Recognition and Declaration of Enforceability of a Foreign Judgment in Insolvency Proceedings

Facts

The applicants, the estates of SAirLines AG and SAirGroup AG, were in liquidation. The respondent, the Masse en faillite ancillaire de Sabena SA, had obtained a judgment in Belgium against SAirGroup and SAirLines, which obliged them to pay damages. The respondent applied for recognition and declaration of enforceability of this judgment in Switzerland.

The High Court of the Canton of Zurich had partially granted the respondent's application and declared the judgment enforceable. The applicants lodged an appeal, arguing that the LugC was not applicable, as it was an insolvency proceeding.

Considerations

The Federal Court examined the applicability of the LugC and concluded that it was not applicable, as it was an insolvency proceeding. The court found that the dispute did not fall under the LugC, as it was based on debt enforcement and bankruptcy law and served to increase the bankruptcy estate.

The Federal Court followed the case law of the ECJ and found that the closeness of the connection between the claim and the bankruptcy proceedings was decisive. It concluded that…