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Vitol Bahrain v Nasdec General Trading: Commercial Court declines jurisdiction

02 May 2014

In the recent decision of Vitol Bahrain EC v Nasdec General Trading & Others the Commercial Court reaffirmed the need for caution when considering whether to bring foreign defendants within the jurisdiction of the English courts.

This judgment provides a useful reminder of the limitations of the necessary and proper party head of jurisdiction and the English court's reluctance to extend its jurisdiction to claims to which it has no territorial connection.

The case also exemplifies the importance of the formulation of a claim to the course of proceedings and strategy generally: the judge's decision was driven by his analysis of the nature of Vitol's claim against Nasdec and it is interesting to note that the outcome of the jurisdiction challenge could have been different if the claim against Nasdec had been for breach of the warranties rather than a declaration as to title.

To read the full article on this case, please click here.