CMS represents Novo Banco Spain before CJEU
CMS Albiñana & Suárez de Lezo has represented Novo Banco Sucursal en España, before the Grand Chamber of the Court of Justice of the European Union
Spain´s Supreme Court referred a question to the Court of Justice of the European Union for a preliminary ruling on the interpretation of Article 3(2) of Directive 2001/24 of the European Parliament and of the Council of 4 April 2001 on the reorganisation and winding-up of credit institutions, in light of various decisions taken in December 2015 by Banco de Portugal in the context of Banco Espírito Santo’s resolution process whereby – in the opinion of the Supreme Court – certain liabilities were retransmitted from the bridge institution, Novo Banco, to Banco Espírito Santo. The Supreme Court raises the question whether the obligation under Article 3(2) of Directive 2001/24 of unconditional recognition of the retransmission of liabilities resulting from the decisions of the Banco de Portugal of December 2015 is contrary to the principles of legal certainty and to the fundamental right to an effective remedy.
On November 19, Advocate General Kokott delivered his opinion on the question referred for a preliminary ruling, accepting the arguments put forward by the firm in a manner that was highly favourable to the interests of Novo Banco, Sucursal España and thus proposing to the Court of Justice of the European Union answering the question referred for a preliminary ruling to the effect that the unconditional recognition of the substantive legal position resulting from the decisions of the Banco de Portugal of December 2015 does not infringe the fundamental right to an effective remedy under Article 47 of the Charter, the principle of the rule of law under Article 2 of the Treaty on European Union or the general principle of legal certainty.
The case is now awaiting the Court of Justice of the European Union´s judgement, which is expected to deliver its ruling in 2021.
CMS Albiñana & Suárez de Lezo´s team representing Novo Banco comprised Barcelona office Litigation counsel Antonio Fernández de Hoyos (pictured left), Madrid office Litigation partner Juan Ignacio Fernández Aguado (pictured right) and lawyer Elisa Martín.