SGS 9: Interim Injunctions Flashcards

1
Q

What is an interim injunction?

A
  • a temporary injunction granted before trial. It usually lasts until the parties’ rights and obligations are decided at trial.
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2
Q

What is a discretionary interim injunction?

A
  • court has complete discretion even if all requirements met
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3
Q

What is an equitable interim injunction?

A
  • court must consider equitable principles e.g. Clean hands, delay, not acting in vain.
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4
Q

Why would a without notice application be given?

A

Where giving notice would enable the defendant to take steps to defeat the purpose of the injunction or where there is no time to give notice.

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5
Q

WITHOUT NOTICE application - what is Applicants duty to the court?

A
  • Duty to investigate the facts & fairly present evidence on which he relies.
  • Must disclose fully to the court all matters relevant to the application, including those matters which may be adverse to it.
  • Must explain why notice was not given.
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6
Q

WITHOUT NOTICE application - what should A provide to R after the hearing?

A
  • The application notice, evidence in support and draft order
  • along with a note of what took place at the without notice hearing.
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7
Q

WITHOUT NOTICE application - what must A give an undertaking to do?

A
  • Undertaking to serve on the respondent the relevant documents (see flowchart above).
  • Also an undertaking as to damages and costs
  • (e.g. to 3P and to compensate R for any loss caused by a wrongly-granted injunction).
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8
Q

What are the 6 advantages of injunctions?

A
  1. Good for high stakes litigation
  2. Freezing injunction: Ensures that there is a ‘pot of assets’ to enforce against if successful at trial
  3. Prohibitory injunction: Maintains your client’s position pending final resolution of the parties’ dispute at trial
  4. Psychological effect on R – serious restrictions and inconvenience – affects creditworthiness of R.
  5. May promote settlement
  6. Breaching the terms of an injunction may result in the respondent facing contempt of court proceedings. This is punishable by a fine and/or imprisonment.
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9
Q

What is an interim prohibitory injunction?

A
  • CPR 25.1(1)(a)
  • A court order prohibiting a person from doing something.
  • To protect a legal position until a full determination of the issues can occur.
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10
Q

Which balance needs to be achieved with interim prohibitory injunctions?

A

Must be a balance between need to reduce the risk of harm to lawful rights pending litigation and the imperative of impartiality which argues for non-interference prior to final judgment.

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11
Q

What are the American Cynamid guidelines for IPI’s?

A

Claim not frivolous / vexatious

Would damages be adequate remedy for injured party?

Balance of convenience
Status quo ante?

Merits of case

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12
Q

What are the 4 exceptions where the American Cynamid guidelines may not apply?

A
  1. Restraint of trade cases
  2. Final disposal of claim
  3. No defence
  4. Privacy claims
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13
Q

What are freezing injunctions? What is their purpose?

A
  • Definition in CPR 25.1(1)(f)
  • Stops R from removing assets within the jurisdiction out of the country,
  • or from dealing with assets whether within the jurisdiction or not.
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14
Q

When are freezing injunctions usually applied?

A
  • Usually applied for without notice because with notice would defeat the point.
  • Freezes the individual, not the assets.
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15
Q

What is the leading case for freezing injunctions?

A
  • Mareva v International Bulk Carriers = guidelines
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16
Q

What are the 4 guidelines for Freezing Injunctions from the Mareva v International Bulk carriers case?

A
  1. Substantive cause of action justiciable in England & Wales
  2. Good arguable case
  3. Grounds for believing that D has relevant assets within the jurisdiction
  4. Real risk of dissipation / removal / disposal
17
Q

Mareva: Substantive cause of action justiciable in England & Wales

A
  • i.e. not a cause of action in itself…must relate to existing proceedings.
18
Q

Mareva:

Good arguable case?

A

· Doesn’t have to be a 50+% chance of success (Ninemia Maritime v Trave)
· C must make a full & frank disclosure of all material matters, and should fairly state the points that could be made by D against his claim (Third Chandris v Unimarine)

19
Q

Mareva:

Real risk of dissipation / removal / disposal

A

· Evidence of dishonesty, incidents of debt default, misappropriation, evidence that respondent has started to remove or dispose of assets? Where is R located e.g. tax haven?
· Assessed objectively – reasonable man – (Derby & Co v Wheldon)