In Law Debenture Trust Corporation plc v Concord Trust and others – Butterworths Law Direct 12.10.07 the fourth Defendant, to whom bonds had been assigned, filed a complaint in Miami, seeking relief against the Claimant and the third Defendant. Having initially included allegations of fraud against the Claimant, the complaint was amended so as to comprise, inter alia, allegations of breach of fiduciary duty against the Claimant, and allegations of fraudulent misrepresentations against the third Defendant. Anti-suit injunctions were granted against the fourth Defendant. A hearing subsequently took place to consider whether those injunctions should be continued.
The Chancery court held that the jurisdiction to grant an anti-suit injunction restraining foreign proceedings was to be exercised when the ends of justice required it. That might occur when the foreign proceedings were vexatious or oppressive, or when the institution of foreign proceedings was a breach of a binding contract. However, the jurisdiction was one to be exercised with caution.
The amended complaint disclosed no arguable cause of action against the trustee and no arguable claim for recoverable loss arising out of the alleged breaches. It was a claim that was bound to fail and was vexatious. The claim as framed against the third Defendant was also bound to fail.
The anti-suit injunctions would be continued until trial or further order.