Recognition of a foreign bankruptcy decree by the judge at the second location despite a pending jurisdiction dispute at the first location

Facts

In this case, it was about the recognition of a foreign bankruptcy decree (from Finland) in Switzerland. The bankruptcy estate and the heirs of the deceased had applied to the President of the District Court of Ostwaadt for recognition of the Finnish bankruptcy decree. However, he declared himself incompetent, as there was already a procedure pending in Zurich for the recognition of the bankruptcy.

The bankruptcy estate and the heirs appealed against this decision. The Cantonal Court of Vaud upheld the appeal, overturned the decision of the President and referred the matter back to him for re-assessment.

The debtor appealed against this decision of the Cantonal Court to the Federal Supreme Court.

Considerations

The Federal Supreme Court dismissed the appeal. It stated that Art. 167 para. 1 PILA grants jurisdiction to the judge at the second location, where recognition of the foreign bankruptcy is requested, provided he can credibly demonstrate the presence of assets within his jurisdiction. This applies even if a procedure for recognition of the bankruptcy is already pending in another canton, the jurisdiction of which has not yet been finally clarified.

Art. 167 para. 2 PILA, which gives priority to the judge first seized, does not apply in this case, as the jurisdiction of the Zurich court was not yet definitively established.

The Federal Supreme Court…