| At the end of March the National Bank of Yugoslavia (NBY) issued a writ against the Republic of Slovenia, Banka Slovenije (the Republic of Slovenia's central bank), various other Slovenian banks and almost 400 commercial banks around the world. The NBY is the central bank of the Federal Republic of Yugoslavia (FRY), i.e. Serbia and Montenegro. Its fellow plaintiffs are FRY commercial banks: Beograndska Banka, Montenegrobanka, Jugobanka and Vojrodjanske. Various aspects make this action appear confusing: the mix of central and commercial banks as plaintiffs and defendants; the apparent involvement of questions of state succession now that the Socialist Republic of Yugoslavia (SRY, former Yugoslavia) no longer exists; and the role of the NBY as paying agent under that agreement. But in fact the action is simple. It is about breach of contract and joint and several liability. Joint and several liability has surfaced most recently in the context of large awards against accountancy and law firms for negligence. Because these firms are partnerships, each partner is jointly and severally liable for the whole award. The plaintiff can seek recompense from each partner for the full amount and in that way ensure complete recovery. |