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ARTICLE · 13 MARCH 2016

Bermuda Supreme Court Decision Puts Spotlight On Issues With Bringing Directors' Liability Claims

Greater scrutiny of applications to serve proceedings out of Bermuda is inevitable following a ruling by the island's Supreme Court.

BermudaCorporate/Commercial Law

Greater scrutiny of applications to serve proceedings out of Bermuda is inevitable following a ruling by the island's Supreme Court. The decision also highlights an apparent gap in Bermuda's rules. Chief Justice Ian Kawaley in The Majuro Investment Corporation v Vasile Timis and others [2015] SC (Bda) 87 Civ set aside a previous order granting the plaintiff permission to serve proceedings on overseas defendants under Order 11 rule 1(1)(c) of the Rules of the Supreme Court of Bermuda (RSC) for, among other things, showing no "viable adverse claim" against the so-called anchor defendant.

In reaching his decision, the Chief Justice considered both whether the applicant had met the requirements for permission under that particular gateway of the RSC and whether it had, more broadly, satisfied the court that this was an appropriate case for leave to serve the writ out of the jurisdiction, in the exercise of its discretion. 

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