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24 September 2020
Where a potential judgment debtor in onshore proceedings threatens to dissipate its assets, the plaintiff may face a pyrrhic victory with no assets against which to enforce its judgment. Where the defendant is a Guernsey company or has assets in Guernsey, the Royal Court has statutory jurisdiction to grant an injunction in aid of those foreign proceedings, including freezing injunctions to prevent defendants dealing with the relevant assets in Guernsey.
The relevant statutory provision indicates that injunctions in aid of foreign proceedings may be granted in 'exceptional circumstances', which the Court of Appeal has considered simply means that it should exercise caution before granting any such injunction.
The Royal Court will apply American Cyanamid principles. Accordingly, the plaintiff must provide full and frank disclosure to the court and establish that:
An application may be made ex parte on short notice to the defendant or, in exceptional cases, with no notice. A defendant which breaches the order will be in contempt of court.
Ancillary disclosure orders are also available (eg, to provide sworn evidence of assets within the jurisdiction).
For further information on this topic please contact Simon Davies, Sandie Lyne or Kellie Sherwill at Ogier by telephone (+44 1481 721 672) or email (email@example.com, firstname.lastname@example.org or email@example.com). The Ogier website can be accessed at www.ogier.com.
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