Order No. 19456 of 15/07/2024: Res Judicata and Jurisdiction against Foreigners

The recent order No. 19456 of the Court of Cassation dated July 15, 2024, has provided new insights into the principles of external res judicata and jurisdiction, especially in international contexts. This ruling confirmed the jurisdiction of the High Court of Justice in London concerning disputes related to swap contracts and bond loans, emphasizing the consequences of res judicata on future disputes.

The Concept of External Res Judicata

External res judicata refers to the situation where a judgment issued by a court of another State has effects in Italy as well. In particular, the order clarified that the res judicata concerning jurisdiction against foreigners covers both the pleaded and the deducible. This means that decisions already made regarding a legal situation or matters of fact or law cannot be questioned in a subsequent trial, even if it has different purposes.

Against foreigners - External res judicata - Consequences - Hypothesis. The res judicata on jurisdiction concerning foreigners covers both the pleaded and the deducible, with the consequence that the determination made regarding a legal situation or a matter of fact or law, forming the indispensable logical premise of the ruling contained in the judgment's device, precludes the re-examination of the identical point of law established and resolved, even if the subsequent trial has different purposes from the first trial. (In this case, the Supreme Court confirmed the jurisdiction of the High Court of Justice in London on the premise that the effects of the res judicata of the first judgment, concerning the validity of two swap contracts issued to cover a bond loan, extended to subsequent disputes brought before the Court of Rome, aimed at obtaining a determination of the bank's breach of the investment contract and the compensation for the resulting damages).

Implications for Future Trials

This ruling has significant practical implications for parties involved in international disputes. Lawyers must be aware that a foreign judgment can significantly influence any subsequent litigation. In particular, parties may find themselves in a position of having to accept the content of an external res judicata, even if the subsequent proceeding has different objectives. It is therefore essential that parties carefully evaluate their legal strategies.

Conclusions

In conclusion, order No. 19456 of 2024 represents an important milestone in Italian jurisprudence regarding jurisdiction and external res judicata. It clarifies how decisions from foreign courts can carry significant weight even in national proceedings. This ruling invites all legal practitioners to reflect deeply on the relationship between national and international jurisdiction, highlighting the importance of proper management of transnational disputes.

Bianucci Law Firm