In a reserved judgment, HHJ Bird has allowed CM’s application for summary judgment on its claim based on a guarantee signed by Mr Buck. Mr Buck’s defence was that the principal debtor had a crossclaim against CM and that a clause which excluded the principal debtor’s right of set-off was unenforceable as matter of Dutch law based on the principle of reasonableness and fairness in section 6:248(2) of the Dutch Civil Code. The Judge was prepared to proceed on the basis of reports produced by the parties’ Dutch lawyers, rather than requiring formal expert evidence.
HHJ Bird held that Mr Buck’s argument that the no set-off clause was unacceptable according to the standards of reasonableness and fairness under Dutch law had no real (and in fact no) prospect of success. The Judge placed weight on the fact that CM and the principal debtor were commercial parties who had entered into sophisticated agreements and had the opportunity to comment on what was a bespoke agreement. The Judge did not consider that Mr Buck’s evidence that the principal debtor had not read the clause or previously encountered one assisted.
To read the full judgment click here.
Paul was instructed by Macfarlanes LLP (Lois Horne, Noel Newman and Jennifer Shelley).

