1999/56 - Representation of Arthur Anderson Inc [1999] UR 56 (19 February 1999)

1999/56 - Representation of Arthur Anderson Inc [1999] UR 56 (19 February 1999)

The court held that, balancing the interests of creditors and innocent third parties, there was no reason why the undertakings should not be fortified. Therefore, an undertaking in damages was required and to be fortified by payment of £1,000 to the respondent's legal advisors.

Citation
[1999] UR 56
Parties
Representor: Arthur Anderson Inc; First Respondent: The Royal Bank Of Scotland International Limited; Second Respondent: Royal Bank Of Canada (Jersey) Limited; Third Respondent: Standard Chartered Bank (CI) Limited; Fourth Respondent: Loana Investments Limited; Fifth Respondent: Pennine Trustees Limited; Sixth Respondent: First Island Trustees Limited; Seventh Respondent: Abacus Financial Services Limited; Eighth Respondent: Abacus Nominees Limited; Ninth Respondent: Alouski Limited; Tenth Respondent: Moore Stephens International Limited; Eleventh Respondent: Moore Stephens (a firm consisting of the Twelfth and Thirteenth Respondents and Stephen Milson, Dermot Boylan, Simon Young, David Tugman and George Shaw); Twelfth Respondent: James Bowman; Thirteenth Respondent: Clive Barton; Fourteenth Respondent: Kleinwort Benson (Jersey) Limited
Jurisdiction
Jersey
Judgment Date
19 February 1999
Procedural Posture
Representation (application to Join Party) / Interlocutory Application; Reasons for Order
Outcome
Application granted with conditions
Legal Topics
Joinder of Parties, Interim Relief, Undertaking in Damages, Fortification of Undertakings
Civil Procedure Insolvency Bankruptcy Joinder of Parties Interim Relief Undertaking in Damages Fortification of Undertakings

Case Brief

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Parties

Arthur Anderson Inc

Representor

The Royal Bank Of Scotland International Limited

First Respondent

Royal Bank Of Canada (Jersey) Limited

Second Respondent

Standard Chartered Bank (CI) Limited

Third Respondent

Loana Investments Limited

Fourth Respondent

Pennine Trustees Limited

Fifth Respondent

First Island Trustees Limited

Sixth Respondent

Abacus Financial Services Limited

Seventh Respondent

Abacus Nominees Limited

Eighth Respondent

Alouski Limited

Ninth Respondent

Moore Stephens International Limited

Tenth Respondent

Moore Stephens (a firm consisting of the Twelfth and Thirteenth Respondents and Stephen Milson, Dermot Boylan, Simon Young, David Tugman and George Shaw)

Eleventh Respondent

James Bowman

Twelfth Respondent

Clive Barton

Thirteenth Respondent

Kleinwort Benson (Jersey) Limited

Fourteenth Respondent

Procedural Posture

Representation (application to Join Party) / Interlocutory Application; Reasons for Order

Legal Issues

  1. 1 Whether Kleinwort Benson (Jersey) Limited should be joined as a respondent
  2. 2 Whether Arthur Anderson Inc. should provide and fortify an undertaking in damages and costs as a condition for interlocutory relief

Ratio Decidendi

The court held that, balancing the interests of creditors and innocent third parties, there was no reason why the undertakings should not be fortified. Therefore, an undertaking in damages was required and to be fortified by payment of £1,000 to the respondent's legal advisors.

Court Disposition

Application granted with conditions

Orders

  • Kleinwort Benson (Jersey) Limited joined as Fourteenth Respondent
  • Arthur Anderson Inc. to provide an undertaking in damages in favour of Kleinwort Benson