Hard Rock Limited and Anor v HRCKY Limited [2020] JRC 079 (05 May 2020)

Hard Rock Limited and Anor v HRCKY Limited [2020] JRC 079 (05 May 2020)

The plaintiffs failed to comply with the discovery order of 16 December 2019 in a serious and unjustified manner, particularly by adopting an unduly narrow approach to discovery and failing to conduct adequate searches. However, given the seriousness of the allegations and the quantum at stake, the plaintiffs are granted one final opportunity to comply with detailed directions for discovery. If they fail, judgment will be entered on the defendant's counterclaim and the plaintiffs' answer will be struck out automatically. Plaintiffs are ordered to pay indemnity costs for the application.

Citation
[2020] JRC 079
Parties
First Plaintiff: Hard Rock Limited; Second Plaintiff: Hard Rock Café International (STP) Inc; Defendant: HRCKY Limited
Jurisdiction
Jersey
Judgment Date
05 May 2020
Procedural Posture
Civil / Interlocutory Application for Judgment on Counterclaim Due to Alleged Non Compliance With Discovery Order
Outcome
Application for immediate judgment on counterclaim refused; final opportunity for plaintiffs to comply with discovery granted; indemnity costs awarded against plaintiffs.
Legal Topics
Discovery, Sanctions for Non Compliance, Fraudulent Misrepresentation, Costs
Civil Procedure Commercial Law Discovery Sanctions for Non Compliance Fraudulent Misrepresentation Costs

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Parties

Hard Rock Limited

First Plaintiff

Hard Rock Café International (STP) Inc

Second Plaintiff

HRCKY Limited

Defendant

Procedural Posture

Civil / Interlocutory Application for Judgment on Counterclaim Due to Alleged Non Compliance With Discovery Order

Legal Issues

  1. 1 Whether the plaintiffs complied with the court's discovery order of 16 December 2019
  2. 2 Whether the breach of the discovery order was serious or significant
  3. 3 Whether there was good reason for the breach

Ratio Decidendi

The plaintiffs failed to comply with the discovery order of 16 December 2019 in a serious and unjustified manner, particularly by adopting an unduly narrow approach to discovery and failing to conduct adequate searches. However, given the seriousness of the allegations and the quantum at stake, the plaintiffs are granted one final opportunity to comply with detailed directions for discovery. If they fail, judgment will be entered on the defendant's counterclaim and the plaintiffs' answer will be struck out automatically. Plaintiffs are ordered to pay indemnity costs for the application.

Court Disposition

Application for immediate judgment on counterclaim refused; final opportunity for plaintiffs to comply with discovery granted; indemnity costs awarded against plaintiffs.

Orders

  • Plaintiffs to conduct comprehensive discovery as specified and file affidavit by 26 June 2020.
  • If plaintiffs fail to comply, judgment in default will be entered on the defendant's counterclaim and plaintiffs' answer will be struck out automatically.