The plaintiffs in both cases, however, had not complied with the
allegedly requisite process, so whether they stated a claim was yet
to be decided by the Circuits.
Comes now the District Court decision in Sovereign Bonds Exchange LLC v. Federal Republic of Germany, et
al., Case No. 10-21944-CIV-ALTONAGA/Simonton (S.D. Fla.
July 2011). The case addresses whether the plaintiff is entitled to
collect on bearer bonds called German Provincial and Communal Banks
Consolidated Agricultural Loan (Provincial Bonds). Listed and sold
on the New York Stock Exchange, the Provincial Bonds defaulted when
pre-war Germany stopped paying on the bonds in 1933. On the other
hand, post-war Germany's "obligations did not arise until
reunification in 1990″ given that West Germany, "to
help establish 'normal commercial relations'",
committed to paying its prewar liabilities — this
pursuant to a London Debt Agreement, or LDA. However, to obtain
payment pursuant the LDA, a bondholder needed to assent to the
other provisions of the LDA, which apparently included compliance
with the Validation Law at issue in the Circuit decisions referred
to above. The plaintiffs in this case did not follow the Validation
The District Court determined that bonds originating in East
Germany did not give the Court subject matter jurisdiction, whereas
the Court did have subject matter jurisdiction over West German
bonds. For purposes of the East German bonds, the District Court
relied on the Second Circuit's decision in Mortimer.
With respect to the West German bonds, the District Court found
that failure to follow the Validation Law precluded a claim of
recovery, stating "Sovereign's Provincial Bonds must first
be validated in order for Plaintiff to state a claim under Rule
In a judgment harking back to the principles in Donoghue v Stevenson, the Court of Appeal has upheld the High Court's decision that the manufacturer of a defective product installed to prevent fire was not liable...
A year-long arbitration pilot scheme to provide a cost-effective, straightforward and quick method of solving legal disputes between claimants and participating members of the press commenced on the 26th July 2016.
Welcome to the Summer edition of Scots Law In Practice. The first three cases contain a common thread – the pursuer in each had a valid claim on the face of things, but in each one, faced legal difficulties in obtaining a remedy.
Each year businesses around the world face a growing number of risks that could potentially jeopardize hundreds of billions of euros.
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