Team Y&R Holdings Hong Kong Ltd & Ors v Ghossoub

Team Y&R Holdings Hong Kong Ltd & Ors v Ghossoub

The court declined to grant an interim anti-suit injunction because strong reasons existed not to do so: the HK Petition could not be wholly restrained as only Cavendish was bound by the SPA, and the English court could not grant unfair prejudice relief for a Hong Kong company. This would lead to fragmented proceedings and risk inconsistent decisions. The court also refused to set aside service out and alternative service, finding good reason for alternative service given failed attempts and the defendant's awareness, and that any failures of disclosure were inadvertent and not material enough to justify setting aside the orders.

Parties
Claimant: Team Y&R Holdings Hong Kong Limited; Claimant: Cavendish Square Holding B. V.; Claimant: Young & Rubicam International B. V.; Claimant: WPP 2005 Limited; Claimant: WPP PLC; Defendant: Joseph Ghossoub
Jurisdiction
England and Wales
Judgment Date
06 October 2017
Procedural Posture
Commercial Court Applications (anti Suit Injunction, Service Out, Alternative Service) / Interlocutory Applications and Ruling
Outcome
Applications for interim anti-suit injunction and to set aside service refused; service orders upheld.
Legal Topics
Anti Suit Injunctions, Exclusive Jurisdiction Clauses, Service Out of Jurisdiction, Alternative Service, Unfair Prejudice Petitions, Contract Interpretation
Commercial Law Conflict of Laws Civil Procedure Anti Suit Injunctions Exclusive Jurisdiction Clauses Service Out of Jurisdiction Alternative Service Unfair Prejudice Petitions +1 more

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Parties

Team Y&R Holdings Hong Kong Limited

Claimant

Cavendish Square Holding B. V.

Claimant

Young & Rubicam International B. V.

Claimant

WPP 2005 Limited

Claimant

WPP PLC

Claimant

Joseph Ghossoub

Defendant

Procedural Posture

Commercial Court Applications (anti Suit Injunction, Service Out, Alternative Service) / Interlocutory Applications and Ruling

Legal Issues

  1. 1 Whether an interim anti-suit injunction should be granted to restrain foreign (Hong Kong) proceedings in breach of an exclusive English jurisdiction clause
  2. 2 Whether service out of the jurisdiction and by alternative means was proper and should be set aside
  3. 3 Whether failures of full and frank disclosure or misrepresentation tainted the service orders

Ratio Decidendi

The court declined to grant an interim anti-suit injunction because strong reasons existed not to do so: the HK Petition could not be wholly restrained as only Cavendish was bound by the SPA, and the English court could not grant unfair prejudice relief for a Hong Kong company. This would lead to fragmented proceedings and risk inconsistent decisions. The court also refused to set aside service out and alternative service, finding good reason for alternative service given failed attempts and the defendant's awareness, and that any failures of disclosure were inadvertent and not material enough to justify setting aside the orders.

Court Disposition

Applications for interim anti-suit injunction and to set aside service refused; service orders upheld.

Orders

  • Interim anti-suit injunction refused.
  • Applications to set aside service out and alternative service refused.