By a landmark decision issued on 15 July 2024, the Italian Supreme Court declared the lack of jurisdiction of the Italian Courts over a claim ultimately aimed at challenging the validity of certain derivative transaction documented by the ISDA Master Agreement (and as such subject to the English jurisdiction clause set out therein).

The Italian Supreme Court noted in particular that the same contractual relationship challenged in the Italian proceedings was the subject of a separate English Proceedings, with respect to which the English Court, by a specific judgement, had already affirmed its jurisdiction. On this basis, in accordance with articles 25 and 36 of the EU Regulation 1215/2012 (which was applicable ratione temporis), the Italian Courts were prevented from ruling on the same issues.

The judgement confirms the full validity and enforceability in Italy of English Judgements and, most notably, that the binding nature of English judgement also extends to judgements that, as in the case at stake, do not deal with the merits of the case but rather with procedural issues such as the ascertainment of jurisdiction.

Our Debt Capital Markets Focus Team breaks it all down here.