Importance Of English Law

Question 1

Outline significance of English law to offshore practitioners

Answer 1

Offshore centres have legal systems based on principles of English Law

I.e - crown dependencies have own legal system however statutory provisions model English Law/ close relationship

Significant for judicial Precedent as English cases referenced by courts

Local laws differ offshore to accommodate requirements specific to that jurisdiction

Judicial Committee of privy council = highest level of court appeal offshore / power to reserve the decision of lower courts

Question 2

Outline the development of English Law

Answer 2

Two historical sources of Law are Common Law & Equity

Development
-dissatisfaction of Common Law / historical beginnings of equity resulted in conflict between legal systems of law

• Judicature Acts 1873 & 1875 created unified admin/ fusion
• Modern equity developed since 1873

Question 3

Outline development of Common Law

Answer 3

Law of the land

Embodied concept of judicial precedent & over years comprehensive at of rules developed

Rigid system

Damages Remedy monetary compensation for losses)

-same remedy didn’t amount to justice / unfairness

Petitions to King / delegated power to court of Chancery

Question 4

Outline development of Equity & new remedies created

Answer 4

Court of Chancery developed new legal system / split legal & equitable rights

Introduced concept of fairness & new remedies rather than adhering to letter of the law & focusing on procedural methods

Developed in parallel with common law

Remedies;

• injunction (stop someone doing something)
• recession (unwind)
• mareva injunction (freezing order of assets)
• specific performance (unique/ rare assets)

Question 5

Outline relationship between common law & Equity

Answer 5

Common law applies automatically

However court has discretion to apply rules of Equity & grant equitable remedies if sees fit

Where Equity and common law conflict = Equity will prevail

Question 6

Outline distinction between common law & civil law offshore jurisdictions

Answer 6

Offshore centres can we civil law or common law

Civil Law - system developed & based on Roman Law

Codified system / laws set out in detailed statutory code

Judges implementing civil law only regard code & not the outcome of previous cases because doctrine of judicial precedents doesn’t form part of legal system

Civil law jurisdictions don’t usually recognise division between legal & equitable ownership / therefore not always possible to create trusts = concept less understood & doesn’t appeal clients dealing there

Some civil law jurisdictions endeavoured to make it attractive to admin trusts there / hauge convention ratified by Switzerland

Common law jurisdictions increase offerings of products (foundations) as alternative to trusts

Liechtenstein have hybrid system of law that follows mixture