LauritzenCool AB v Lady Navigation [2004] EWHC 2607

KEY POINTS

• To obtain a prohibitory injunction, the applicant must establish a prima facie case that damages would be an inadequate remedy and that the balance of convenience favours the granting of the injunction.
• The court analysed the evidence to determine whether there was a real issue to be tried, assessing the likelihood of success of the underlying claim. The court evaluated the balance of convenience by weighing the potential harm to both parties if an injunction were granted or denied.
• Factors such as the financial positions of the parties, availability of alternative options, and potential disruption to the respondent's business were considered in assessing the balance of convenience.

FACTS

• LauritzenCool AB, a Swedish company, entered into a charter party agreement with Lady Navigation, a Greek shipping company, for the transportation of perishable goods.
• A dispute arose between the parties regarding the performance of the charter party agreement.
• LauritzenCool AB sought a prohibitory injunction to prevent Lady Navigation from proceeding with the sale of the cargo.

COMMENTARY

• This case explores the application and scope of prohibitory injunctions in the context of international trade disputes. It highlights the principles and considerations involved in granting a prohibitory injunction in international trade disputes.
• The case underscores the need for prima facie evidence, the inadequacy of damages as a remedy, and a careful analysis of the balance of convenience. It serves as a useful precedent for parties seeking or opposing a prohibitory injunction in similar circumstances.