Elektrim SA v Vivendi Holdings 1 Corp

Elektrim SA v Vivendi Holdings 1 Corp

The Florida proceedings by VH1 were, in substance, claims to enforce the Trust Deed and Bond Conditions and sought to recover losses suffered by all bondholders as a class. The no-action clause barred such claims, whether framed in contract or tort. The claims were also hopeless, vexatious, and a collateral attack on binding English court decisions. The anti-suit injunctions were properly granted to restrain VH1 from pursuing the Florida proceedings.

Parties
Appellant/defendant: Elektrim S. A.; Respondent/claimant: Law Debenture Trust Corporation PLC; Appellant/defendant: Vivendi Holdings 1 Corp
Jurisdiction
England and Wales
Judgment Date
24 October 2008
Procedural Posture
Civil Appeal / Appeal From Chancery Division to Court of Appeal
Outcome
Appeal dismissed; permission to appeal refused
Legal Topics
No Action Clauses, Anti Suit Injunctions, Bondholder Rights, Trustee Duties, Vexatious Litigation, Jurisdiction, Fraud Claims
Commercial Law Trust Law Conflict of Laws No Action Clauses Anti Suit Injunctions Bondholder Rights Trustee Duties Vexatious Litigation +2 more

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Parties

Elektrim S. A.

Appellant/defendant

Law Debenture Trust Corporation PLC

Respondent/claimant

Vivendi Holdings 1 Corp

Appellant/defendant

Procedural Posture

Civil Appeal / Appeal From Chancery Division to Court of Appeal

Legal Issues

  1. 1 Whether the no-action clause in the Trust Deed and Bond Conditions bars VH1 from pursuing claims in Florida courts against Elektrim and the Trustee
  2. 2 Whether the anti-suit injunctions granted by the Chancery Division were proper
  3. 3 Whether the claims in Florida were vexatious or oppressive and an abuse of process

Ratio Decidendi

The Florida proceedings by VH1 were, in substance, claims to enforce the Trust Deed and Bond Conditions and sought to recover losses suffered by all bondholders as a class. The no-action clause barred such claims, whether framed in contract or tort. The claims were also hopeless, vexatious, and a collateral attack on binding English court decisions. The anti-suit injunctions were properly granted to restrain VH1 from pursuing the Florida proceedings.

Court Disposition

Appeal dismissed; permission to appeal refused

Orders

  • VH1's appeal against the injunction in favour of Elektrim is dismissed
  • VH1's application for permission to appeal against the order in favour of the Trustee is dismissed