LAX SA v JBC SA (Rev1) [2024] EWHC 2042 (Comm) (01 August 2024)

LAX SA v JBC SA (Rev1) [2024] EWHC 2042 (Comm) (01 August 2024)

Where a claimant seeking a freezing injunction cannot provide fortification of its cross-undertaking in damages due to lack of assets in the jurisdiction, the court may require asset disclosure from the claimant as a condition of maintaining the injunction, to balance the interests of the parties and ameliorate the consequences of the claimant's inability to provide normal assurance.

Citation
[2024] EWHC 2042 (Comm)
Parties
Claimant: LAX SA; Defendant: JBC SA
Jurisdiction
England and Wales
Judgment Date
01 August 2024
Procedural Posture
Interim Application in Commercial Proceedings (freezing Injunction) / Post Return Date, Application to Vary Injunction
Outcome
Application for fortification refused; order for asset disclosure imposed as condition for continuation of injunction.
Legal Topics
Freezing Injunctions, Asset Disclosure, Undertaking in Damages, Fortification of Undertakings, Interim Relief
Commercial Law Civil Procedure Freezing Injunctions Asset Disclosure Undertaking in Damages Fortification of Undertakings Interim Relief

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Parties

LAX SA

Claimant

JBC SA

Defendant

Procedural Posture

Interim Application in Commercial Proceedings (freezing Injunction) / Post Return Date, Application to Vary Injunction

Legal Issues

  1. 1 Whether the claimant should be required to provide fortification of its cross-undertaking in damages
  2. 2 Whether the claimant should be required to provide asset disclosure as a condition of maintaining a freezing injunction

Ratio Decidendi

Where a claimant seeking a freezing injunction cannot provide fortification of its cross-undertaking in damages due to lack of assets in the jurisdiction, the court may require asset disclosure from the claimant as a condition of maintaining the injunction, to balance the interests of the parties and ameliorate the consequences of the claimant's inability to provide normal assurance.

Court Disposition

Application for fortification refused; order for asset disclosure imposed as condition for continuation of injunction.

Orders

  • LAX must provide worldwide disclosure of assets exceeding US$10,000 in value.
  • Disclosure capped at cumulative unencumbered equity interest of US$1 million.