Jurisdiction(s):
United Kingdom

Commercial Court: orthodox good arguable case test applies to freezing injunctions; Brownlie jurisdictional analysis rejected; dissipation risk must be inferred from alleged facts, not character (Magomedov v TPG Group)

Published on: 09 January 2024

Published by a LexisNexis Dispute Resolution expert

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Article summary

Magomedov and other companies v TPG Group Holdings (SBS), LP and other companies [2023] EWHC 3134 (Comm) What are the practical implications of this case?

The court unequivocally affirmed the orthodox test for a freezing injunction: a good arguable case suffices, and there is no need for a detailed merits appraisal at the interim stage. It underlined that, even though the same terminology appears, the jurisdictional inquiry serves different purposes from the freezing-order analysis. Moreover, any look at the merits for jurisdiction is directed solely to demonstrating that a jurisdictional gateway is met, rather than embarking on a comprehensive merits evaluation. The court cautioned that transposing the three-stage jurisdiction framework into the context of freezing relief would draw both parties and the court into mini-trials at the interlocutory phase, with the attendant danger of depriving claimants of the protective remedy they seek. In addition, the court considered the proper method for assessing the risk of dissipation of assets, making clear that forming a generalised view about the respondent’s character, or perceived morality, is not an appropriate basis for that assessment. The proper focus remains the risk of dissipation rather than character judgements...

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