Britcay House Ltd v Internet Fin Servs Ltd

• Jurisdiction: Cayman Islands
• Judge: (Smellie, C.J.)
• Judgment Date: 21 September 2005
• Date: 21 September 2005
• Court: Grand Court (Cayman Islands)

Grand Court

(Smellie, C.J.)

BRITCAY HOUSE LIMITED

and

INTERNET FINANCIAL SERVICES LIMITED

Attorneys: Myers & Alberga for the plaintiff; Broadhurst Barristers for the defendant.

Injunctions-Mareva injunction-purpose

The purpose of a Mareva injunction is to ensure that assets which should be available to meet a plaintiff”s claim are not dissipated so as to deny a plaintiff the fruits of his successful action. The purpose is not to give him priority over injuncted assets, nor to enable him to exert pressure on a defendant to settle (PCW (Underwriting Agencies) Ltd. v. Dixon, [1983] 2 All E.R. 158, applied).

The use of the assets subject to a Mareva injunction to make payment by way of security for the plaintiff”s costs on the defendant”s counterclaim, would constitute an unwarranted dissipation of those assets, exceptional payments for legal expenses allowed out of frozen assets being limited to those...