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Interim Remedies - Principles of Civil Procedure

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KEY QUESTIONS
What role does/should a merits assessment have to play in the granting of an injunction?
When are damages an “inadequate” remedy/when is there a risk of irreparable harm?
What is the Court trying to achieve with interim relief?
Is there any way to introduce precision into the quantification/comparison issue?
How do the principles of equality of arms and access to justice interface with the principles governing the grant of injunctions?
What role does the cross-undertaking play?
What factors are relevant to the balance of convenience?
What principles apply to FOs and SOs? What other factors are relevant?
PROVISIONS
CPR 25

(1) The court may grant (a) an interim injunction; or (f) a ‘freezing injunction’ —

  • (i) restraining a party from removing from the jurisdiction assets located there; or

  • (ii) restraining a party from dealing with any assets whether located within the jurisdiction or not

Senior Courts Act 1981 Section 37 (1) The High Court may by order grant an injunction ... in all cases in which it appears to the court to be just and convenient to do so.
Civil Jurisdiction and Judgments Act 1982 Section 25 (1) The High Court shall have power to grant interim relief where— (a) proceedings have been or are to be commenced in a Brussels Contracting State or a State bound by the Lugano Convention other than the United Kingdom …
INTERIM INJUNCTIONS — GENERAL NOTES (Zuckerman)

Interim Remedies — Protective versus Process Orders — CPR 25.1: extensive list of interim orders broadly contains two types of interim orders:

  • (1) Protective Orders: designed to protect substantive rights (usually rights in issue in the case) during proceedings

  • (2) Process Orders: designed to facilitate access to information/regulate the litigation process in some way

  • NOTE: Distinction of “profound importance”

    • Protective order involves “pre-judgment interference with substantive rights” — ie. injunction could prevent party from doing what was otherwise lawful right to do, and could inflict irreparable harm

    • Cf. Process order involves no such risk — only concerned with conduct of proceedings

    • Thus: Factors considered when exercising jurisdiction to make protective orders are fundamentally different from considerations in process orders

Jurisdiction to grant II relief based on three fundamental principles:

  • (1) Available only for protecting recognisable rights (ie. no II where no likelihood of harm to legal/equitable right belonging to applicant and enforceable by final judgment)

  • (2) Principle of provisionality: function of the jurisdiction is not to decide finally issues in dispute — only to protect rights from irreparable harm pending litigation

  • (3) Principle of restorative compensation: if court finds that party restrained by II prevented from exercising rights, may seek to restore party to pre-II position

The dilemma: II is the “most flexible and far-reaching measure that the courts have at disposal”

  • Court’s powers as wide in reach as extensive in consequences — without hearing on merits, Court may restrain almost any conduct/order almost any action regardless of whether such an order would be available at final judgment

    • Then: Tension between conflicting imperatives: (i) Due process and (ii) need to safeguard rights from harm pending litigation

      • Due process: Should not interfere freedom of action except by due process — entitles Respondent to insist that Applicant first prove entitlement to restraint

        • HOWEVER: During time it takes to comply with due process requirements, rights in dispute may be harmed to point of extinction

      • Inescapable dilemma”: Should Court adhere to due process, which requires rights to be proved before enforced, or should act in the absence of proof?

        • Inevitable risk of harming rights (either claimant or defendant)

  • THUS: Approach to the dilemma: Governing principle in relation to wide discretion: Court must strive to reduce risk of irreparable harm to rights

Principles governing grant of II

  • No universal principle capable of producing satisfactory solution in all situations: acknowledge inevitable possibility that both grant and refusal could result in undue harm

    • Thus: only thing to be done is to minimise possible harmful consequences

      • Then: Method adopted in English law: balance of justice

The BASIC TEST: Balance of Justice

  • Function of II jurisdiction = to safeguard rights from irreparable harm pending litigation

    • Factortame Ltd (No 2): Noting that injustice may be done either way — objective underlying principles by which discretion is to be guided always to ensure that the court chooses course which offers best prospect that eventual injustice will be avoided or minimised.”

    • American Cyanamid: To minimise prospect of injustice: (a) Plaintiff need for protection weighed against (b) Defendant need for protection

  • Balance of justice hinges on two factors:

    • (1) Likelihood of harm occurring; and (2) Magnitude of possible harm.

    • Applicant must satisfy court that:

      • (i) He would be able to establish a right at trial (chances of success on merits); and

      • (ii) Unless Court assists, his right is likely to suffer irreparable harm in the interim.

    • Court must assess: chances of establishing alleged right + probability that right will suffer irreparable harm + magnitude of such harm — from perspective of both Plaintiff and Defendant — strike a just balance between the competing claims

(1) Likelihood of harm occurring (ie. relative chances of success — merits)

  • SEE American Cyanamid; HOWEVER: Weakness— expansive exceptions that undermine justification “discrete but consistent erosion” of ban on merits

    • That merits are relevant considerations now “beyond doubt” — PC interpretation of American Cyanamid in National Commercial Bank Jamaica:

(2) The requirement of irreparable harm

  • Court justified in granting II only if it is necessary to avoid irreparable harm

    • ...

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