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Lloyd's Maritime and Commercial Law Quarterly

JURISDICTION OVER RESTITUTIONARY CLAIMS

Kleinwort Benson v. Glasgow City Council 1
The long running jurisdictional battle between Kleinwort Benson Limited and Glasgow City Council (Glasgow) is finally over. Under the Modified Convention,2 which regulates jurisdiction between the courts of different parts of the United Kingdom, the House of Lords has decided, by a 3-2 majority, that Kleinwort Benson must sue Glasgow in the Scottish courts, as the courts of the defendant’s domicile. The provisions of “special jurisdiction” over claims in contract and torts upon which Kleinwort Benson relied to invoke the jurisdiction of the English courts do not apply to a claim for restitution of monies paid under an ultra vires contract. Since the European Court of Justice has already decided,3 upon a reference from the Court of Appeal,4 that it has no jurisdiction to provide a ruling which does not directly involve the interpretation of the Brussels Convention, the parties will now have to confine themselves to contesting the merits.5 In submitting their claim for fees, both sets of legal advisers may be comforted by the fact that this appeal

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