Order No. 19456 of 15/07/2024: Res Judicata and Jurisdiction Concerning Foreign Nationals

The recent Order No. 19456 of the Court of Cassation of July 15, 2024, has offered new insights into the principles of external res judicata and jurisdiction, particularly in international contexts. This judgment confirmed the jurisdiction of the High Court of Justice of London regarding disputes concerning swap contracts and bond loans, emphasizing the consequences of res judicata on future litigation.

The Concept of External Res Judicata

External res judicata refers to the situation where a judgment issued by a court of another State also has effects in Italy. Specifically, the order clarified that res judicata on jurisdiction concerning foreign nationals covers both what was argued and what could have been argued. This means that decisions already made regarding a legal situation or issues of fact or law cannot be challenged in a subsequent proceeding, even if it has different aims.

Concerning foreign nationals - External res judicata - Consequences - Factual circumstances. Res judicata on jurisdiction concerning foreign nationals covers what was argued and what could have been argued, with the consequence that the determination made regarding a legal situation or an issue of fact or law, forming the indispensable logical premise of the ruling contained in the operative part of the judgment, precludes the re-examination of the identical point of law ascertained and resolved, even if the subsequent proceeding has different aims from the first proceeding. (In this case, the Supreme Court confirmed the jurisdiction of the High Court of Justice of 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 also to subsequent disputes, initiated before the Court of Rome, aimed at obtaining the ascertainment of the bank's breach of the investment contract and compensation for resulting damages).

Implications for Future Proceedings

This ruling has significant practical implications for parties involved in international disputes. Lawyers must be aware that a foreign judgment can considerably influence any subsequent litigation. In particular, parties may find themselves in a situation where they must accept the content of external res judicata, even if the subsequent proceeding has different objectives. It is therefore crucial for parties to 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 of foreign courts can carry significant weight in national proceedings as well. This judgment invites all legal professionals to engage in in-depth reflection on the relationship between national and international jurisdiction, highlighting the importance of proper management of transnational disputes.