RPC updates

Section 1782 order allowed
RPC
  • Litigation
  • United Kingdom
  • 18 September 2018

The Commercial Court recently discharged an injunction restraining the enforcement of a US court order made under Section 1782 of Title 28 of the US Code (Assistance to foreign and international tribunals and to litigants before such tribunals). Section 1782 applications can be a useful weapon in an English litigator's armoury as a means of obtaining evidence under the control of a US-based entity through US-style discovery, including by the use of depositions and documentary evidence.

Extending Mareva relief against third parties
RPC
  • Litigation
  • Hong Kong
  • 18 September 2018

In certain circumstances the courts in Hong Kong can extend Mareva relief against a defendant to third parties under the so-called 'Chabra' jurisdiction. In a recent case, the assets which the trustees sought to locate were not directly held by the bankrupt, but appear to have been indirectly held through a family trust and related companies. As before, the court demonstrated its willingness to extend Mareva relief under the Chabra jurisdiction in deserving cases.

Negligent misstatement and undisclosed principals – a gamble not worth taking
RPC
  • Litigation
  • United Kingdom
  • 11 September 2018

The Supreme Court recently ruled that a bank providing a reference relating to its customer owed a tortious duty of care only to the addressee. The decision reflects the wider judicial trend of restricting the circumstances in which duties of care for negligent misstatement are found to exist on the basis of an assumption of responsibility by the party making the statement.

ISDA agreement wins jurisdiction clause battle in Court of Appeal
RPC
  • Litigation
  • United Kingdom
  • 04 September 2018

The Court of Appeal recently confirmed that an English jurisdiction clause in the underlying International Swaps and Derivatives Association Master Agreement under which certain swaps were made should be applied to disputes relating to the swap transactions, rather than an Italian jurisdiction clause in a competitor agreement governing the parties' generic relationship.

Mis-selling claim dismissed
RPC
  • Litigation
  • Hong Kong
  • 04 September 2018

A recent decision of the Court of First Instance confirms the conventional thinking that a relationship between a bank and a customer does not of itself give rise to a duty of care to advise on the part of the bank. The court dismissed the claimant investor's mis-selling claim against the bank on the basis that neither the terms of the relevant contracts entered into with the bank nor the circumstances of the case suggested that there had been an assumption of a duty to advise by the bank.

Football club's entire agreement clause performs impressive save against negligent misrepresentation claim
RPC
  • Litigation
  • United Kingdom
  • 28 August 2018

A recent case serves as a lesson that context is key to a watertight entire agreement clause. The purchasers of Nottingham Forest Football Club brought a negligent misrepresentation claim against the club's sellers. The sellers denied the claim and argued that the share purchase agreement provided a contractual procedure for dealing with any misrepresentations of the club's liabilities, and that the relevant entire agreement clause should therefore be read in that context.

Non-party access to documents on court file: normal service resumes
RPC
  • Litigation
  • United Kingdom
  • 21 August 2018

A master's decision to allow a non-party to proceedings to access a wide range of documents in the proceedings was recently reviewed by the Court of Appeal. As well as providing useful guidance on how the court should deal with applications by non-parties for access to documents, this case is a reminder to parties to proceedings that they should be aware of the potential loss of confidentiality.

Cross-border insolvency regime – past and future
RPC
  • Litigation
  • Hong Kong
  • 21 August 2018

There are no statutory provisions empowering the Hong Kong courts to provide assistance and recognition to foreign insolvency office holders. The courts therefore rely on their inherent power (where appropriate) under the common law principle of modified universalism to provide such assistance. Although the application of this principle is not without its problems, the courts in recent years have shown some willingness to assist the effective implementation of cross-border insolvency and restructuring regimes.

Importance of industry-standard documentation when considering competing jurisdiction clauses
RPC
  • Litigation
  • United Kingdom
  • 14 August 2018

A recent case reiterates the significance that the courts will ascribe to the use of industry-standard documentation when considering 'competing' jurisdiction clauses in related contracts. The case also provides an important reminder of the necessity of seeking the court's direction before engaging expert evidence, particularly in the interim stages of litigation.

Court of Appeal on expert evidence
RPC
  • Litigation
  • Hong Kong
  • 07 August 2018

The Court of Appeal's judgment in Shenzhen Futaihong Precision Industry Co Ltd v BYD Co Ltd is another recent example of the courts in Hong Kong trying to narrow the issues in respect of which parties seek permission to adduce expert evidence. In this case, the court refused to interfere with a lower court's case management decision that had granted the defendants permission to adduce expert evidence with respect to only one issue out of 10 contested issues that the defendants sought to raise.

