Injunction Application
Injunction Application
The Law
There was no real difference between the parties on the applicable principles of law, although there was a predictable difference in emphasis.
Although some of the older authorities suggest that distinct principles apply to the grant of mandatory relief, the more recent cases favour the view that the underlying principles for the grant of interim prohibitory and mandatory injunctions are the same, as explained by Lord Hoffmann in National Commercial Bank Jamaica Ltd v Olint Corporation Ltd [2009] 1 WLR 1405 (PC) [19].
“In both cases, the underlying principle is the same, namely, that the court should take whichever course seems likely to cause the least irremediable prejudice to one party or the other.”
However, as Gee on Commercial Injunctions (7th edn) notes, at 2-041:
“What one can say is that mandatory injunctions are in their nature liable to be more intrusive, result in greater risk in contempt proceedings, result in greater waste of time and money if they are “wrong” and have to be undone, and are more likely to affect the status quo.”
Accordingly the irremediable prejudice test itself drives a conclusion that informs the earlier dicta, namely that:
A court is “far more reluctant” to grant mandatory injunction than it would be to grant a comparable prohibitory injunction;
The court must feel “a high degree of assurance” that at the trial it will appear that the injunction was rightly granted: Shepherd Homes Ltd v Sandham [1971] Ch 340 (Ch) 351;
A court will only grant a mandatory injunction if the case is “unusually strong and clear”, even if it is sought to enforce a contractual obligation.
- Heading
- Introduction
- The Facts
- Engagement of Elara
- The Bridging Loans
- The First Settlement Agency Agreement
- The Offering Circular
- The First Bond Issue
- The Second Bond Issue
- The Dispute Emerges
- The Claim and the Listing of this Hearing
- Injunction Application
- The Parties’ Submissions
- The Merits of Eraaya’s claim: analysis
- The Proprietary Issues
- The Issues
- Express Trust
- Quistclose
- Bare Trust
- Balance of convenience
- Damages not an adequate remedy: Eraaya’s case
- Other Discretionary factors and conclusion
- Joinder Application: Legal Principles
- The issues between the parties
- Analysis
- Collateral Use Application
- The parties’ submissions
- Analysis
- Post script: Collateral Use and Joinder (Abuse of Process)
- Conclusions
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