Facts

According to a public deed dated February 20, 1962, Ms. Halilovic and Attorney Klauser founded the company Elo Versand- und Verkaufshaus GmbH with its registered office in Zurich. Prior to the formation of the company, Ms. Halilovic had deposited the share capital of 20,000 CHF into a blocked account at the Swiss Bank Corporation. On April 18/19, 1962, the bank paid the amount of 19,000 CHF to Ms. Halilovic, although it did not have the authorization of the account holder, Elo GmbH.

Elo GmbH subsequently sued the bank for the payment of the 19,000 CHF. The bank notified Ms. Halilovic of the dispute, but withdrew from continuing the proceedings and left the case to Ms. Halilovic at her own expense. The Commercial Court of Zurich ordered the bank corporation to pay the amount to Elo GmbH in a default judgment.

In a subsequent proceeding, the bank corporation sued Ms. Halilovic for the reimbursement of the 19,000 CHF. The District Court and the High Court of Zurich upheld the claim, as Ms. Halilovic would have been obliged in good faith to join the previous proceedings, which she had failed to do.

Considerations

The Federal Supreme Court confirmed the judgment of the High Court. It stated that the effects of the notification of the dispute between the notifier and the party called to the dispute are to be assessed according to federal civil law. Ms. Halilovic was obliged in good faith to assist the plaintiff (bank corporation) in the previous proceedings against Elo GmbH, as without her support, it could not have proven that the payment to her was justified.

Since Ms. Halilovic did not comply with the notification of the dispute, she must accept the judgment of the Commercial Court against her. It follows that…