Motorola Solutions, Inc. & Ors v Hytera Communications Corporation Ltd & Ors

Motorola Solutions, Inc. & Ors v Hytera Communications Corporation Ltd & Ors

The court held that Motorola had demonstrated a real risk of dissipation of assets by Hytera, based on admissible evidence of explicit threats by Hytera's senior management to move assets to frustrate enforcement of a US judgment. The statements made in settlement meetings fell within the unambiguous impropriety exception to without prejudice privilege. Chabra relief was in principle available against Shortway as its assets could ultimately be amenable to enforcement, but the court indicated that appropriately worded freezing orders against Hytera China might suffice. Worldwide disclosure orders were refused for the foreign Hytera entities due to insufficient connection to England and the...

Parties
Applicant/claimant: Motorola Solutions, Inc.; Applicant/claimant: Motorola Solutions Malaysia SDN, BHD; Respondent/defendant: Hytera Communications Corporation Ltd.; Respondent/defendant: Hytera America, Inc.; Respondent/defendant: Hytera Communications America (West), Inc.; Respondent: Project Shortway Limited; Respondent: Sepura Limited
Jurisdiction
England and Wales
Judgment Date
24 April 2020
Procedural Posture
Commercial Freezing Order Application (post Judgment, Chabra Relief) / Ruling on Application for Domestic Freezing Order and Asset Disclosure
Outcome
Domestic freezing order granted against Hytera China (and potentially Shortway) for assets within England and Wales; worldwide disclosure order refused for foreign Hytera entities; disclosure order considered appropriate for Shortway.
Legal Topics
Freezing Injunctions, Chabra Jurisdiction, Asset Dissipation, Enforcement of Foreign Judgments, Without Prejudice Privilege, Disclosure Orders
Commercial Law Civil Procedure Private International Law Freezing Injunctions Chabra Jurisdiction Asset Dissipation Enforcement of Foreign Judgments Without Prejudice Privilege +1 more

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Parties

Motorola Solutions, Inc.

Applicant/claimant

Motorola Solutions Malaysia SDN, BHD

Applicant/claimant

Hytera Communications Corporation Ltd.

Respondent/defendant

Hytera America, Inc.

Respondent/defendant

Hytera Communications America (West), Inc.

Respondent/defendant

Project Shortway Limited

Respondent

Sepura Limited

Respondent

Procedural Posture

Commercial Freezing Order Application (post Judgment, Chabra Relief) / Ruling on Application for Domestic Freezing Order and Asset Disclosure

Legal Issues

  1. 1 Whether a domestic freezing order should be granted against Hytera and associated entities post-judgment
  2. 2 Whether there is a real risk of dissipation of assets by Hytera
  3. 3 Whether Chabra relief is available against Project Shortway Limited

Ratio Decidendi

The court held that Motorola had demonstrated a real risk of dissipation of assets by Hytera, based on admissible evidence of explicit threats by Hytera's senior management to move assets to frustrate enforcement of a US judgment. The statements made in settlement meetings fell within the unambiguous impropriety exception to without prejudice privilege. Chabra relief was in principle available against Shortway as its assets could ultimately be amenable to enforcement, but the court indicated that appropriately worded freezing orders against Hytera China might suffice. Worldwide disclosure orders were refused for the foreign Hytera entities due to insufficient connection to England and the...

Court Disposition

Domestic freezing order granted against Hytera China (and potentially Shortway) for assets within England and Wales; worldwide disclosure order refused for foreign Hytera entities; disclosure order considered appropriate for Shortway.

Orders

  • Freezing order up to US$345,761,156 against Hytera China’s assets in England and Wales, including shares in Shortway and Sepura, subject to further argument on wording.
  • Disclosure order for Shortway’s assets to enable effective enforcement of the freezing order.