract who are established in the same Member State agree on the jurisdiction of the courts of another Member State to settle disputes arising out of that contract is covered under Article 25 Brussels Ia, even if that contract has no other connection with that other Member State.

The Court cites in support:

[15] ff: statutory wording: [17]: “the wording of [A25(1)] does not preclude an agreement conferring jurisdiction, by which the parties to a contract who are established in the same Member State agree on the jurisdiction of the courts of another Member State to settle disputes arising out of that contract, from being covered under that provision, even if that contract has no other connection with that other Member State.”

[18] ff: context: ‘civil matters having cross-border implications’ (recital 3) and ‘cross-border litigation’ (recital 26) are mentioned yet the ‘international element’ required is not defined. As the CJEU had already held in C-280/20, ZN v Generalno konsulstvo na Republika Bulgaria v grad Valensia, Kralstvo Ispania [the Bulgarian consulate], an equivalent concept must be used as in the order for payments Regulation. That defines the equivalent concept of ‘cross-border litigation’ as ‘one in which at least one of the parties is domiciled or habitually resident in a Member State other than the Member State of the court seised’. In current case [23] the parties to that dispute are established in a Member State other than the Member State of the court which was seised on the basis of the agreement conferring jurisdiction at issue. Moreover, [24] a question relating to the determination of international jurisdiction clearly arises in the case, more specifically whether the courts having jurisdiction to settle this dispute are those of the Czech Republic, or those of the Slovak Republic as the Member State in which the two parties are established.

Further, [26], the interpretation of A25 must also be carried out in the light of the objectives of respecting the autonomy of the parties and enhancing the effectiveness of exclusive choice-of-court agreements, as referred to in recitals 15, 19 and 22 BIa.

Moreover, [27] ff, both predictability and legal certainty, core BIa objectives, are served by the inclusion of choice of court such as in the case at issue. [29] jurisdiction can readily be considered and [30] the possibility of concurrent proceedings is minimised. [31] should choice of court in these circumstances not be valid, BIa is likely not to apply and the application of residual national PIL is likely to lead to conflicting decisions. [32] ff for courts to have to consider additional elements capable of demonstrating the cross-border impact of the dispute concerned, would create uncertainty rather than remedy it.

[35] application of BIa here also demonstrates mutual trust and increased access to justice.

Finally [36] a parallel with the Hague Choice of Court Convention clearly was not sought, quite the contrary, BIa expressly not including a similar provision illistrates its diverging intention.

An excellent judgment echoing many of my earlier expressed sentiments on the issue and arguments.

Geert.

EU Private International Law, 4th ed. 2024, 2.30.

In line with my expectation (see https://t.co/rIoSYfk1qS), the CJEU has not followed its AG on the 'international' element required to enable choice of (foreign) court under A25 Brussels Ia
C-566/22 Inkreal https://t.co/k94JgtdT2G

— Geert Van Calster (@GAVClaw) February 8, 2024

 

Real Madrid Club de Fútbol
Espace de liberté, sécurité et justice
Premier avocat général Szpunar : la violation manifeste de la liberté d’expression peut constituer un motif de refus de l’exequatur

Bundesrepublik Deutschland (Recevabilité d’une demande ultérieure)
Espace de liberté, sécurité et justice
Un arrêt de la Cour de justice peut constituer un élément nouveau justifiant un nouvel examen au fond de la demande d’asile

Ryanair / Commission (KLM II ; COVID-19)
Aide d'État
Aide d’État dans le contexte de la pandémie de Covid-19 : le Tribunal annule l’approbation d’une aide d’État des Pays-Bas s’élevant à 3,4 milliards d’euros en faveur de KLM

Scania e.a. / Commission
Concurrence
Entente sur le marché des camions : la Cour rejette le pourvoi de Scania

Symphony Environmental Technologies et Symphony Environmental / Parlement e.a.
Droit institutionnel
Produits à base de plastique oxodégradable : le Tribunal valide l’interdiction de mise sur le marché

Dyrektor Izby Administracji Skarbowej w Lublinie (Fraude d’un employé)
Fiscalité TVA
Fraude à la TVA : l’employé utilisant les données de son employeur pour émettre de fausses factures est redevable du montant des taxes qu’elles mentionnent

Reti Televisive Italiane
Liberté d'établissement
Limite horaire de spots publicitaires télévisés : les messages promotionnels de programmes de radio diffusés sur des chaînes de télévision du même groupe d’entreprises ne sont pas, en principe, des messages qui concernent les propres programmes de ces chaînes de télévision

Direktor na Glavna direktsia "Natsionalna politsia" pri MVR - Sofia
Espace de liberté, sécurité et justice
Droit à l’effacement : la conservation générale et indifférenciée, jusqu’à leur décès, de données biométriques et génétiques des personnes condamnées pénalement est contraire au droit de l’Union

Landeshauptmann von Wien (Regroupement familial avec un mineur réfugié)
Espace de liberté, sécurité et justice
Un réfugié mineur non accompagné reconnu a droit au regroupement familial avec ses parents même s’il est devenu majeur au cours de la procédure de regroupement familial

Earlier this month (9 January 2024), the Republic of Cabo Verde acceded to the Hague Convention of 23 November 2007 on the International Recovery of Child Support and Other Forms of Family Maintenance, which will enter into force for it on 12 January 2025 [Note: this is not our reading of Article 60 of the Convention]. With the accession of Cabo Verde, 49 States and the European Union will be bound by the 2007 Child Support Convention.

