Litigation updates

Austria

Contributed by OBLIN Attorneys at Law
Surprise decision regarding changing case law
  • Austria
  • 17 July 2018

The Supreme Court recently ruled that even settled case law can change. The law prevents the retroactive application only of statutory laws, not court decisions. Therefore, changes in case law also apply retroactively, as there is no ban on the retroactive application of legal knowledge by the courts. The interest in maintaining 'correct' case law overrides earlier protections afforded to those applying the law; thus, it is paramount to be prepared for changes in case law.

Supreme Court's stance on applicability of agreements conferring jurisdiction
  • Austria
  • 03 April 2018

Article 23(1) of the EU Brussels I Regulation sets out minimum requirements for contractual agreements. In particular, the requirements seek to ensure that agreements conferring jurisdiction do not become part of the contract without the knowledge of all of the parties. In a recent case involving the international chemicals industry, the Supreme Court had to consider whether the formal requirements in Article 23(1) had been met.

Supreme Court rules on non-bank loans
  • Austria
  • 23 January 2018

The Supreme Court recently ruled in a case in which a loan was granted without collateral and obviously served to finance the acquisition of the target's shares. Considering that this withdrew considerable funds from the company, putting creditors at risk without any operational justification, the Supreme Court held that this could not be reconciled with the diligence expected from a reasonable manager.

Disclosure of accounts pursuant to Article XLII of Code of Civil Procedure
  • Austria
  • 18 July 2017

Under Article XLII of the Code of Civil Procedure, any party that has a substantive claim for information against another party (which it is suing for performance) has a claim for the disclosure of accounts to mitigate serious problems with quantifying the substantive claim if the accounts could help the claimant and if the respondent can be reasonably expected to provide them.

Supreme Court rules on international jurisdiction in copyright infringement cases
  • Austria
  • 30 May 2017

The Supreme Court recently held that jurisdiction for tort cases under Article 7(2) of the Brussels I Regulation must be interpreted only under the regulation. According to the regulation, torts are illegal acts that ultimately require the defendant to pay damages and are not connected to a contract within the meaning of Article 7(1) of the regulation. According to the court, this jurisdiction includes both the place of the original act and the place where the loss occurred or is about to occur.


Bahamas

Supreme Court evaluates scope of trustees' protection in contentious trust litigation
  • Bahamas
  • 07 August 2018

The Supreme Court recently assessed the protection afforded to trustees by virtue of Section 83 of the Trustee Act 1998, which provides that a trustee cannot be bound or compelled by way of discovery to disclose information and documents about a trust. In Dawson-Damer, a trustee had used Section 83(8) as a basis to refuse a disclosure request. The applicant's case was built primarily on the allegation of a breach of duty (ie, the trustee had failed to consider the applicant's needs).


Brazil

Contributed by TozziniFreire Advogados
Brazilian legal system: civil law sprinkled with common law elements
  • Brazil
  • 17 July 2018

Even though Brazil is a civil law country, the New Civil Procedure Code of 2015 has brought elements of common law jurisdictions to the Brazilian courts. Certain precedents rendered by the Supreme Court and the Superior Court of Justice – the country's highest courts for constitutional and federal law issues, respectively – are now binding on the lower courts.


British Virgin Islands

Reverse engineering: Court of Appeal in rare reversal of findings of fact
  • British Virgin Islands
  • 04 December 2018

The BVI Court of Appeal recently considered the scope of its jurisdiction to interfere with findings of fact made at first instance. This is the second time in 2018 that the court has addressed this issue. While the threshold for intervention is high, the court will intervene on appropriate occasions. The thoroughness of the evaluation of evidence and the credibility of the judge's conclusions at first instance are likely to be pivotal to that determination.

Think before you blink: court halts cross-border requests without consideration
  • British Virgin Islands
  • 23 October 2018

The BVI courts have again stepped in to ensure that proper thought and process is applied to requests made by foreign governmental bodies. In the first case of its kind to successfully challenge the exercise of the attorney general's powers under the Criminal Justice (International Cooperation) Act, the BVI High Court held that the attorney general is required to do more than rubber stamp the requests received under the act.

Stanford v Akers: asking a BVI court to reverse a liquidator's decision
  • British Virgin Islands
  • 09 October 2018

In a recent case, the BVI Court of Appeal addressed standing in the context of applications under Section 273 of the Insolvency Act 2003, whereby an aggrieved person can ask the courts to reverse or vary a liquidator's decision. The court held that, as a shareholder of a company in liquidation, the appellant was an outsider to the liquidation who had no legitimate interest that entitled him to standing under Section 273.

Revisiting costs awards – BVI Court of Appeal varies costs order based on US appeal decision
  • British Virgin Islands
  • 18 September 2018

In Fairfield Sentry Limited (In Liquidation) v Farnum Place LLC the BVI Court of Appeal varied a costs order based on a material change of circumstances – namely, a decision of the US Court of Appeals for the Second Circuit. The BVI court held that the US decision was a "material change of circumstances" which allowed it to vary the costs order by disallowing the costs of Farnum's expert.

Singapore and BVI courts cooperate against cross-border fraud
  • British Virgin Islands
  • 14 August 2018

The Singapore Court of Appeal recently ruled to reinstate and expand a Mareva injunction against fraudster defendants in a conspiracy claim, providing strong support for an earlier decision of the BVI Commercial Court in related proceedings. The decision demonstrates the importance of consistency between courts in multiple jurisdictions in complex cross-border cases.


Canada

Contributed by Dentons
British Columbia court looks past unregistered trading in ordering payment to investment finder
  • Canada
  • 11 December 2018

For many junior resource company executives, deciding whether to engage investment finders can be like considering whether to breathe air. Such companies tend to have early-stage projects that do not warrant debt financing and therefore need equity injections, but lack the profile needed to attract traditional investment dealers. However, working with finders entails navigating the 'exempt' market, which can be hazardous to the ill-informed.

Court of appeal decides WSIB fraud requires wilful act
  • Canada
  • 04 December 2018

The Workplace Safety and Insurance Board (WSIB) recently prosecuted three workers who were receiving WSIB benefits for failing to report a material change with respect to their benefit entitlement. The WSIB argued that it was not required to prove that the workers had intended to defraud the board. However, the Ontario Court of Appeal disagreed and held that to obtain a conviction for failing to report a material change, prosecutors must prove something akin to tax evasion or fraud.

Court hits brakes on duties owed to intoxicated plaintiffs
  • Canada
  • 27 November 2018

The expansion of recognised duties of care owed to intoxicated persons recently met resistance from the Ontario Superior Court of Justice. The plaintiff in the case was one of four intoxicated passengers in a taxi who had been injured after the taxi was involved in an accident. The court centred its decision on the evidentiary record in the case, which established no reasonable basis for the plaintiff's expectation that the taxi driver would ensure that he wore his seatbelt.

Judge convicts and fines man for flying drone near airport
  • Canada
  • 20 November 2018

A Canadian man was recently convicted and fined for operating his drone within 30 feet of the approach path at Yellowknife Airport. This decision clarifies that reckless drone operations near airports and populated areas will be taken seriously by the courts and that significant fines may be levied against recreational pilots.

Supreme Court of Canada to rule on what happens to pension when pensioner disappears into thin air
  • Canada
  • 13 November 2018

The Supreme Court of Canada recently agreed to hear an appeal of a Quebec case concerning the obligations and rights of a pension plan administrator after a pensioner went missing. In their decisions, the lower courts agreed that the university had been correct to continue the monthly pension payments for the five years that the pensioner had been missing because the pensioner was presumed to be alive at the time.