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Conflict of laws – Jurisdiction. The Privy Council allowed an appeal arising out foreign insolvency proceedings concerning a company owned by Bernard Madoff. The trustee in bankruptcy of the company had sought to enforce a default judgment obtained in New York against the appellant company in Gibraltar, where it held substantial assets. The trustee's application for summary judgment was allowed in part by the Court of Appeal of Gibraltar, which ruled that the trustee's claim that the appellant had agreed to submit to the jurisdiction of the state of New York had a reasonable prospect of success. The Privy Council, allowing the appellant's appeal, held that, on the facts, there was no basis for the assertion that there was a contractual term that the appellant had submitted to the New York jurisdiction. It held that an agreement to submit to a jurisdiction of a foreign court did not have to be contractual in nature and might be implied as a matter of fact, or by law. In any event, even if a jurisdiction agreement was to be implied, it would not apply to the present avoidance proceedings.
Conflict of laws – Jurisdiction. The Privy Council allowed an appeal arising out foreign insolvency proceedings concerning a company owned by Bernard Madoff. The trustee in bankruptcy of the company had sought to enforce a default judgment obtained in New York against the appellant company in Gibraltar, where it held substantial assets. The trustee's application for summary judgment was allowed in part by the Court of Appeal of Gibraltar, which ruled that the trustee's claim that the appellant had agreed to submit to the jurisdiction of the state of New York had a reasonable prospect of success. The Privy Council, allowing the appellant's appeal, held that, on the facts, there was no basis for the assertion that there was a contractual term that the appellant had submitted to the New York jurisdiction. It held that an agreement to submit to a jurisdiction of a foreign court did not have to be contractual in nature and might be implied as a matter of fact, or by law. In any event, even if a jurisdiction agreement was to be implied, it would not apply to the present avoidance proceedings.
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