Jurisdiction(s):
United Kingdom

Anti-suit injunctions and Babanaft: English Commercial Court refuses proviso and leaves ultimate beneficial owners' contempt liability open (Renaissance Securities v Chlodwig Enterprises)

Published on: 31 January 2024

Published by a LexisNexis Dispute Resolution expert

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Article summary

Renaissance Securities (Cyprus) Ltd v Chlodwig Enterprises Ltd and other companies [2023] EWHC 3160 (Comm)

What are the practical implications of this case?

The dispute is a noteworthy illustration in cross‑border litigation where anti‑suit themes emerge. It examined the extra‑territorial reach of an anti‑suit injunction granted in support of an agreement by which the parties committed to London‑based arbitration. On one view, if such relief purported to restrain third parties not ordinarily within the English court’s ambit, or otherwise subject to its jurisdiction, the court could be accused of asserting an “altogether exorbitant, extraterritorial jurisdiction”. Conversely, if influential individuals in companies that had accepted English supervision were free to disregard an anti‑suit order, its efficacy and practical force would be greatly undermined. Mr and Mrs Guryev, as the ultimate beneficial owners of the defendant entities, asked the court to include a Babanaft provision, a request the court declined. It left unresolved whether a Babanaft term of this sort is suitable in an anti‑suit injunction, and the extent of any protection the principle might afford to ultimate beneficial owners, whether articulated in an order or otherwise. The appropriate scope of such protection therefore remains unresolved for now...

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