Replies to post #116155 on Lehman Brothers Financial SA (LEHNQ)

[cottonisking]

What was the Lugano convention about? A "Swiss Torpedo" is called a delay tactic because it is a procedural move used in international litigation to intentionally block or slow down foreign court proceedings by initiating an earlier, often superficial, legal action in Switzerland. This tactic exploits the lis pendens rule, which generally requires courts in many jurisdictions (including those under the Lugano Convention) to stay their proceedings if a case involving the same parties and subject matter is already pending elsewhere.



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The Lugano Convention is a 2007 international treaty that establishes a framework for determining which national courts have jurisdiction over cross-border civil and commercial disputes, and ensures the easy recognition and enforcement of judgments across borders. It is primarily a treaty between the European Union (EU) and three members of the European Free Trade Association (EFTA): Switzerland, Norway, and Iceland.
UK in a changing Europe
UK in a changing Europe
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Here are the key aspects of the Convention and the "Swiss Torpedo" tactic you mentioned:
Purpose of the Lugano Convention
Regional Cooperation: The Convention aligns the legal rules for cross-border litigation between EU and EFTA countries, creating a common area of justice.
Civil/Commercial Focus: It applies to civil and commercial matters, including contracts, torts, and consumer contracts, but specifically excludes bankruptcy, arbitration, wills, and social security.
Lis Pendens Rule: The Convention mandates that if the same parties bring the same dispute to courts in two different signatory countries, the court first seised (the first one to receive the filing) holds jurisdiction, and all other courts must stay their proceedings until the first court's jurisdiction is established.
EUR-Lex
EUR-Lex
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What is a "Swiss Torpedo"?
A "Swiss Torpedo"—or more broadly a "torpedo action"—exploits this lis pendens rule, as you noted.
How it Works: A party expecting to be sued (e.g., in London or Germany) proactively files a lawsuit in Switzerland (usually asking for a "negative declaration" that they are not liable) before the actual lawsuit is filed elsewhere.
The Tactic: Because Swiss courts may take longer in certain procedures or due to the timing of filing, the Swiss proceedings are "first seised". Under the Lugano Convention, this forces the faster foreign court to wait, blocking them from moving forward with the main case.
Impact: This tactic can delay the proper legal dispute for several years.
Scandinavian Studies in Law
Scandinavian Studies in Law
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Key Developments
2026 Clarification: The Swiss Federal Supreme Court clarified that filing an optional conciliation request in Switzerland is enough to establish lis pendens and "shoot down" the foreign lawsuit.
Swiss Focus: Switzerland is considered a popular forum for this tactic because it is a signatory to the Lugano Convention but not a member of the EU's stricter "recast" regulations (which have reduced this tactic inside the EU), making its courts highly efficient and reliable for initiating this process.