Hmicho v Barclays Bank Plc [2015] EWHC 1757 (QB) (19 June 2015)

Hmicho v Barclays Bank Plc [2015] EWHC 1757 (QB) (19 June 2015)

The court cannot have the 'high degree of assurance' required to grant interim mandatory injunctive relief, as Barclays has reasonable cause to suspect the funds in Mrs Hmicho's accounts may be controlled by Mr Hmicho, a designated person under sanctions regulations. The suspicion is justified by the origin and timing of substantial transfers from Mr Hmicho to Mrs Hmicho, particularly after Mr Hmicho was designated. Granting the injunction would risk Barclays committing a criminal offence under the UK Regulations. The balance of convenience favours Barclays, and damages are an adequate remedy.

Citation
[2015] EWHC 1757
Parties
Claimant/applicant: Elaine Hmicho; Defendant/respondent: Barclays Bank PLC
Jurisdiction
England and Wales
Judgment Date
19 June 2015
Procedural Posture
Application for Interim Mandatory Injunction / Interlocutory Hearing
Outcome
Application for interim mandatory injunction refused
Legal Topics
Interim Injunctions, EU Financial Sanctions, Bank Account Freezing, Contractual Terms and Conditions, Balance of Convenience
Banking Law Sanctions Law Contract Law Interim Injunctions EU Financial Sanctions Bank Account Freezing Contractual Terms and Conditions Balance of Convenience

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Parties

Elaine Hmicho

Claimant/applicant

Barclays Bank PLC

Defendant/respondent

Procedural Posture

Application for Interim Mandatory Injunction / Interlocutory Hearing

Legal Issues

  1. 1 Whether Barclays Bank is justified in freezing Mrs Hmicho's personal accounts under EU and UK sanctions regulations
  2. 2 Whether the funds in Mrs Hmicho's accounts are 'owned, held, or controlled' by a designated person (Mr Hmicho)
  3. 3 Whether Barclays has 'reasonable cause to suspect' it would be dealing with funds belonging to a designated person if accounts are unfrozen

Ratio Decidendi

The court cannot have the 'high degree of assurance' required to grant interim mandatory injunctive relief, as Barclays has reasonable cause to suspect the funds in Mrs Hmicho's accounts may be controlled by Mr Hmicho, a designated person under sanctions regulations. The suspicion is justified by the origin and timing of substantial transfers from Mr Hmicho to Mrs Hmicho, particularly after Mr Hmicho was designated. Granting the injunction would risk Barclays committing a criminal offence under the UK Regulations. The balance of convenience favours Barclays, and damages are an adequate remedy.

Court Disposition

Application for interim mandatory injunction refused

Orders

  • No order for Barclays to unfreeze Mrs Hmicho's accounts
  • Costs reserved