Osbourne v Persons Unknown & Ors [2023] EWHC 340 (KB) (22 February 2023)

Osbourne v Persons Unknown & Ors [2023] EWHC 340 (KB) (22 February 2023)

The court held that there is a serious issue to be tried as to whether NFTs are property and whether the defendants hold them on constructive trust for the claimant. Damages would not be an adequate remedy due to the unique and personal value of the NFTs. Service by NFT airdrop is justified given the anonymity of the defendants and lack of conventional service options. The injunction is extended and service out of the jurisdiction and by alternative means is permitted.

Citation
[2023] EWHC 340 (KB)
Parties
Claimant: Lavinia Deborah Osbourne; Defendant: Persons Unknown Category A; Defendant: Persons Unknown Category B; Defendant: Fiona Cowton; Defendant: Thembani Dube
Jurisdiction
England and Wales
Judgment Date
22 February 2023
Procedural Posture
Interim Injunction Application (civil) / Return Date Hearing Following Ex Parte Injunction
Outcome
Interim injunction granted and extended; permission for service out of the jurisdiction and by alternative means (NFT airdrop and email) granted.
Legal Topics
Cryptoassets, Non Fungible Tokens (nfts), Injunctions, Service by Alternative Means, Constructive Trust, Unjust Enrichment, Misuse of Private Information
Civil Procedure Property Law Technology Law Cryptoassets Non Fungible Tokens (nfts) Injunctions Service by Alternative Means Constructive Trust +2 more

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Parties

Lavinia Deborah Osbourne

Claimant

Persons Unknown Category A

Defendant

Persons Unknown Category B

Defendant

Fiona Cowton

Defendant

Thembani Dube

Defendant

Procedural Posture

Interim Injunction Application (civil) / Return Date Hearing Following Ex Parte Injunction

Legal Issues

  1. 1 Whether NFTs are property under English law
  2. 2 Whether an interim injunction should be granted to restrain dealing with NFTs
  3. 3 Whether service out of the jurisdiction and by alternative means (NFT airdrop) is permissible

Ratio Decidendi

The court held that there is a serious issue to be tried as to whether NFTs are property and whether the defendants hold them on constructive trust for the claimant. Damages would not be an adequate remedy due to the unique and personal value of the NFTs. Service by NFT airdrop is justified given the anonymity of the defendants and lack of conventional service options. The injunction is extended and service out of the jurisdiction and by alternative means is permitted.

Court Disposition

Interim injunction granted and extended; permission for service out of the jurisdiction and by alternative means (NFT airdrop and email) granted.

Orders

  • Injunction restraining defendants from dealing with or disposing of the NFTs 'Boss Beauties #680' and 'Boss Beauties #691' extended.
  • Permission for service of claim form and orders out of the jurisdiction granted.