On 27 September 2022, the English High Court granted summary judgment and declaratory relief in favour of the bank Dexia Crediop SpA ("Dexia") on a number of issues arising in its claim against the Italian province of Pesaro e Urbino ("Pesaro"). In bringing its claim, Dexia has sought declarations regarding the validity and enforceability of interest rate swaps executed between the parties in 2003 and 2005.
This is the latest in a steady stream of similar cases in recent years arising out of interest rate swaps executed by Italian public bodies shortly before the financial crisis of 2007-2008. These derivative transactions typically utilised Cross Border ISDA Master documentation which provided for English governing law and jurisdiction. Amongst the crop of ensuing English court decisions, Dexia v Pesaro is notable for being the first case in which extensive declaratory relief has been granted by way of summary judgment.