Slaughter and May acts for Banco Santander Totta S.A. in successful swaps litigation

Slaughter and May acted for Banco Santander Totta S.A. (“BST”), in the case of Banco Santander Totta SA v Companhia Carris De Ferro de Lisboa SA & Ors.  This was the first case heard in the Financial List in the English High Court.

The case concerned nine interest rate swaps which four Portuguese public transport companies had entered into with BST. BST began claims in England seeking declarations that the swaps were valid and not subject to Portuguese law. The companies argued that, although the parties had chosen English law, ‘mandatory’ Portuguese law applied and invalidated the swaps. 

In March 2016, Mr Justice Blair found in favour of BST ruling all the swaps were valid and binding and not subject to Portuguese law.  

Following an appeal by the companies, on 13 December 2016, the Court of Appeal handed down judgment, again in favour of BST.