Newland Shipping & Forwarding Ltd v Toba Trading FZC & Ors [2017] EWHC 1416 (Comm) (16 June 2017)

Newland Shipping & Forwarding Ltd v Toba Trading FZC & Ors [2017] EWHC 1416 (Comm) (16 June 2017)

The court held that the requirements for service out of jurisdiction were not met: there was no real issue to be tried against the Fifth Defendant, no proper jurisdictional gateway, and England was not the appropriate forum. The evidence did not establish the Fifth Defendant was a director or shareholder of the First Defendant at the relevant time. The delay in acknowledging service was excusable up to October 2016 but not thereafter; however, considering all circumstances, including the lack of prejudice to the Claimant and the absence of jurisdiction, it would be unjust to refuse relief from sanctions. The court granted relief, set aside service and all proceedings against the Fifth...

Citation
[2017] EWHC 1416 (Comm)
Parties
Claimant: Newland Shipping & Forwarding Limited; First Defendant: Toba Trading FZC; Second Defendant: Mr Seyed Majed Taheri; Third Defendant: Mr Hossein Rahbarian; Fourth Defendant: Mr Seyed Amin Javadi; Fifth Defendant: Mr Ahmed Sakr Mohammed Salem Al Qassimi
Jurisdiction
England and Wales
Judgment Date
16 June 2017
Procedural Posture
Commercial Claim (contract/conspiracy/conversion) / Application for Relief From Sanctions and to Dispute Jurisdiction (cpr 3.9 and CPR 11)
Outcome
Application granted for relief from sanctions and to dispute jurisdiction; service and all proceedings against the Fifth Defendant set aside; court declares no jurisdiction over the Fifth Defendant.
Legal Topics
Relief From Sanctions, Jurisdictional Challenge, Service Out of Jurisdiction, Default Judgment, Piercing the Corporate Veil
Civil Procedure Commercial Law Private International Law Relief From Sanctions Jurisdictional Challenge Service Out of Jurisdiction Default Judgment Piercing the Corporate Veil

Case Brief

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Parties

Newland Shipping & Forwarding Limited

Claimant

Toba Trading FZC

First Defendant

Mr Seyed Majed Taheri

Second Defendant

Mr Hossein Rahbarian

Third Defendant

Mr Seyed Amin Javadi

Fourth Defendant

Mr Ahmed Sakr Mohammed Salem Al Qassimi

Fifth Defendant

Procedural Posture

Commercial Claim (contract/conspiracy/conversion) / Application for Relief From Sanctions and to Dispute Jurisdiction (cpr 3.9 and CPR 11)

Legal Issues

  1. 1 Whether the Fifth Defendant should be granted relief from sanctions for late acknowledgment of service under CPR 3.9
  2. 2 Whether the court has jurisdiction over the Fifth Defendant under CPR 11 and the relevant jurisdictional gateway
  3. 3 Whether service out of the jurisdiction was properly effected and justified

Ratio Decidendi

The court held that the requirements for service out of jurisdiction were not met: there was no real issue to be tried against the Fifth Defendant, no proper jurisdictional gateway, and England was not the appropriate forum. The evidence did not establish the Fifth Defendant was a director or shareholder of the First Defendant at the relevant time. The delay in acknowledging service was excusable up to October 2016 but not thereafter; however, considering all circumstances, including the lack of prejudice to the Claimant and the absence of jurisdiction, it would be unjust to refuse relief from sanctions. The court granted relief, set aside service and all proceedings against the Fifth...

Court Disposition

Application granted for relief from sanctions and to dispute jurisdiction; service and all proceedings against the Fifth Defendant set aside; court declares no jurisdiction over the Fifth Defendant.

Orders

  • Retrospective extension of time to acknowledge service granted to the Fifth Defendant.
  • Acknowledgment of service filed on 25 January 2017 stands as valid.