Motorola Solutions, Inc. & Ors v Hytera Communications Corporation Ltd & Ors [2020] EWHC 980 (Comm) (24 April 2020)

Motorola Solutions, Inc. & Ors v Hytera Communications Corporation Ltd & Ors [2020] EWHC 980 (Comm) (24 April 2020)

The court held that Motorola had established a real risk of dissipation of assets by Hytera, primarily based on admissible evidence of explicit threats by Hytera's CFO to move assets out of reach to frustrate enforcement, which constituted unambiguous impropriety and fell within the exception to without prejudice privilege. The seriousness of the underlying wrongdoing and the context of the threats supported the risk. Chabra relief was appropriate against Project Shortway Limited as an English subsidiary holding assets beneficially owned by Hytera. The freezing order was granted against Hytera China and Shortway, with ancillary asset disclosure orders.

Citation
[2020] EWHC 980 (Comm)
Parties
Claimant/applicant: Motorola Solutions, Inc.; Claimant/applicant: Motorola Solutions Malaysia SDN, BHD; Defendant/respondent: Hytera Communications Corporation Ltd.; Defendant/respondent: Hytera America, Inc.; Defendant/respondent: Hytera Communications America (West), Inc.; Defendant/respondent: Project Shortway Limited; Defendant/respondent: Sepura Limited
Jurisdiction
England and Wales
Judgment Date
24 April 2020
Procedural Posture
Commercial Court Application (freezing Order) / Post Judgment, Interlocutory Application for Domestic Freezing Order and Asset Disclosure
Outcome
Application granted in part
Legal Topics
Freezing Orders, Chabra Jurisdiction, Asset Dissipation, Without Prejudice Privilege, Unambiguous Impropriety, Enforcement of Foreign Judgments
Civil Procedure Commercial Law Enforcement of Judgments Freezing Orders Chabra Jurisdiction Asset Dissipation Without Prejudice Privilege Unambiguous Impropriety +1 more

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Parties

Motorola Solutions, Inc.

Claimant/applicant

Motorola Solutions Malaysia SDN, BHD

Claimant/applicant

Hytera Communications Corporation Ltd.

Defendant/respondent

Hytera America, Inc.

Defendant/respondent

Hytera Communications America (West), Inc.

Defendant/respondent

Project Shortway Limited

Defendant/respondent

Sepura Limited

Defendant/respondent

Procedural Posture

Commercial Court Application (freezing Order) / Post Judgment, Interlocutory Application for Domestic Freezing Order and Asset Disclosure

Legal Issues

  1. 1 Whether a domestic freezing order should be granted against Hytera and associated entities in support of a US judgment
  2. 2 Whether there is a real risk of dissipation of assets by Hytera
  3. 3 Whether statements made in without prejudice settlement meetings are admissible under the unambiguous impropriety exception

Ratio Decidendi

The court held that Motorola had established a real risk of dissipation of assets by Hytera, primarily based on admissible evidence of explicit threats by Hytera's CFO to move assets out of reach to frustrate enforcement, which constituted unambiguous impropriety and fell within the exception to without prejudice privilege. The seriousness of the underlying wrongdoing and the context of the threats supported the risk. Chabra relief was appropriate against Project Shortway Limited as an English subsidiary holding assets beneficially owned by Hytera. The freezing order was granted against Hytera China and Shortway, with ancillary asset disclosure orders.

Court Disposition

Application granted in part

Orders

  • Domestic freezing order granted against Hytera Communications Corporation Ltd. and Project Shortway Limited in respect of assets within the jurisdiction up to US$345,761,156.
  • Ancillary order for disclosure of assets granted.