Cape Intermediate Holdings Ltd v Protopapas [2024] EWHC 2999 (Ch) (22 November 2024)

Cape Intermediate Holdings Ltd v Protopapas [2024] EWHC 2999 (Ch) (22 November 2024)

The South Carolina court's appointment of a receiver over the claimants is not recognisable or effective in England because the claimants were not present in South Carolina, did not submit to its jurisdiction, and the factual and legal basis for jurisdiction was comprehensively rejected in Adams v Cape Industries. The receiver has no authority to act for the claimants in England or elsewhere, and any purported acts as agent are without effect. The English court will not recognise or give effect to the South Carolina receivership order.

Citation
[2024] EWHC 2999 (Ch)
Parties
Claimant: Cape Intermediate Holdings Limited; Claimant: Cape PLC; Defendant: Peter D. Protopapas
Jurisdiction
England and Wales
Judgment Date
22 November 2024
Procedural Posture
Part 8 Claim (application for Declaratory and Injunctive Relief) / Judgment After Trial (defendant Not Appearing)
Outcome
Declaratory and injunctive relief granted to claimants.
Legal Topics
Recognition of Foreign Judgments, Corporate Presence and Agency, Piercing the Corporate Veil, Jurisdiction Over Foreign Corporations, Receivership, Abuse of Process
Private International Law Company Law Insolvency Civil Procedure Recognition of Foreign Judgments Corporate Presence and Agency Piercing the Corporate Veil Jurisdiction Over Foreign Corporations +2 more

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Parties

Cape Intermediate Holdings Limited

Claimant

Cape PLC

Claimant

Peter D. Protopapas

Defendant

Procedural Posture

Part 8 Claim (application for Declaratory and Injunctive Relief) / Judgment After Trial (defendant Not Appearing)

Legal Issues

  1. 1 Whether the English court should recognise the appointment of a receiver over an English company by a South Carolina court
  2. 2 Whether the receiver has authority to act on behalf of the claimants in England or elsewhere
  3. 3 Whether the South Carolina court had jurisdiction over the claimants under English private international law principles

Ratio Decidendi

The South Carolina court's appointment of a receiver over the claimants is not recognisable or effective in England because the claimants were not present in South Carolina, did not submit to its jurisdiction, and the factual and legal basis for jurisdiction was comprehensively rejected in Adams v Cape Industries. The receiver has no authority to act for the claimants in England or elsewhere, and any purported acts as agent are without effect. The English court will not recognise or give effect to the South Carolina receivership order.

Court Disposition

Declaratory and injunctive relief granted to claimants.

Orders

  • Declaration that the receiver has no powers to act on behalf of the claimants in England or elsewhere.
  • Injunction restraining the defendant from purporting to act as agent of the claimants in this jurisdiction and worldwide.