Nater Dallafior successfully represented a client in post Swissair grounding proceedings

Nater Dallafior has successfully represented one of several defendants in an officers' liability case that was ultimately decided by the Swiss Federal Supreme Court. The facts occurred in the wake of the financial collapse of Swissair Group. It is one of the largest officers' liability cases in Switzerland. The value in dispute amounted to CHF 180 million.

The Swiss Federal Supreme Court had to assess the legality of the setup of the group-wide zero balancing cash-pooling. The court followed our client's reasoning and held that the cash pool was set up diligently and operated by the board of directors and by the management in compliance with the business judgement rule. It further found that the fact that an upstream loan is not or no longer at arm's length does not per se mean that the grant or maintenance of such loan becomes unlawful. Rather, in a financial crisis, it is the interest of each group company that group functions continue to be in existence.

For further information please see the decision of the Swiss Federal Supreme Court 4A_268/2018, dated 18 November 2019