On 5-6 October 2016, Hugh Mercer QC is representing the defendant in a case brought by a London derivatives broker, AMTF, against a Munich law firm, Marzillier. AMTF claims damages against Marzillier for advising their clients (who had invested with AMTF) to sue AMTF in the German courts. The German proceedings are alleged to be in breach of an exclusive English jurisdiction clause in the investors’ contracts with AMTF and Marzillier is alleged to have induced such breach by the investors. AMTF alleges that the damage for the purposes of Article 5(3) of the Brussels Regulation is the deprivation of the benefit of being sued in London. The Court of Appeal held that “the damage” occurred in Germany when the German proceedings were issued. Marzillier also argue that in any event the cause of action against them for inducing breach of a jurisdiction clause calls into question the appropriateness of the investors’ proceedings in Germany which cannot qualify as damage under Article 5(3) and which in any event is contrary to the scheme of the Brussels Regulation.
