ASI RELIEF PURSUANT TO THE VEXATIOUS AND OPPRESSIVE JURISDICTION
ASI RELIEF PURSUANT TO THE VEXATIOUS AND OPPRESSIVE JURISDICTION
The legal principles
I gave a summary of the applicable principles for granting ASI relief on this basis in JP Morgan, which I repeat here, but supplement by reference to additional authorities referred to in this case.
The principles for the granting of anti-suit relief on the vexation and oppression basis are summarised by Males LJ in SAS Institute Inc v World Programming Ltd [2020] EWCA Civ 599 at [90]-[91], [103] and [108] and in JP Morgan I précised that summary and principles derived from other authorities cited in that case as follows:
The basic principle is that the jurisdiction is to be exercised "when the ends of justice require it".
Established categories of case where an injunction may be appropriate (which may overlap) include cases where an injunction is necessary to protect the jurisdiction of the English court and cases where the pursuit of foreign proceedings is regarded as vexatious or oppressive, but the jurisdiction is not confined to these categories and must be applied flexibly.
Great caution must be exercised before such an injunction is granted, at any rate in cases where the injunction is not sought in order to enforce an arbitration or exclusive jurisdiction clause, because of the requirements of comity.
When an anti-suit injunction is sought on grounds which do not involve a breach of contract, comity, telling against interference with the process of a foreign court, will always require careful consideration.
Comity requires that in order for an anti-suit injunction to be granted, the English court must have "a sufficient interest" in the matter in question. Often that sufficient interest will exist by reason of the fact that the English court is the natural forum for the determination of the parties' dispute. In a case where the injunction is sought in order to protect the jurisdiction or process of the English courts, the existence of a sufficient interest will generally be self-evident.
The categories of factors which may amount to vexation and oppression are not closed (Elektrim SA v Vivendi Holdings1 Corp [2008]EWCA Civ 1178, [83]).
At [146], I added my own observation that even in cases in which injunctive relief is not sought on a contractual or quasi-contractual basis, the fact that the foreign proceedings involve the circumvention of an agreement for arbitration with an English seat, or an English EJC, can itself be relevant in determining whether the commencement and pursuit of the foreign proceedings is vexatious and oppressive, as well as establishing the necessary "sufficient interest" of the English court to act.
Relying on a passage in Deutsche Bank AG v Highland Crusader Offshore Partners LP [2009] EWCA Civ 725, [50], JPM submitted that it must be the fact that the proceedings are being pursued in the foreign court, rather than the fact of the allegations advanced in the proceedings, which is vexatious and oppressive. In my view, the distinction between the place of the proceedings and the claims brought is not an easy one to draw, and I doubt its general application: for example, when foreign proceedings are said to be vexatious and oppressive because they seek to re-litigate matters determined in the English proceedings, it is surely the fact of re-litigation rather than where the proceedings are taking place which is the true vice.
JPM also referred to the following factors highlighted by Toulson LJ in that same paragraph in Deutsche Bank:
The principle of comity requires the court to recognise that, in deciding questions of weight to be attached to different factors, different judges operating under different legal systems with different legal policies may legitimately arrive at different answers, without occasioning a breach of customary international law or manifest injustice, and that in such circumstances it is not for an English court to arrogate to itself the decision how a foreign court should determine the matter.
The stronger the connection of the foreign court with the parties and the subject matter of the dispute, the stronger the argument against intervention.
They also relied on the enhanced burden of showing that proceedings in a foreign court are vexatious and oppressive in a so-called “single forum” case. That principle is summarised by Trower J in Bourlakova v Bourlakov [2024] EWHC 929 (Ch), [46]-[47] in the following terms:
“Single forum cases” are cases "when the cause of action relied on in the foreign court cannot be advanced in England, and there is no cause of action available (as a matter of English domestic law or the law applicable under its choice of law rules) to the claimant to allow him to win before the English courts …".
Particular caution is required before granting ASI relief in this context. As the only possible forum is the foreign forum, the risk of injustice is very real, because the issue for the court is not in which forum the claims should proceed, but rather whether they should proceed at all.
The availability of relief in the foreign court on a basis which it is easier to satisfy than analogous relief in this jurisdiction will (at least in some cases) be analogous to a "single forum" case, requiring a similar level of caution.
There are two further paragraphs I should refer to. At [49], Trower J said that “commencing proceedings abroad which raise issues that are already subject to proceedings in England is also capable of amounting to vexatious or oppressive conduct, but that is not necessarily the case” and that “there is no presumption that a multiplicity of proceedings is vexatious, and that proceedings are not to be regarded as vexatious merely because they are brought in an inconvenient place”.
At [50], he referred to the need “to strike an appropriate balance between the possible injustice to the parties depending on whether the anti-suit injunction is granted or refused”, and stated that “in carrying out that exercise, only credible and legitimate advantages are to be given weight, because it is not unjust to deprive a party to foreign proceedings of illegitimate or theoretical advantages or ones which are hopelessly or cynically invoked.”
Where, as here, the reason why Greece is said to be the “only” forum is because it will not give effect to the parties’ agreement, freely entered into by JPM and enforceable in this jurisdiction and under the applicable law of the SHA, that the Directors should not be liable, I rather doubt that the party seeking to assert the liability it has agreed should not exist can avail themselves of the higher threshold for granting a “single forum” injunction. In any event, I have assumed that WRL and the Directors only need to meet the lower test.
- Heading
- Introduction
- THE BACKGROUND
- The Greek Proceedings
- The Commercial Court proceedings
- CLAIMS FOR FIRST PARTY CONTRACTUAL ASI RELIEF
- Clause 42 of the SHA
- Clause 33.3 and 38.5
- The Deed of Covenant executed by Mr Karonis
- QUASI-CONTRACTUAL ASI RELIEF
- ASI RELIEF ON THE THIRD PARTY CLAIM OBLIGATION BASIS
- ASI RELIEF PURSUANT TO THE VEXATIOUS AND OPPRESSIVE JURISDICTION
- The matters relied upon
- Subjective vexation and oppression
- Circumvention of the EJC
- The alleged lack of merit in the Greek Proceedings
- The alleged attempt to circumvent clause 33.1
- The remaining points
- Sufficient interest
- THE JURISDICTION AND DECLARATION ISSUES
- Service out of the claim to enforce the Clause 33 Contract
- Vexatious and oppressive ASI relief
- The claims for declarations
- Conclusions
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