Facts
The Algerian National Liberation Front (FLN) deposited its funds with Banque Commerciale Arabe SA (BCA) in Geneva, in accounts in the name of X., Secretary-General of the FLN Political Bureau. After X.'s departure from the Political Bureau, the FLN and the Algerian Republic requested that BCA return these funds to them, but X. withdrew them before the attachment could be notified to the bank. The Algerian Republic then sued BCA and its managing director Zouhair Mardam Bey for the sums withdrawn by X.Considerations
- Swiss law applies, as the effects of X.'s power of representation towards BCA are governed by Swiss law, and the legal relationship between BCA and X. is subject to Swiss law by virtue of a choice of forum clause. - BCA only contracted obligations with X., the account holder, and not with the FLN, which was only the owner of the funds. X. did not act in the capacity of a direct representative of the FLN, and BCA did not have to be concerned with the reasons why X. was depositing or withdrawing funds from his account. BCA was therefore entitled to return the funds to…