Source: https://www.hcch.net/en/news-archive/details/?varevent=955

Bundesrepublik Deutschland (Effet d’une décision d’octroi du statut de réfugié)
Espace de liberté, sécurité et justice
Avocate générale Medina : un État membre n’est pas tenu de reconnaître le statut de réfugié accordé dans un autre État membre

Audi (Support d’emblème sur une calandre)
Propriété intellectuelle et industrielle
Marque de l’Union européenne : un constructeur automobile peut interdire l’usage d’un signe identique ou similaire à la marque dont il est titulaire pour des pièces détachées

Laudamotion (Renoncement à un vol tardif)
Transport
Pas de droit à indemnisation forfaitaire en l’absence de présentation à l’embarquement d’un vol qui est arrivé avec un retard important ni lorsque l’achat d’un billet sur un vol de remplacement a permis d’arriver à destination avec moins de trois heures de retard

Delta-Sport Handelskontor / EUIPO - Lego (Élément de construction d'une boîte de jeu de construction)
Propriété intellectuelle et industrielle
Propriété intellectuelle : le Tribunal de l'Union européenne confirme la validité de la protection de la brique de jeu LEGO

I have frequently reported in the use of English restructuring and law, including Plans and Schemes of Arrangement, and the forum and applicable law shopping strategies for same. Readers will find the tag ‘restructuring’ or ‘scheme of arrangement’ useful.

My post on Apcoa  summarises many of the issues and cross-refers to many other postings. The same post in a later update reports on Codere, which has become standard reference, and to AGPS Bondco Plc, Re, where the Court’s jurisdiction was unsuccessfully challenged on the basis that the Issuer Substitution was ineffective or invalid as a matter of German law.

That latter judgment has now been successfully appealed in Strategic Value Capital Solutions Master Fund LP & Ors v AGPS BondCo PLC (Re AGPS BondCo PLC) [2024] EWCA Civ 24. The Court of Appeal held that the first instance judge had unjustifiably departed from the paru passi distribution of assets principle in sanctioning the cross-class cram down.

Of note for the blog however is Lord Justice Snowden’s obiter reference to the jurisdiction [29] ff as follows:

1. 1. 1. After the failure of the consent solicitation, the Group announced its intention to implement the proposed restructuring by an alternative route. This was to propose a restructuring plan under Part 26A and to ask the English court to exercise its cram down power to overcome the objections of the Appellants. To that end, the Plan Company was incorporated in England and Wales as a subsidiary of the Parent Company on 23 December 2022.

1. 1. 1. On 10 January 2023, the Appellants put forward an alternative restructuring proposal to the Group. That elicited no immediate response, but on 19 January 2023 the SteerCo informed the Company that the Appellants’ proposal was not acceptable.

1. 1. 1. On 11 January 2023 the Plan Company was substituted for the Parent Company as the issuer of the Notes, ostensibly pursuant to the substitution procedure under the Notes (the “Issuer Substitution”). In connection with that substitution, the Parent Company guaranteed the Plan Company’s obligations under the Notes, and the Parent Company issued back-to-back loan notes to the Plan Company on the same terms as the Notes.

1. 1. 1. It is self-evident, and the Plan Company accepted before the Judge, that the Issuer Substitution was carried out for the sole purpose of introducing an English company into the Group structure in order to persuade the English court to exercise its jurisdiction under Part 26A. Absent the Issuer Substitution, a proposal for the compromise of foreign law debts owed by a foreign company with no relevant connection with England would not have been entertained by the English court.

1. 1. 1. The technique of inserting a newly incorporated English company as a substitute obligor or co-obligor of debt owed by a foreign company in order to engage the jurisdiction of the English court under Part 26 or Part 26A has been used in a number of schemes and plans that have been sanctioned at first instance over the last few years: see e.g. Codere Finance (UK) Limited [2015] EWHC 3778 (Ch) and Gategroup Guarantee Limited [2021] EWHC 775 (Ch) at [12]-[23]. Mr. Bayfield KC told the Judge that it was “an established technique”. It has, however, not been the subject of consideration at an appellate level.

