Hersov v Energy Research Lab Ltd [2024] EWHC 2604 (Ch) (15 October 2024)

Hersov v Energy Research Lab Ltd [2024] EWHC 2604 (Ch) (15 October 2024)

The claimant's failure to provide a full and frank explanation for the delay in making the without notice application for an interim injunction constituted a serious breach of duty, justifying discharge of the original order. The court should not allow the claimant to benefit from an injunction obtained in breach of this duty. Even if the order would have been made, the penal approach to non-disclosure requires discharge. The application for a renewed injunction is dismissed.

Citation
[2024] EWHC 2604 (Ch)
Parties
Claimant: James Robert Hersov; Defendant: Energy Research Lab Ltd
Jurisdiction
England and Wales
Judgment Date
15 October 2024
Procedural Posture
Unfair Prejudice Petition Under Section 994 Companies Act 2006 / Return Date Hearing of Interim Injunction; Application for Continuation of Injunction Pending Trial
Outcome
Application for renewed interim injunction dismissed; previous interim injunction discharged.
Legal Topics
Interim Injunctions, Unfair Prejudice, Shareholder Rights, Material Non Disclosure, Standing in Unfair Prejudice Petitions
Company Law Insolvency Civil Procedure Interim Injunctions Unfair Prejudice Shareholder Rights Material Non Disclosure Standing in Unfair Prejudice Petitions

Case Brief

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Parties

James Robert Hersov

Claimant

Energy Research Lab Ltd

Defendant

Procedural Posture

Unfair Prejudice Petition Under Section 994 Companies Act 2006 / Return Date Hearing of Interim Injunction; Application for Continuation of Injunction Pending Trial

Legal Issues

  1. 1 Whether the claimant breached the duty of full and frank disclosure in the without notice application for an interim injunction
  2. 2 Whether the interim injunction restraining the operation of share transfer provisions should be continued pending trial
  3. 3 Adequacy of damages as a remedy for the claimant

Ratio Decidendi

The claimant's failure to provide a full and frank explanation for the delay in making the without notice application for an interim injunction constituted a serious breach of duty, justifying discharge of the original order. The court should not allow the claimant to benefit from an injunction obtained in breach of this duty. Even if the order would have been made, the penal approach to non-disclosure requires discharge. The application for a renewed injunction is dismissed.

Court Disposition

Application for renewed interim injunction dismissed; previous interim injunction discharged.

Orders

  • Order of HHJ Monty KC dated 24 September 2024 discharged.
  • Claimant's application for continuation of interim injunction dismissed.