Setting transactions aside involving the residents of non-EU member states

By Richard Colebourn

Insolvency proceedings were opened in Germany on 4 May 2007 in respect of the assets of a German resident, Aletta Zimmerman, and the liquidator subsequently sought to set aside a transaction that had been entered into with a resident of Switzerland.

As Switzerland is not a member state of the European Union — and is therefore not a party to the EC Regulation on Insolvency Proceedings — the question of whether the courts of a member state have jurisdiction to hear and determine an action to set a transaction aside that is brought against a person whose place of residence is not within a member state was referred to the Court of Justice of the European Communities…

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