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Actio pauliana and res judicata in EU insolvency proceedings

When insolvency proceedings have been opened in one EU Member State, then the European Insolvency Regulation applies and the applicable law is the law of the State of the opening (lex fori concursus). Courts of the State of the opening are also competent to hear and decide actio pauliana (avoidance actions) and apply the lex fori concursus. However, if the defendant provides proof that the normally applicable law (lex causae) does not allow any means of challenging that act in the relevant case (“veto”), then the lex fori concursus is excluded. The main question in this article is what kind of decision the court makes after a successful veto of the defendant and whether the decision has the normal effect of finality (res judicata). If the investigation of the lex causae is thorough enough from the point of a fair trial, then the res judicata effect should be normal.