Bank Of China v NBM LLC & Ors [2001] EWCA Civ 1933 (18 December 2001)

Bank Of China v NBM LLC & Ors [2001] EWCA Civ 1933 (18 December 2001)

The need to avoid unwarranted extra-territorial jurisdiction, to provide reasonable protection for third parties, and to clarify the Derby and Weldon proviso justifies the inclusion of the Baltic proviso in worldwide freezing orders unless inappropriate on the facts. The Baltic proviso should be included in the standard form of such orders.

Citation
[2001] EWCA Civ 1933
Parties
Claimant/appellant: Bank of China; Defendants/respondent: NBM LLC and Others; Interested Party/respondent: UBS AG
Jurisdiction
England and Wales
Judgment Date
18 December 2001
Procedural Posture
Appeal / Court of Appeal Judgment on Variation of Worldwide Freezing Order
Outcome
Appeal dismissed
Legal Topics
Freezing Injunctions, Jurisdiction, Third Party Obligations, Comity, Variation of Orders
Civil Procedure Commercial Law Freezing Injunctions Jurisdiction Third Party Obligations Comity Variation of Orders

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Parties

Bank of China

Claimant/appellant

NBM LLC and Others

Defendants/respondent

UBS AG

Interested Party/respondent

Procedural Posture

Appeal / Court of Appeal Judgment on Variation of Worldwide Freezing Order

Legal Issues

  1. 1 Whether the 'Baltic proviso' should be included in worldwide freezing orders to protect third parties such as banks from conflicting obligations under foreign law
  2. 2 Whether the standard form of worldwide freezing order provides adequate protection to third parties

Ratio Decidendi

The need to avoid unwarranted extra-territorial jurisdiction, to provide reasonable protection for third parties, and to clarify the Derby and Weldon proviso justifies the inclusion of the Baltic proviso in worldwide freezing orders unless inappropriate on the facts. The Baltic proviso should be included in the standard form of such orders.

Court Disposition

Appeal dismissed

Orders

  • No order for costs
  • Permission to appeal to House of Lords refused