James E McCabe Limited and others, In the matter of [2000] NICh 4 (14th April, 2000)

James E McCabe Limited and others, In the matter of [2000] NICh 4 (14th April, 2000)

The applications to strike out the winding up petitions are dismissed because it is not perfectly clear that the claims cannot succeed and alternative remedies may not be adequate given the breakdown of trust in a quasi-partnership context. The application to stay the Wine Inns proceedings is refused because the arbitration clause does not extend to statutory remedies such as winding up or relief under article 452, which are within the exclusive jurisdiction of the court.

Citation
[2000] NICh 4
Parties
Petitioner: Patrick Anthony McCormack; Respondent: Paul Hunt; Respondent: James Oliver Hunt; Respondent: Robert Davis; Company: James E McCabe Limited; Company: Wine Inns Limited; Company: City of Belfast Warehousing Ltd
Jurisdiction
Northern Ireland
Procedural Posture
Company Winding Up Petition / Interlocutory Applications to Strike Out and for Stay
Outcome
applications to strike out and for stay dismissed
Legal Topics
Winding Up on Just and Equitable Grounds, Minority Shareholder Relief, Arbitration Clauses in Shareholder Agreements, Statutory Remedies Under Companies (northern Ireland) Order 1986
Company Law Arbitration Law Insolvency Law Winding Up on Just and Equitable Grounds Minority Shareholder Relief Arbitration Clauses in Shareholder Agreements Statutory Remedies Under Companies (northern Ireland) Order 1986

Case Brief

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Parties

Patrick Anthony McCormack

Petitioner

Paul Hunt

Respondent

James Oliver Hunt

Respondent

Robert Davis

Respondent

James E McCabe Limited

Company

Wine Inns Limited

Company

City of Belfast Warehousing Ltd

Company

Procedural Posture

Company Winding Up Petition / Interlocutory Applications to Strike Out and for Stay

Legal Issues

  1. 1 Whether the winding up petitions should be struck out as an abuse of process or because alternative remedies are available
  2. 2 Whether the proceedings in respect of Wine Inns Limited should be stayed in favour of arbitration under the shareholders' agreement

Ratio Decidendi

The applications to strike out the winding up petitions are dismissed because it is not perfectly clear that the claims cannot succeed and alternative remedies may not be adequate given the breakdown of trust in a quasi-partnership context. The application to stay the Wine Inns proceedings is refused because the arbitration clause does not extend to statutory remedies such as winding up or relief under article 452, which are within the exclusive jurisdiction of the court.

Court Disposition

applications to strike out and for stay dismissed

Orders

  • Applications to strike out the winding up petitions are refused.
  • Application to stay the Wine Inns proceedings under section 9 of the Arbitration Act 1996 is refused.