Shanghai Hongtou Network Technology Co Ltd v Jagex Ltd

Shanghai Hongtou Network Technology Co Ltd v Jagex Ltd

There is a real risk of loss to Platinum if the injunction remains, particularly due to current favourable market conditions for online gaming companies, and enforcement of the cross-undertaking in China is problematic. The court is satisfied that the requirements for fortification are met, but the claimed quantum is not justified by the evidence. A fortification of £35m is appropriate to protect against the risk of loss.

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
Commercial/chancery Interim Application / Application for Fortification of Cross Undertaking in Damages
Outcome
Application for fortification granted in part
Legal Topics
Interim Injunctions, Cross Undertaking in Damages, Fortification of Undertakings, Enforcement of Foreign Judgments
Commercial Law Equity and Trusts Civil Procedure Interim Injunctions Cross Undertaking in Damages Fortification of Undertakings Enforcement of Foreign Judgments

Case Brief

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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

Commercial/chancery Interim Application / Application for Fortification of Cross Undertaking in Damages

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 justify fortification
  3. 3 Whether the injunction is causative of the alleged loss

Ratio Decidendi

There is a real risk of loss to Platinum if the injunction remains, particularly due to current favourable market conditions for online gaming companies, and enforcement of the cross-undertaking in China is problematic. The court is satisfied that the requirements for fortification are met, but the claimed quantum is not justified by the evidence. A fortification of £35m is appropriate to protect against the risk of loss.

Court Disposition

Application for fortification granted in part

Orders

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