1998/194 - Armco Inc and ors v Wingfield and ors [1998] UR 194 (24 September 1998)

1998/194 - Armco Inc and ors v Wingfield and ors [1998] UR 194 (24 September 1998)

The Royal Court failed to provide reasons for refusing variation of injunctions to permit payment of legal fees and disbursements and did not properly consider the applicants' access to justice. The Court of Appeal found that the applicants had discharged the burden of showing no other funds available and that the risk of injustice to the defendants outweighed the risk to the plaintiffs. Leave to appeal was granted, and the injunctions were varied to permit payment of up to £50,000 for legal costs and disbursements, subject to safeguards.

Citation
[1998] UR 194
Parties
Plaintiff: Armco Inc.; Plaintiff: Armco Financial Services Corporation; Plaintiff: Armco Financial Services International Limited; Plaintiff: Armco Pacific Limited; Plaintiff: Northwestern National Insurance Company; Defendant: Roger Thomas Donohue; Defendant: Patrick Henry Rossi; Defendant: Larry Loyd Stinson; Defendant: David Wilmot Atkins; Defendant: Wingfield Limited; Defendant: C. I. Services Holdings Limited; Defendant: NPV Limited; Party Cited: Paul Anthony Brereton Evans; Party Cited: Colin Graham Bird; Party Cited: Abacus Secretaries (Jersey) Limited; Party Cited: Landau Limited
Jurisdiction
Jersey
Judgment Date
24 September 1998
Procedural Posture
Application for Leave to Appeal (civil Injunction Variation) / Court of Appeal, Post Royal Court Refusal of Leave
Outcome
Appeal allowed; injunctions varied to permit payment of legal costs.
Legal Topics
Mareva Injunctions, Proprietary Claims, Constructive Trust, Legal Costs, Variation of Injunctions, Access to Justice
Civil Procedure Equity Injunctions Mareva Injunctions Proprietary Claims Constructive Trust Legal Costs Variation of Injunctions +1 more

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Parties

Armco Inc.

Plaintiff

Armco Financial Services Corporation

Plaintiff

Armco Financial Services International Limited

Plaintiff

Armco Pacific Limited

Plaintiff

Northwestern National Insurance Company

Plaintiff

Roger Thomas Donohue

Defendant

Patrick Henry Rossi

Defendant

Larry Loyd Stinson

Defendant

David Wilmot Atkins

Defendant

Wingfield Limited

Defendant

C. I. Services Holdings Limited

Defendant

NPV Limited

Defendant

Paul Anthony Brereton Evans

Party Cited

Colin Graham Bird

Party Cited

Abacus Secretaries (Jersey) Limited

Party Cited

Landau Limited

Party Cited

Procedural Posture

Application for Leave to Appeal (civil Injunction Variation) / Court of Appeal, Post Royal Court Refusal of Leave

Legal Issues

  1. 1 Whether defendants should be permitted to use enjoined funds to pay legal fees and disbursements
  2. 2 Whether the Royal Court exercised its discretion correctly in refusing variation of injunctions
  3. 3 Whether proprietary claims preclude access to funds for defence costs

Ratio Decidendi

The Royal Court failed to provide reasons for refusing variation of injunctions to permit payment of legal fees and disbursements and did not properly consider the applicants' access to justice. The Court of Appeal found that the applicants had discharged the burden of showing no other funds available and that the risk of injustice to the defendants outweighed the risk to the plaintiffs. Leave to appeal was granted, and the injunctions were varied to permit payment of up to £50,000 for legal costs and disbursements, subject to safeguards.

Court Disposition

Appeal allowed; injunctions varied to permit payment of legal costs.

Orders

  • Leave to appeal granted.
  • Injunctions varied to permit payment from 5th and/or 6th Defendants' assets up to £50,000 for legal costs and disbursements.