C Inc Plc v L & Anor [2001] EWHC 550 (Comm) (16 March 2001)

C Inc Plc v L & Anor [2001] EWHC 550 (Comm) (16 March 2001)

The English court does not have power to grant a freezing order against a third party (Mr L) resident outside the jurisdiction where there is no substantive claim against him and the only link is a right of indemnity held by the judgment debtor (Mrs L), which is not a proprietary claim over Mr L's assets. The Chabra jurisdiction does not extend to these facts, and English law does not follow the broader Australian approach in Cardile. The court also lacks jurisdiction to join Mr L and serve him out of the jurisdiction in these circumstances.

Citation
[2001] EWHC 550 (Comm)
Parties
Claimant: Claimant (Company incorporated to acquire CPLC); First Defendant: Mrs L; Second Defendant: Mr L
Jurisdiction
England and Wales
Judgment Date
16 March 2001
Procedural Posture
Application to Set Aside Freezing Orders and Related Relief / Post Judgment, Hearing of Applications to Set Aside/confirm Freezing Orders and for Joinder/amendment
Outcome
Mr L's application to set aside the freezing order and related orders is granted. The Claimant's applications to confirm or extend the freezing order against Mr L, to join him as a party, and to serve him out of the jurisdiction are refused.
Legal Topics
Freezing Orders (mareva Injunctions), Jurisdiction Over Foreign Defendants, Agency and Indemnity Rights, Appointment of Receivers, Service Out of Jurisdiction
Civil Procedure Injunctions Enforcement of Judgments Freezing Orders (mareva Injunctions) Jurisdiction Over Foreign Defendants Agency and Indemnity Rights Appointment of Receivers Service Out of Jurisdiction

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 5 Authorities cited 20 Party arguments 2 Amounts and remedies 4
Sign in to unlock

Parties

Claimant (Company incorporated to acquire CPLC)

Claimant

Mrs L

First Defendant

Mr L

Second Defendant

Procedural Posture

Application to Set Aside Freezing Orders and Related Relief / Post Judgment, Hearing of Applications to Set Aside/confirm Freezing Orders and for Joinder/amendment

Legal Issues

  1. 1 Whether the English court has power to grant a freezing order against a third party (Mr L) resident outside the jurisdiction, against whom no substantive claim is brought, but who may be liable to indemnify the judgment debtor (Mrs L)
  2. 2 Whether the court has jurisdiction to join Mr L and serve him out of the jurisdiction
  3. 3 Whether the freezing order can extend to assets outside England and Wales

Ratio Decidendi

The English court does not have power to grant a freezing order against a third party (Mr L) resident outside the jurisdiction where there is no substantive claim against him and the only link is a right of indemnity held by the judgment debtor (Mrs L), which is not a proprietary claim over Mr L's assets. The Chabra jurisdiction does not extend to these facts, and English law does not follow the broader Australian approach in Cardile. The court also lacks jurisdiction to join Mr L and serve him out of the jurisdiction in these circumstances.

Court Disposition

Mr L's application to set aside the freezing order and related orders is granted. The Claimant's applications to confirm or extend the freezing order against Mr L, to join him as a party, and to serve him out of the jurisdiction are refused.

Orders

  • Freezing order against Mr L set aside
  • Permission to join Mr L as a party refused