Post script: Collateral Use and Joinder (Abuse of Process)
Post script: Collateral Use and Joinder (Abuse of Process)
It then becomes necessary to revisit the question of joinder in light of the conclusions on collateral use. Eraaya submitted that the entire strategy to join the claim rather than simply making representations on the Injunction Application was itself a product of the unlawful collateral use and that the claim was hence an abuse of process and liable to be struck out, relying on (i) Miller v Scorey [1996] 1 WLR 1122; (ii) Disclosure (6th Ed) at 19-23 (iii) the commentary in the White Book (2025) at 31.22.1 (p.980): “A claim based on a misused document will, ordinarily, be dismissed as an abuse of the process of the court…”
While this will often be the result, and probably almost inevitably so where there has been deliberate use of a document in breach of CPR 31.12/22, this is a case where (i) I have concluded that the misuse was not deliberate and with knowledge (ii) the claim was not based on the misused documents (they provided the “heads up” as to the existence of a need to make a claim, but not the material for the claim) and (iii) the balance in favour of joinder is clear, not just for the parties but also for the Court. In those circumstances it would be counterproductive and wrong in principle to dismiss the joinder application on this basis.
- 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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