Carvalho v. Hull, Blyth (Angola) Ltd.

On December 5, 1973, Joaquim Carvalho (plaintiff), a Portuguese citizen then living and working in Angola, entered into a contract to sell his interest in certain motor trading companies to the companies’ other owner, Hull, Blyth (Angola) Ltd. (Hull) (defendant), a 100-year-old English firm operating exclusively in Angola. Angola, a former Portuguese colony, was then a province of Portugal. The contract named the district court of Luanda, Angola, as the exclusive forum for resolving disputes. Portugal elected to allow Angola to become an independent country in 1975, the same year civil war broke out. A Marxist government took control of Angola and instituted a markedly changed constitution. While Angola was still generally following Portuguese law, the new constitution and ongoing changes in the country raised serious questions about property rights, the independence of the Angolan courts from the government, and how Angolan law might develop. Carvalho fled to Portugal, leaving many assets behind and fearing for his safety if he returned. Hull paid four of five installments to Carvalho but failed to pay the final installment due in January 1976. On April 29, 1977, Carvalho issued a writ in a London court, disregarding the forum-selection clause but reasoning that, since Hull was an English company, jurisdiction over Hull was appropriate in London. Hull opposed and asserted that Angolan law applied by contract and further argued that Angolan law provided multiple defenses to the claim. The London court found strong grounds for declining to enforce the contractual jurisdiction clause and allowed the London proceedings to continue. Hull filed an interlocutory appeal.