Key Facts
- •Cousins Material House Limited (Cousins), a UK watch spare parts wholesaler, sued Swatch Group (Swatch) in the UK High Court for competition law violations after Swatch terminated its supply.
- •Swatch had already successfully sued Cousins for negative declaratory relief in Switzerland, with the judgment affirmed on appeal.
- •Cousins argued the Swiss proceedings violated its right to a fair trial and that some issues weren't decided in Switzerland.
- •Swatch sought to have the UK claim set aside based on res judicata and the Lugano Convention.
Legal Principles
Res judicata and recognition and enforcement of judgments under the Lugano Convention
Lugano Convention, Articles 33(1), 34(1), 36
Public policy exception to judgment recognition (Lugano Convention)
Lugano Convention, Article 34(1)
Right to a fair trial under Article 6 ECHR
European Convention on Human Rights, Article 6
Exhaustion of domestic remedies before relying on public policy exception
Smith v Huertas [2015] EWHC 3745 (Comm)
Cause of action and issue estoppel
Common law principles and Lugano Convention
Section 60A Competition Act 1998 (divergence from EU competition law)
Competition Act 1998, s.60A
Outcomes
Swatch's application to set aside the Amended Claim Form was granted.
The Swiss Courts' judgments should be recognised under the Lugano Convention. Cousins' arguments regarding a violation of its right to a fair trial and issues not decided in Switzerland were rejected. Cousins was estopped from relitigating the issues.
Rejection of Cousins' argument that the Swiss proceedings violated Article 6 ECHR
Cousins failed to demonstrate a manifest breach of Article 6. The court found that Cousins' challenge was effectively a disguised appeal on the merits and that the Swiss courts adequately considered the evidence.
Rejection of Cousins' argument that Article 101 TFEU claim (SDS) and s.60A Competition Act 1998 points were not decided in Switzerland
The court determined that these issues were implicitly addressed and decided against Cousins in the Swiss proceedings. Cousins was estopped from raising these issues separately in the English courts.