Vrhovno sodišče Republike Slovenije; 2024-02-13; III Ips 28/2023
Decision by national courts in the field of European Union law — ECLI:SI:VSRS:2024:III.IPS.28.2023
Date: 2024-02-13
Subject matter: Judicial cooperation in civil matters
Origin: Slovenia

82024SI0213(51)_ENG_SUMJURE
JURE summary
JURE summary
This case, examined by the Vrhovno sodišče (hereinafter ‘the Supreme Court’), concerned the international jurisdiction of Slovenian courts in a dispute relating to alleged non-contractual liability arising from invoice fraud and the transfer of funds to a bank situated outside the European Union.
A commercial company having its seat in Slovenia (hereinafter ‘the plaintiff’) transferred EUR 150 848 to a bank account held with a bank having its registered office in the United Kingdom (hereinafter ‘the defendant’) after receiving fraudulent payment instructions sent by a third party impersonating the plaintiff’s supplier. The funds were subsequently withdrawn from that account, causing financial loss to the plaintiff. The plaintiff brought an action before the Okrožno sodišče v Ljubljani (hereinafter ‘the Court of First Instance’), seeking damages on the basis of the defendant’s alleged negligence in failing to exercise due care.
The Court of First Instance held that it had jurisdiction, reasoning that the harmful consequences had occurred in Slovenia, where the plaintiff’s business and assets were located. On the defendant’s appeal challenging international jurisdiction, the Višje sodišče v Ljubljani (hereinafter ‘the Court of Appeal’) reversed the first-instance decision and rejected the action, holding that, in cases of pure financial loss, the mere location of the injured party’s assets does not suffice to establish jurisdiction. It found that the alleged omission could have occurred only in the United Kingdom, where the defendant operated and where the relevant bank account was held.
The plaintiff lodged an appeal on points of law (revision) with the Supreme Court, alleging an erroneous application of Article 55 of the ZMZPP (1). The plaintiff argued that a foreign bank engaged in international business could and should have foreseen that its conduct might have consequences in Slovenia and that the damage materialised as a shortfall on its Slovenian bank account.
The Supreme Court first addressed the applicable jurisdictional framework following the withdrawal of the United Kingdom from the European Union. Since the proceedings were instituted after the end of the transition period under the Withdrawal Agreement (2), and the defendant has its registered office in a third State, jurisdiction fell to be determined under Slovenian law pursuant to Article 6(1) of the Brussels I Regulation (recast) (3).
General jurisdiction under Article 48(1) of the ZMZPP was not established, as the defendant’s registered office is in the United Kingdom.
The Supreme Court then analysed Article 55(1) of the ZMZPP, on which the plaintiff relied. This article provides for special jurisdiction in disputes concerning non-contractual liability if the tortious act was committed in Slovenia or if the harmful consequences occurred there. The Supreme Court held that the defendant neither performed nor omitted any act in Slovenia. It further held that the damage suffered was purely financial in nature and that the direct damage occurred in the United Kingdom, where the funds were credited to the defendant’s account and subsequently misappropriated. The mere reduction of the plaintiff’s assets in Slovenia was insufficient to establish jurisdiction based on the place where the harmful consequences occurred.
Accordingly, the Supreme Court dismissed the revision and upheld the decision of the Court of Appeal that Slovenian courts lack international jurisdiction.
(1) Zakon o mednarodnem zasebnem pravu in postopku (Private International Law and Procedure Act).
(2) Agreement on the withdrawal of the United Kingdom of Great Britain and Northern Ireland from the European Union and the European Atomic Energy Community.
(3) Regulation (EU) No 1215/2012 of the European Parliament and of the Council of 12 December 2012 on jurisdiction and the recognition and enforcement of judgments in civil and commercial matters (recast).