Secret Hotels 2 Ltd v EA Traveller Ltd

Secret Hotels 2 Ltd v EA Traveller Ltd

Both claims are sufficiently connected as they arise from the same contract and necessarily involve consideration of cross-liabilities; therefore, the proceedings involve the same cause of action for Article 27 purposes, and the English proceedings must be stayed. If Article 27 does not apply, Article 28 discretion...

Source-derived case information.

Parties
Claimant: Secret Hotels 2 Limited; Defendant: E. A. Traveller Limited
Jurisdiction
England and Wales
Judgment Date
11 May 2010
Procedural Posture
Civil Appeal / Judgment on Appeal Against Stay of Proceedings
Outcome
Appeal dismissed; stay of English proceedings upheld.
Legal Topics
Jurisdiction, Lis Pendens, Equitable Set Off, Stay of Proceedings, Council Regulation (ec) No 44/2001
Civil Procedure International Commercial Law Jurisdiction Lis Pendens Equitable Set Off Stay of Proceedings Council Regulation (ec) No 44/2001

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Parties

Secret Hotels 2 Limited

Claimant

E. A. Traveller Limited

Defendant

Procedural Posture

Civil Appeal / Judgment on Appeal Against Stay of Proceedings

Legal Issues

  1. 1 Whether English proceedings should be stayed under Article 27 or Article 28 of Council Regulation (EC) No 44/2001 due to parallel proceedings in Cyprus
  2. 2 Whether the claims in England and Cyprus involve the same cause of action
  3. 3 Whether equitable set off applies to connect the claims

Ratio Decidendi

Both claims are sufficiently connected as they arise from the same contract and necessarily involve consideration of cross-liabilities; therefore, the proceedings involve the same cause of action for Article 27 purposes, and the English proceedings must be stayed. If Article 27 does not apply, Article 28 discretion would be exercised to stay the proceedings due to close connection and risk of duplication.

Court Disposition

Appeal dismissed; stay of English proceedings upheld.

Orders

  • English proceedings stayed pursuant to Article 27 of Council Regulation (EC) No 44/2001
  • If Article 27 does not apply, stay granted under Article 28