Enforcing orders made in foreign insolvency proceedings

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The UK Supreme Court decision in Rubin v Eurofinance SA and what it means for BVI and Cayman -

This article sets out the potential impact in the BVI and Cayman of the much anticipated Supreme Court decision in Rubin v. Eurofinance SA [2012] UKSC 46, which was handed down on 24 October 2012. Rubin deals with the issue of whether orders made in Chapter 11 bankruptcy proceedings in the United States can be enforced as judgments of the English Courts.

COMPETING SETS OF RULES AND PRINCIPLES -

There are two sets of legal rules, each developed with very different aims in mind, which might provide the answer to this issue. First, the well-established conflict of laws rules applicable to the enforcement of foreign judgments. Secondly, the rules and principles of cross-border insolvency. Broadly speaking, the first set of rules is aimed at keeping a sovereign nation’s law and authority within its proper bounds.

The second set of rules is aimed at achieving a single insolvency in the place of the debtor’s main domicile and encouraging the co-operation of other jurisdictions in support of that insolvency, without the need for parallel proceedings. Rubin is a case in which these two sets of rules, and the principles underlying them, have clashed (with different results) as the case has worked its way through the English Courts, culminating in the Supreme Court decision.

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Published In: Bankruptcy Updates, Business Organization Updates, Civil Remedies Updates, Finance & Banking Updates, International Trade Updates

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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