Offshore Litigation Blog

In Oscar Trustee Limited v MBS Software Solutions Limited, the Eastern Caribbean Court of Appeal confirmed that it has extensive residual powers to police its orders and prevent a party from abusing its process even where the party has made an application for leave to appeal to the Privy Council.

On 31 March 2023, in the case of Re Gatecoin Limited (in liquidation), the Honourable Madam Justice Linda Chan of the Hong Kong Court of First Instance ruled on an application by the liquidators of Gatecoin seeking directions on the characteristics of cryptocurrencies and fiat currencies and whether the cryptocurrencies held should be regarded as being held on trust for Gatecoin’s account holders. The decision brings Hong Kong in line with other common law jurisdictions whose courts have already decided that issue, including England and Wales, New Zealand and the BVI. This is further acceptance by the common law courts that, despite their unusual features, cryptocurrencies and digital assets do not sit outside of the law.

In a much-anticipated decision, Hong Kong’s Court of Final Appeal has ruled on the effect of an exclusive jurisdiction clause on bankruptcy, and by extension winding up, petitions. The decision marks an important turning point in Hong Kong’s insolvency law and, potentially, the common law world beyond.

The jurisdiction & powers of the court at first instance to grant freezing injunctions in aid of intended liquidations or bankruptcy proceedings are examined.

These cases demonstrate the court has a pro-creditor approach to interim payments. Accordingly, the court will usually award an interim payment unless there is a “good reason” for not doing so.

In re US Holdings Ltd (the Company), Chief Justice Hargun in the Supreme Court of Bermuda faced novel issues arising out of a winding up petition filed by a creditor based on a deemed insolvency of the Company coupled with an application to appoint “light touch” provisional liquidators (JPLs) for restructuring purposes.

In the latest decision in the Tulip Trading litigation ([2023] EWCA Civ 83), the English Court of Appeal has held that the question of whether developers of Bitcoin networks owe fiduciary duties to Bitcoin owners is a "serious issue to be tried", leaving the door open for an expansion of the law on fiduciary duties that could trigger a wave of new digital asset claims.

On 25 January 2023, the UK Supreme Court handed down its decision in Barton and others v Morris and another in place of Gwyn Jones (deceased), recounting the key principles that underpin implied terms in contract law and unjust enrichment.

The Supreme Court of the United Kingdom handed down a “momentous” judgment addressing directors’ duties and the extent to which they must act in the interests of creditors.