INTEGRAL PETROLEUM SA V SCU-FINANZ AG

[2015] EWCA Civ 144, Court of Appeal, Lord Justice Jackson, Lord Justice Kitchin and Lord Justice Floyd, 26 February 2015

Conflict of laws - Oil trading agreement - Appeal against order setting aside a judgment in default - Characterisation - Choice of law - Formal validity - Rome I Regulation, article 11

The parties were oil trading companies both incorporated in Switzerland. IP had entered judgment in default in its action for damages for breach of contract against SCU-Finanz. SCU had succeeded in having that judgment set aside on the basis that it had a defence with real prospects of success, namely that the contract was not binding because it bore only one of the two signatures required by Swiss law, more specifically the statute governing the signature of a "prokurist". IP now appealed against the order setting aside the default judgment on the ground that the contract was binding regardless of the lack of a signature under English law, which was the law chosen in the contract, arguing that it would be a case of renvoi, precluded by the Rome I Regulation, to apply any part of Swiss law to the question of validity.