Offshore Litigation

Blog

Offshore Litigation

Contributors

Jonathan Addo
Jonathan Addo
  • Jonathan Addo

  • Partner
  • British Virgin Islands
Ian Mann
Ian Mann
  • Ian Mann

  • Partner
  • Hong Kong
Nick Hoffman
Nick Hoffman
  • Nick Hoffman

  • Partner
  • Cayman Islands
Vicky Lord
Vicky Lord
  • Vicky Lord

  • Partner
  • Hong Kong
Chai Ridgers
Chai Ridgers
  • Chai Ridgers

  • Partner
  • Hong Kong
William Peake
William Peake
  • William Peake

  • Partner
  • London
Peter Ferrer
Peter Ferrer
  • Peter Ferrer

  • Partner
  • British Virgin Islands
James Noble
James Noble
  • James Noble

  • Partner
  • Singapore
Jeremy Child
Jeremy Child
  • Jeremy Child

  • Partner
  • London
Claire Goldstein
Claire Goldstein
  • Claire Goldstein

  • Partner
  • British Virgin Islands
Jayson Wood
Jayson Wood
  • Jayson Wood

  • Partner
  • Cayman Islands
Phillip Kite
Phillip Kite
  • Phillip Kite

  • Partner
  • London
Stuart Cullen
Stuart Cullen
  • Stuart Cullen

  • Partner
  • British Virgin Islands
Lorinda Peasland
Lorinda Peasland
  • Lorinda Peasland

  • Consultant
  • Hong Kong
Paul Madden
Paul Madden
  • Paul Madden

  • Partner
  • Cayman Islands
Jessica Williams
Jessica Williams
  • Jessica Williams

  • Partner
  • Cayman Islands
Paula Kay
Paula Kay
  • Paula Kay

  • Partner
  • Hong Kong
Andrew Thorp
Andrew Thorp
  • Andrew Thorp

  • Partner
  • British Virgin Islands
Henry Mander
Henry Mander
  • Henry Mander

  • Partner
  • Cayman Islands
Andrew Johnstone
Andrew Johnstone
  • Andrew Johnstone

  • Partner
  • Hong Kong
Nicola Roberts
Nicola Roberts
  • Nicola Roberts

  • Partner
  • Hong Kong
Julie Engwirda
Julie Engwirda
  • Julie Engwirda

  • Partner
  • Hong Kong
Paul Smith
Paul Smith
  • Paul Smith

  • Partner
  • Cayman Islands

“Direct threats require direct action” (Dick Cheney)

For centuries, the common Law Courts have exercised the jurisdiction to intervene by injunction to prevent a wrong that is merely threatened, and not yet embarked on, both permanently after a full trial, and also on an interim basis pending the trial.

The discretion to grant the so called “quia timet” (because it fears) injunction is sparingly exercised, and applicants must in particular be cautious in seeking interim injunctions, because those sought on an urgent basis, where there is no real urgency, or without full disclosure to the Court of all relevant facts and law where the application is made ex-parte in the absence of the defendant, are liable to be refused or set aside by the Court with serious adverse cost orders.

The legal requirements for the grant of an interim quia timet injunction are that, in addition to the usual requirements for an interim injunction (including that damages awarded at trail would not be an adequate remedy), the applicant must show at least some real risk of an actionable wrong being committed if the injunction is not granted.

These issues fell to be considered by the Cayman Islands Grand Court in the recent case of Frontera Resources Corporation v Hope and Outrider Master Fund LP, where a variation to an injunction obtained by the plaintiffs against them, obtained by the defendants on an “urgent” ex parte application to vary that injunction, had itself amounted to a quia timet injunction against the plaintiffs.

The Court found that the variation should be set aside as having been obtained on the basis of affidavit evidence which had failed to disclose material facts and/or fairly to present the merits of the case, and that the legal requirements for an interim quia timet injunction were not met; the Court was also critical of the lack of urgency. The variation was set aside with costs against the defendants to be assessed on the indemnity basis.  Applicants for interim quia timet injunctions would do well to bear in mind the advice of Friar Lawrence to Romeo; “Wisely and slowly; they stumble that run fast”.

“Direct threats require direct action” (Dick Cheney)

Leave A Comment