ARTICLE
10 June 2020

Court Of Appeal Rules Black Swan Wrongly Decided

W
Walkers

Contributor

Walkers is a leading international law firm which advises on the laws of Bermuda, the British Virgin Islands, the Cayman Islands, Guernsey, Ireland and Jersey. From our 10 offices, we provide legal, corporate and fiduciary services to global corporations, financial institutions, capital markets participants and investment fund managers.
In a judgment handed down on Friday 29 May 2020 in Broad Idea International Limited - v - Convoy Collateral Limited (BVICMAP 2019/0026),
British Virgin Islands Litigation, Mediation & Arbitration

In a judgment handed down on Friday 29 May 2020 in Broad Idea International Limited - v - Convoy Collateral Limited (BVICMAP 2019/0026), the Eastern Caribbean Court of Appeal (Pereira CJ, Blenman, Michel JAA) has ruled that the BVI Court cannot grant a free standing freezing injunction against a BVI company where that company is not a party to substantive proceedings either in the BVI or elsewhere. In so deciding, the Court of Appeal has determined that the case of Black Swan Investments ISA - v - Harvest View Limited (Claim No BVIHCV 2009/399) ("Black Swan") was wrongly decided. The Court of Appeal also ruled that the assets of a BVI company are not to be considered the assets of its shareholders such that the company's assets may be subject to a freezing injunction.

Walkers Partners Rosalind Nicholson and Murray Laing, along with Associate Catherine O'Connell, acted for the successful Appellant, Broad Idea International Limited. Walkers instructed Richard Morgan QC of Maitland Chambers.

Originally published Walkers, May 2020

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