Dell Emerging Markets (EMEA) Ltd & Ors v Systems Equipment Telecommunications Services S.A.L

Dell Emerging Markets (EMEA) Ltd & Ors v Systems Equipment Telecommunications Services S.A.L

Each respondent was found guilty of contempt because they had knowledge of the anti-suit injunctions, wilfully breached or permitted breaches, and failed to take reasonable steps to prevent breaches. Directors' liability was established on the basis of wilful inaction or encouragement. Service requirements were dispensed with as respondents had actual notice and suffered no injustice.

Parties
Claimant/applicant: Dell Emerging Markets (EMEA) Ltd; Claimant/applicant: Dell Computer SA; Claimant/applicant: Dell Technologies Inc.; Claimant/applicant: Dell FZ – LLC; Defendant/respondent: Systems Equipment Telecommunications Services S.A.L.; Respondent: Maher Chahlawi; Respondent: Marwan Junior Chahlawi; Respondent: Pierre Albert Chalhoub; Respondent: Sarah Bibi
Jurisdiction
England and Wales
Judgment Date
13 March 2020
Procedural Posture
Contempt Application (committal) in Commercial Proceedings / Judgment on Liability for Contempt; Sentencing Adjourned
Outcome
All respondents found guilty of contempt of court; sentencing adjourned.
Legal Topics
Anti Suit Injunctions, Contempt of Court, Enforcement of Foreign Judgments, Jurisdiction Clauses, Directors' Liability
Commercial Law Civil Procedure Conflict of Laws Anti Suit Injunctions Contempt of Court Enforcement of Foreign Judgments Jurisdiction Clauses Directors' Liability

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Parties

Dell Emerging Markets (EMEA) Ltd

Claimant/applicant

Dell Computer SA

Claimant/applicant

Dell Technologies Inc.

Claimant/applicant

Dell FZ – LLC

Claimant/applicant

Systems Equipment Telecommunications Services S.A.L.

Defendant/respondent

Maher Chahlawi

Respondent

Marwan Junior Chahlawi

Respondent

Pierre Albert Chalhoub

Respondent

Sarah Bibi

Respondent

Procedural Posture

Contempt Application (committal) in Commercial Proceedings / Judgment on Liability for Contempt; Sentencing Adjourned

Legal Issues

  1. 1 Whether the respondents were in contempt of court for breaching anti-suit injunctions issued by the English court restraining proceedings in Lebanon
  2. 2 Whether directors of a company can be held personally liable for contempt for company breaches
  3. 3 Whether service of the injunctions was valid and/or should be dispensed with

Ratio Decidendi

Each respondent was found guilty of contempt because they had knowledge of the anti-suit injunctions, wilfully breached or permitted breaches, and failed to take reasonable steps to prevent breaches. Directors' liability was established on the basis of wilful inaction or encouragement. Service requirements were dispensed with as respondents had actual notice and suffered no injustice.

Court Disposition

All respondents found guilty of contempt of court; sentencing adjourned.

Orders

  • Details of the findings to be provided to the national media and Judicial Office pursuant to Practice Direction (Committal for Contempt: Open Court) [2015] 1 WLR 2195 § 13(iv).