Queen’s Bench Division
The Law Debenture Trust Corpn plc v Ukraine
[2017] EWHC 655 (Comm)
2017 Jan 17–19; March 29
Blair J
International lawExercise of sovereign authorityCapacity of state to borrow under private law contractTwo foreign sovereign states entering into English private law financial transaction by which first state lent money to second stateSecond state defaulting on repaymentSecond state relying on lack of capacity to borrow above certain national law restrictions to resist application for summary judgmentWhether sovereign state’s capacity to borrow limited by national law restrictions
International lawExercise of sovereign authorityNon-justiciabilityTwo foreign sovereign states entering into English private law financial transactionActs of aggression by first state allegedly causing second to defaultSecond state relying on acts of aggression to resist application for summary judgmentWhether sovereign state’s capacity to borrow limited by national law restrictionsWhether trade restrictive measures or acts of aggression by one state against another affecting private law contract justiciableTest for implication of terms in transferable financial instrumentsWhether English court competent to rule on countermeasures in public international lawWhether acts of aggression by state constituting other reason to proceed to full trial despite no real prospect of success on claim

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