Invalidity of a Jurisdiction Clause in a Bank Loan Contract

Facts

The dispute opposes the heirs of Léa Morel to Roger Cornut, Léa Morel's brother-in-law, regarding the payment of a sum of 62,576 francs. Léa Morel had taken out a loan of 60,000 francs from the Swiss Volksbank, secured by the pledge of 12 bearer bonds. According to Roger Cornut, Léa Morel had gifted him these securities in 1962, while continuing to pledge them as collateral for the loan.

After Léa Morel's death, the Swiss Volksbank assigned to Roger Cornut its rights over the debit balance of Léa Morel's account. Roger Cornut then sued Léa Morel's heirs before the Geneva courts, based on this assignment and on a jurisdiction clause contained in the bank's general terms and conditions.

Léa Morel's heirs contested the validity of this jurisdiction clause and the competence of the Geneva courts, invoking Article 59 of the Federal Constitution.

Considerations

The Federal Tribunal upheld the appeal of Léa Morel's heirs and declared the Geneva courts incompetent to hear Roger Cornut's action.

Indeed, the jurisdiction clause in the bank's general terms and conditions was not sufficiently clear and prominent to clearly express Léa Morel's intention to waive…