Celtic Contractors Ltd. v Infinite Environmental Services Ltd. & Anor

Celtic Contractors Ltd. v Infinite Environmental Services Ltd. & Anor

The letter of 20 August 2002, even if binding, did not create an equitable charge or interest in the Barclays account funds in favour of Celtic. The balance of convenience did not favour granting a freezing injunction, as it would disrupt the construction contract and affect third parties.

Parties
Appellant: Celtic Contractors Limited; Respondent: Infinite Environmental Services Limited; Respondent: SAS International Limited
Jurisdiction
England and Wales
Judgment Date
15 April 2003
Procedural Posture
Civil Appeal / Appeal From Refusal of Interim Injunction
Outcome
appeal dismissed
Legal Topics
Interim Injunction, Freezing Order, Equitable Charge, Binding Agreement
Civil Procedure Contract Law Equity Interim Injunction Freezing Order Equitable Charge Binding Agreement

Case Brief

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Parties

Celtic Contractors Limited

Appellant

Infinite Environmental Services Limited

Respondent

SAS International Limited

Respondent

Procedural Posture

Civil Appeal / Appeal From Refusal of Interim Injunction

Legal Issues

  1. 1 Whether the letter of 20 August 2002 constituted a binding agreement between Celtic and IES
  2. 2 Whether the agreement conferred an equitable interest or charge in favour of Celtic over funds in the Barclays account
  3. 3 Whether the principles in American Cyanamid v Ethicon Ltd justified the grant of a freezing injunction

Ratio Decidendi

The letter of 20 August 2002, even if binding, did not create an equitable charge or interest in the Barclays account funds in favour of Celtic. The balance of convenience did not favour granting a freezing injunction, as it would disrupt the construction contract and affect third parties.

Court Disposition

appeal dismissed

Orders

  • Appeal dismissed
  • Appellant to pay respondent's costs summarily assessed at £10,781.45