Italian Jurisdiction in Cases of Contracts with Swiss Credit Institutions: Commentary on Ordinance No. 18636 of 2024

The recent ordinance of the Court of Cassation No. 18636 of July 8, 2024, offers significant reflections regarding jurisdiction in consumer contract matters, particularly when involving foreign credit institutions. With this decision, the judges reiterated the principle of Italian jurisdiction for actions of contractual liability, even when the contract was formally concluded abroad, but the commercial activity was directed towards the Italian market.

The Context of the Ruling

The case in question involved an Italian consumer who had filed a liability action against two Swiss credit institutions. Although the investment contracts were formally signed in Switzerland, the brokerage occurred through entities operating in Italy, which had led the consumer to trust the offers from the Swiss bank. The Court, invoking Article 15 of the Lugano Convention of October 30, 2007, established that the jurisdiction of the Italian judge is applicable when the credit institution has conducted public solicitation activities in Italy.

The action for contractual liability brought by a consumer domiciled in Italy against a Swiss credit institution falls under the jurisdiction of the Italian judge - by virtue of the "direction of activity" criterion, as stated in Article 15, paragraph 1, letter c, of the Lugano Convention of October 30, 2007 (ratified by the EU with Council Decision of November 27, 2008 and entered into force in relations with the Swiss Confederation on January 1, 2011) - when the said institution has conducted public solicitation activities through entities that present themselves as its agents or brokers or that, belonging to the same group or being otherwise linked to it, have nonetheless induced public reliance regarding the referability of their operations to the unified center of interests pertaining to the same bank.

Practical Implications of the Ruling

This decision has several important implications for consumers and banking sector operators:

  • Reliability of Institutions: Consumers may find transactions with credit institutions that conduct marketing and brokerage activities in Italy to be safer.
  • Favorable Jurisdiction: Italian consumers have the opportunity to assert their rights before Italian judges, simplifying the compensation process in case of disputes.
  • Regulatory Clarity: The ruling helps clarify the boundaries of jurisdiction between different states, in a context of increasing internationalization of banking services.

Conclusions

In summary, Ordinance No. 18636 of 2024 represents an important step forward in the protection of Italian consumers in relations with foreign credit institutions. It highlights the importance of the direction of commercial activity and strengthens the consumer's position in the context of an increasingly globalized market. It is essential that consumers are informed about their rights and the available protection methods, so they can effectively address any issues related to contracts made with foreign credit institutions.

Bianucci Law Firm