Important issues relating to effect and interpretation of non-assignment clauses
RPC
  • Litigation
  • United Kingdom
  • 07 August 2018

A recent case considered the interaction between a warranty in a receivables financing contract which specified that one of the parties was not prohibited from disposing of the receivable and a clause expressly prohibiting assignment without the other party's consent in an underlying sale and purchase agreement. The case raises important issues relating to the effect and interpretation of non-assignment clauses and suggests that this is an area ripe for further consideration by the Supreme Court.

Court of Appeal clarifies correct approach to interpretation of dependent obligations
RPC
  • Litigation
  • United Kingdom
  • 31 July 2018

The Court of Appeal recently held that agreements for the transfer and purchase of shares give rise to dependent obligations and that one party does not therefore become a debtor to the counterparty immediately as a result of their failure to pay. This judgment has implications for the forms of redress available to the wronged party in analogous situations and makes clear the commercial approach to contractual disputes encouraged by the courts.

Significant increases to District Court's monetary jurisdiction
RPC
  • Litigation
  • Hong Kong
  • 24 July 2018

Significant increases to the jurisdictional limits for civil claims in the District Court have been proposed. The upper limit of the monetary jurisdiction for the Small Claims Tribunal is also set to increase. The Legislative Council of Hong Kong recently passed resolutions which increase these jurisdictional limits by way of amendments to the District Court Ordinance and the Small Claims Tribunal Ordinance.

Court of Appeal upholds wide exclusion clause
RPC
  • Litigation
  • United Kingdom
  • 17 July 2018

The Court of Appeal has held that a remarkably broad exclusion clause was not unreasonable within the framework of the Unfair Contract Terms Act 1977. The judgment includes a discussion of various factors which the court will take into account when deciding such cases.

More dismissal of 'dormant' claims
RPC
  • Litigation
  • Hong Kong
  • 10 July 2018

Defendants should welcome the recent judgment in Fiscalink International Ltd v Yiu Yu Sum Alex, in which the court struck out the plaintiffs' claims against a majority of the defendants on the basis that the lack of progress over many years was an abuse of process such that the entire action against those defendants should be dismissed. The court's judgment is another example at first instance of a pragmatic application of the relevant principles concerning dismissal for abuse of process.

Contractual fiction clauses, unfair contract terms, parliamentary sovereignty and limits of party autonomy
RPC
  • Litigation
  • United Kingdom
  • 03 July 2018

In a recent decision, the Court of Appeal set down a significant marker that so-called 'contractual estoppel' has no special status and is to be treated as just another form of exclusion of liability. In particular, it was ruled for the first time that any reliance on a contractual estoppel to seek to defend a claim for pre-contractual misrepresentation is an attempt to exclude liability which falls to be assessed for reasonableness under the Unfair Contract Terms Act 1977.

Court clarifies admissibility of mainland court judgment
RPC
  • Litigation
  • Hong Kong
  • 26 June 2018

The High Court recently analysed the rationale behind the common law principle in Hollington v F Hewthorn & Co Ltd when determining the admissibility of parts of an earlier judgment of a Beijing court arising out of criminal proceedings. The court clarified that under Hong Kong common law, the Hollington principle did not prevent the courts from admitting factual evidence referred to in an earlier judgment of another court or tribunal.

Court of Appeal clarifies meaning of 'knowledge' for purposes of Limitation Act
RPC
  • Litigation
  • United Kingdom
  • 26 June 2018

The Court of Appeal recently provided helpful clarification on what constitutes 'knowledge' for the purposes of Section 14A of the Limitation Act 1980. The judgment reiterates that it is not when the claimant first knew they might have a claim for damages against the defendant that is relevant; rather, it is when they knew enough to make it reasonable to investigate further and, if necessary, obtain professional advice.

Guidance on factors to be considered in assessment of worldwide freezing orders
RPC
  • Litigation
  • United Kingdom
  • 19 June 2018

Freezing orders are a valuable weapon in the arsenal of parties seeking enforcement in England and Wales. However, they come with a heavy responsibility on the part of the applicant. If one gets it wrong, a great deal of time, effort, costs and tactical initiative are likely to be lost. The High Court recently provided helpful guidance as to which factors may be relevant when determining whether a freezing order should be discharged.

Court finds no contract without parties' signatures
RPC
  • Litigation
  • United Kingdom
  • 12 June 2018

In a recent dispute about the existence of a contract, the High Court found that the parties intended to be bound only when all parties had signed. An open-ended duty to negotiate in good faith was void for uncertainty and the claim was struck out. This case is a useful reminder of several principles, including that an obligation to negotiate in good faith must be tightly drafted and time limited in order to be effective.

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