Formal Holdings Ltd & Anor v Frankland Assets Inc & Ors

Formal Holdings Ltd & Anor v Frankland Assets Inc & Ors

The claimants failed to make full and frank disclosure of material facts at the without notice hearing for extension of the claim form, including Mr King's control of both claimants and defendants, the existence of parallel BVI proceedings, and the receivership application. This unfair presentation was serious and went to the heart of whether the extension furthered the overriding objective. The September order extending the claim form must be discharged, and service set aside. Discharge is proportionate and necessary to uphold the duty of candour and the integrity of the court's process.

Parties
Claimant: Formal Holdings Limited; Claimant: FIHAG Finanz und Handels Aktiengesellschaft; Defendant: Frankland Assets Inc; Defendant: Lena Holdings Corporation; Defendant: Freeland Investment Corporation; Defendant: Dorset Investment Corporation; Defendant: Gemona Investment Corporation; Defendant: Lexington Corporation; Defendant: Maryland Investment Corporation; Defendant: Myron Investment Corporation; Defendant: Napier Investment Corporation; Defendant: Nyra Investment Corporation; Defendant: Primrose Investment Corporation; Defendant: Wellside Investment Corporation; Defendant: Bailor Invest and Finance Corporation
Jurisdiction
England and Wales
Judgment Date
02 June 2021
Procedural Posture
Commercial Debt Claim / Ruling on Application to Set Aside Extension of Claim Form Validity and Service
Outcome
Application granted; September order extending claim form validity discharged; service set aside.
Legal Topics
Extension of Claim Form Validity, Service Out of Jurisdiction, Material Non Disclosure, Exclusive Jurisdiction Clauses, Assignment of Contract, Abuse of Process
Civil Procedure Commercial Law Extension of Claim Form Validity Service Out of Jurisdiction Material Non Disclosure Exclusive Jurisdiction Clauses Assignment of Contract Abuse of Process

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Parties

Formal Holdings Limited

Claimant

FIHAG Finanz und Handels Aktiengesellschaft

Claimant

Frankland Assets Inc

Defendant

Lena Holdings Corporation

Defendant

Freeland Investment Corporation

Defendant

Dorset Investment Corporation

Defendant

Gemona Investment Corporation

Defendant

Lexington Corporation

Defendant

Maryland Investment Corporation

Defendant

Myron Investment Corporation

Defendant

Napier Investment Corporation

Defendant

Nyra Investment Corporation

Defendant

Primrose Investment Corporation

Defendant

Wellside Investment Corporation

Defendant

Bailor Invest and Finance Corporation

Defendant

Procedural Posture

Commercial Debt Claim / Ruling on Application to Set Aside Extension of Claim Form Validity and Service

Legal Issues

  1. 1 Whether the claimants failed to make full and frank disclosure at the without notice hearing for extension of claim form validity
  2. 2 Whether the September order extending the claim form should be discharged for material non-disclosure
  3. 3 Whether the claimants' conduct was abusive

Ratio Decidendi

The claimants failed to make full and frank disclosure of material facts at the without notice hearing for extension of the claim form, including Mr King's control of both claimants and defendants, the existence of parallel BVI proceedings, and the receivership application. This unfair presentation was serious and went to the heart of whether the extension furthered the overriding objective. The September order extending the claim form must be discharged, and service set aside. Discharge is proportionate and necessary to uphold the duty of candour and the integrity of the court's process.

Court Disposition

Application granted; September order extending claim form validity discharged; service set aside.

Orders

  • The order of 13 September 2018 extending the validity of the claim form is discharged.
  • Service of the claim form on the defendants in December 2018 is set aside.