Financiera Avenida SA v Shiblaq
| Jurisdiction | England & Wales |
| Judgment Date | 14 January 1991 |
| Date | 14 January 1991 |
| Court | Court of Appeal (Civil Division) |
Court of Appeal
Practice - cross-undertaking - applying contract law
Where a plaintiff gave a cross-undertaking in damages on the grant of aMareva injunction, preventing the defendants' dissipation of assets, ordinary principles of the law of contract applied both as to causation and to quantum when it was sought to enforce the cross-undertaking.
The Court of Appeal (Lord Justice LLoyd, Lord Justice Stocker and Sir George Waller) so held on November 7 when dismissing an appeal by the plaintiff company, Financiera Avenida SA, against the order of Mr Justice Saville made on October 21, 1988 on an inquiry as to damages, awarding damages to Mr B M Shiblaq, the defendant, on a cross-undertaking given by the plaintiffs in respect of a Mareva injunction granted to them. The appeal was dismissed on the issues of causation and quantum but the case was remitted to the judge to give further consideration to the exercise of his discretion.
LORD JUSTICE LLOYD said that two questions arose whenever there was an application by a defendant to enforce a cross-undertaking in damages. The first was whether the undertaking ought to be enforced at all. That depended on the circumstances in which the injunction had been obtained, the success or otherwise of the plaintiff at the trial, the subsequent conduct of the defendant and all the other circumstances of the case.
If the first question was answered in favour of the...
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