FL-2024-000016 - [2025] EWHC 1903 (Comm)

The Claimant (‘Dexia’) is a company incorporated under the laws of France. The Defendant (‘Torino’) is an Italian municipal authority. Dexia’s claim in the action relates to 11 interest rate swap transactions, entered into between 2001 and 2006 (‘the Transactions’). The Transactions were aimed at hedging Torino’s interest rate exposure and reducing its indebtedness under 20-year variable rates bonds in a total amount of c. €400 million. The Transactions were entered into pursuant to a 1992 ISDA Master Agreement, a bespoke schedule thereto and individual trade confirmations for each of the Transactions. The Transactions are governed by English law, and subject, as Dexia contends, to exclusive English jurisdiction clauses, to which I will return.

On 11 July 2007, Torino entered into a further interest rate swap with Dexia. This Torino decided to terminate early by way of a confirmation dated 1 December 2022. These transactions are not the subject of the relief sought by Dexia in the current proceedings.

On 18 June 2024, Torino issued proceedings (‘the Italian Proceedings’) in the Court of Turin against Dexia in relation to the Transactions. I will set out in more detail below the relief which Torino seeks in the Italian Proceedings.

Dexia describes the effect of the claims in the Italian Proceedings, should they succeed, as being that they would reverse the effect of the Transactions. Dexia has challenged the jurisdiction of the Court in Turin, and denies all the claims made in the proceedings there.

Dexia issued its Claim Form in the present proceedings on 18 October 2024, seeking, amongst other things, declarations as to the validity and enforceability of the Transactions and as to the extent of the jurisdiction of the English Court. No money claim is advanced by Dexia.

These English proceedings have been served on Torino, and the documents in them have continued to be served on Torino. Torino did obtain from the Court an extension of time to serve its Acknowledgement of Service. With that exception, however, it has taken no part in the proceedings and has not engaged in them. It did not file or serve an Acknowledgement of Service.