Money Owed Claim

Corporate Air Dispatch Services Uk V Mbi Aviation Inc (2004)

Where a claimant had failed to place all relevant and material documents before a judge on a without notice application for a freezing order and the defendant had at least an arguable case that the claimant had no immediate cause of action, the freezing order granted would be discharged.

The defendants (M) applied to discharge a freezing order. The claimant (C) provided flight support services to aircraft owners. M owned an aircraft. The parties met and C arranged to supply services to M with M depositing a sum with C for those services.

It became clear that services were being provided that would not be covered by the deposit sum and an employee of C sent M various documents including one entitled "the proposal for contractual document". M changed a number of terms in the document, in particular one providing that invoices were payable on receipt to being payable 30 days after receipt.

Discussions continued as to payment terms. C then obtained a without notice freezing order claiming a sum of money was due and owing and that there was a risk of dissipation of M's assets.

HELD: The order would be discharged. The judge should have been given a full account of the dealings between the parties. C had failed to place all relevant and material documents, particularly that entitled "the proposal for contractual document", before the court. It was doubtful whether the judge would have granted the order if he had had sight of all the relevant documents. Further, it was clear that M had at least an arguable case that there was no immediate cause of action open to C in any event.

Application granted.

Civil Procedure

QBD (HH Judge Mackay) 12/3/2004

LTL 12/3/2004 Extempore (Unreported elsewhere

Document No.: AC9200696