Civil enforcement

A possible contractual imbalance in a credit relationship between a bank and its customers does not engage the bank's liability, provided that the bank has validly fulfilled its duty to provide information. These are the main findings of judgment 4A_567/2024 of 27 May 2025. In 2013, clients entered into a mortgage loan agreement with a bank for approximately CHF 1.5 million. The interest rate was variable and corresponded to the three-month LIBOR (later SARON) plus a margin. The agreement provided[...]

When the bank makes a margin call, the client may have very little time to react and provide new funds. In its ruling 4A_389/2024 of May 8, 2025, the Federal Supreme Court reiterated its strict case law on Lombard loans, particularly with regard to clients with extensive financial knowledge and experience. In early April 2019, a client entered into a relationship with a bank. During the account opening process, the client stated that he was an investment expert, had a[...]

On 15 May 2025, the Federal Court published a ruling of principle (TF 5A_440/2024 of 31 March 2025) clarifying the following question: Are loans granted by related parties to a company without an explicit subordination agreement subordinated in the event of the company's bankruptcy? The Federal Supreme Court confirmed that claims arising from such loans must, in principle, be treated as ordinary third-class claims in the event of bankruptcy (Art. 219 para. 4 LP). However, only in exceptional cases characterised[...]

In a recent judgement, the Federal Court rejected a bank's appeal against a judgement of the Vaud Cantonal Court refusing to order the seizure of real estate belonging to the debtor's ex-wife (judgement 5A_754/2024 of 18 February 2025). Although the judgement in question mainly concerns matters of enforcement, in particular in relation to the degree of likelihood that the creditor must achieve in order to obtain a sequestration, this case is a telling example of the difficulties that a creditor[...]