1. 1. 1. The Appellants did not oppose the Plan before the Judge on the basis that the Issuer Substitution was an artificial device that could not justify the exercise of discretion to sanction the Plan. The point did not, therefore, arise for consideration on this appeal. For the avoidance of doubt, and without expressing a view one way or the other, I would wish to make it clear that the fact that this judgment does not deal with this issue should not be taken as an endorsement of the technique for future cases.

1. 1. 1. The Appellants did, however, challenge the legality of the Issuer Substitution as a matter of German law, both before the Judge, and by proceedings in Germany itself. The Judge heard expert evidence and was satisfied that it complied with German law. The Appellants also indicated that irrespective of our decision on this point, they reserved the right to continue their challenge to the Issuer Substitution in Germany.

(emphasis added)

The point is clearly made obiter, seeing as the issue was not appealed (although it is being litigated in Germany, which evidently will raise interesting further issues); and of course it is possible that Snowden LJ simply mentions the issue for it was litigated at first instance. Yet often if that is the case, the Court of Appeal simply keeps schtum about it. Therefore just possibly it may be hinting that the often applied arguendo approach to jurisdiction for Schemes and Plans (“arguments put forward are not barmy and they are not really opposed by any party therefore we accept jurisdiction”) may not work at least across the board in restructuring cases.

An obiter hint of note.

Geert.

EU Private International Law, 4th ed. 2024, 5.35 ff.

Interesting, successful appeal against sanction of cross-class cram down
Held unjustified departure from pari passu distribution
Re jurisdiction [34] obiter Snowden LJ neither confirming nor rejecting technique of issuer substitution by EN corporation to justify E&W jurisdiction

— Geert Van Calster (@GAVClaw) January 24, 2024

Noah Clothing / EUIPO - Noah (NOAH)
Propriété intellectuelle et industrielle
Le Tribunal confirme que le signe figuratif NOAH peut continuer d’être enregistré comme marque de l’Union européenne pour les « polos » et les « chandails »

The Court of Justice delivered yesterday its judgment in case C‑531/22 (Getin Noble Bank S.A.), where it has, once more, defended the right of the national judge to, ex officio, examine the potential unfairness of a clause in a contract concluded by a consumer (Directive 93/13).

The decision is available in all EU languages, albeit not in English. Here is the French version:

“1) L’article 6, paragraphe 1, et l’article 7, paragraphe 1, de la directive 93/13/CEE du Conseil, du 5 avril 1993, concernant les clauses abusives dans les contrats conclus avec les consommateurs, doivent être interprétés en ce sens que : ils s’opposent à une réglementation nationale prévoyant qu’une juridiction nationale ne peut procéder d’office à un examen du caractère éventuellement abusif des clauses figurant dans un contrat et en tirer les conséquences, lorsqu’elle contrôle une procédure d’exécution forcée fondée sur une décision prononçant une injonction de payer définitive revêtue de l’autorité de la chose jugée :

– si cette réglementation ne prévoit pas un tel examen au stade de la délivrance de l’injonction de payer ou

– lorsqu’un tel examen est prévu uniquement au stade de l’opposition formée contre l’injonction de payer concernée, s’il existe un risque non négligeable que le consommateur concerné ne forme pas l’opposition requise soit en raison du délai particulièrement court prévu à cette fin, soit eu égard aux frais qu’une action en justice entraînerait par rapport au montant de la dette contestée, soit parce que la réglementation nationale ne prévoit pas l’obligation que soient communiquées à ce consommateur toutes les informations nécessaires pour lui permettre de déterminer l’étendue de ses droits.

2) L’article 3, paragraphe 1, l’article 6, paragraphe 1, l’article 7, paragraphe 1, et l’article 8 de la directive 93/13 doivent être interprétés en ce sens que : ils ne s’opposent pas à une jurisprudence nationale selon laquelle l’inscription d’une clause d’un contrat au registre national des clauses illicites a pour effet que cette clause soit considérée comme étant abusive dans toute procédure impliquant un consommateur, y compris à l’égard d’un autre professionnel que celui à l’encontre duquel la procédure d’inscription de ladite clause à ce registre national avait été engagée et lorsque la même clause ne présente pas un libellé identique à celui enregistré, mais revêt la même portée et produit les mêmes effets sur le consommateur concerné ».

Source: https://curia.europa.eu/juris/document/document.jsf?text=&docid=281795&pageIndex=0&doclang=fr&mode=req&dir=&occ=first&part=1&cid=4026751

Commission / Intel Corporation
Concurrence
L’avocate générale Medina propose à la Cour de confirmer que la Commission a appliqué de manière erronée le test AEC en ce qui concerne HP et Lenovo

Caixabank e.a. (Contrôle de transparence dans l’action collective)
Rapprochement des législations
Selon l’avocate générale Medina, la transparence des clauses « plancher » dans les contrats de prêt hypothécaire peut faire l’objet d’un contrôle dans le cadre d’une action collective