09.04.2025 / Deals & Cases

Case: Wenger Vieli successfully represents a French company in the enforcement of French damages judgments

Wenger Vieli secured a landmark decision before the Schwyz Cantonal Court regarding the enforcement of French damages judgments in Switzerland. In its judgment BEK 2024 90 of 22 October  2024, the court upheld the lifting of the stay of execution for claims for damages, even though these contained elements that could be considered punitive damages.

The client, a French company, was awarded damages in France against a Swiss stock corporation. During enforcement in Switzerland, the debtor objected, arguing that the damages constituted punitive damages that violated Swiss ordre public. The Schwyz Cantonal Court rejected these arguments and upheld the enforcement of the French judgments.

The Schwyz Cantonal Court examined in detail the legal doctrine and cantonal case law regarding punitive damages and substantive ordre public in the recognition and enforcement of foreign judgments, an area in which there are no leading decisions from the Federal Supreme Court. The Schwyz Cantonal Court held that the dissemination of untrue allegations in the media could cause significant reputational damage to internationally active companies. The recognition and enforcement of claims for damages awarded in foreign judgments for reputational harm should only be refused if the punitive component clearly outweighs the actual harm. If this is not obvious, the debtor bears the burden of proof, and the creditor is not required to prove the existence and extent of the compensated damage. Payments of a punitive nature are to be accepted to a certain extent and are compatible with Swiss ordre public.

After the French courts had justified the substantial sums awarded on the basis of the reputational damage and expenses incurred during the proceedings, the Schwyz Cantonal Court ruled that it was neither obvious nor proven by the opposing party that the awarded sums clearly exceeded compensation. The appeal filed by the opposing party was dismissed in its entirety.

The decision of the Schwyz Cantonal Court constitutes the most comprehensive reasoning to date by a Swiss court regarding the recognition of punitive damages from the perspective of substantive ordre public and is thus groundbreaking.

The team included Peter Hafner (Partner, Litigation) and Manuela Staudenmann (Associate, Litigation).