Vol 16 (2019) - Issue 4

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Ashley Dawson-Damer v Lyndhurst Limited [2019] SC (Bda) 8 Civ

Synopsis

The recent decision of the Bermuda Supreme Court in Ashley Dawson-Damer v Lyndhurst Limited confirms the jurisdiction’s position on situations where an application is made for interim relief in aid of foreign proceedings where there are no underlying proceedings before the court in which the relief is being sought.
In Dawson-Damer, The Applicant sought a preservation order in respect of assets held by a Bermuda trustee where the substantive litigation was happening in The Bahamas. The Respondent contended that as there were no underlying proceedings in Bermuda in aid of which the interim relief was sought, and the substantive proceedings were taking place in a foreign jurisdiction, the Court in Bermuda should not exercise its jurisdiction to grant the preservation order, unless it could be shown that judgment arising from the foreign proceedings would be enforceable in Bermuda.
The Chief Justice initially found that the Bermuda Court would have to decline granting the preservation order on the basis that any positive judgment from The Bahamas could not be enforced in Bermuda; accordingly it was not just and convenient to grant the relief sought in aid of the Bahamian Proceedings. However, the Applicant gave an undertaking that she would cause proceedings to be issued in Bermuda and for them to be served on the Defendant in the jurisdiction. Accordingly, the preservation order was granted.