Facts
On 11 April 1990, [A.] (Defendant) signed a publicly certified joint and several guarantee contract, in which he undertook to the Bank [X.] (Plaintiff) to be jointly and severally liable for the Plaintiff's claims against the [Z.] Holding up to a maximum amount of CHF 25 million. The guarantee contract stipulated that Swiss law shall apply and any disputes shall be adjudicated by the courts of the Canton of Zurich.
With a claim dated 1 July 1998, the Plaintiff sued the Defendant based on the guarantee contract before the District Court of Zurich for CHF 1 million plus interest. The Defendant requested the dismissal of the claim due to lack of jurisdiction of the Zurich courts.
Considerations
The Federal Supreme Court confirmed the jurisdiction of the Zurich courts. On the one hand, the jurisdiction clause in the guarantee contract is to be considered as an independent procedural agreement, the validity of which is to be examined independently of the validity of the main contract. On the other hand, the place of performance for services under a guarantee contract is, according to the general principles of the Code of Obligations, the domicile or registered…