Shanghai Hongtou Network Technology Co Ltd v Jagex Ltd [2020] EWHC 2439 (Ch) (21 July 2020)

Shanghai Hongtou Network Technology Co Ltd v Jagex Ltd [2020] EWHC 2439 (Ch) (21 July 2020)

There is a real risk of substantial loss to Platinum if the injunction remains in place, given the inability to sell Jagex shares in a favourable market and the practical unenforceability of undertakings against Chinese entities. While the applicant's detailed calculations were not fully accepted, the court found a sufficient risk of loss to justify fortification, which should be set at £35m as a proportionate and practical amount.

Citation
[2020] EWHC 2439 (Ch)
Parties
Claimant/respondent: Shanghai Hongtou Network Technology Co Limited; Defendant: Jagex Limited; Defendant/applicant: Platinum Fortune LP; Defendant/applicant: Platinum Wealth Development Limited; Defendant: Mr Duke Li Zhu; Respondent: China Minsheng Trust Co Ltd; Respondent: Huarong International Trust Co Ltd
Jurisdiction
England and Wales
Judgment Date
21 July 2020
Procedural Posture
Application for Fortification of Cross Undertaking in Damages (interim Injunction) / Interlocutory (post Injunction, Pre Trial)
Outcome
Application for fortification granted
Legal Topics
Fortification of Cross Undertaking, Enforcement of Undertakings, Interim Injunctions, Risk of Loss, Valuation of Loss, Jurisdictional Enforcement Issues
Civil Procedure Commercial Law Injunctions Fortification of Cross Undertaking Enforcement of Undertakings Interim Injunctions Risk of Loss Valuation of Loss +1 more

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Parties

Shanghai Hongtou Network Technology Co Limited

Claimant/respondent

Jagex Limited

Defendant

Platinum Fortune LP

Defendant/applicant

Platinum Wealth Development Limited

Defendant/applicant

Mr Duke Li Zhu

Defendant

China Minsheng Trust Co Ltd

Respondent

Huarong International Trust Co Ltd

Respondent

Procedural Posture

Application for Fortification of Cross Undertaking in Damages (interim Injunction) / Interlocutory (post Injunction, Pre Trial)

Legal Issues

  1. 1 Whether fortification of the cross-undertaking in damages should be ordered
  2. 2 Whether there is a sufficient risk of loss to require fortification
  3. 3 How to quantify the appropriate amount of fortification

Ratio Decidendi

There is a real risk of substantial loss to Platinum if the injunction remains in place, given the inability to sell Jagex shares in a favourable market and the practical unenforceability of undertakings against Chinese entities. While the applicant's detailed calculations were not fully accepted, the court found a sufficient risk of loss to justify fortification, which should be set at £35m as a proportionate and practical amount.

Court Disposition

Application for fortification granted

Orders

  • Claimant/respondents to provide fortification for the cross-undertaking in damages in the sum of £35m within 28 days, by secured cash deposit, bank guarantee, or other appropriate mechanism.
  • If fortification is not provided within 28 days (subject to extension on proper evidence), the injunction will lapse.