BVI Case Notes: Shell Sheds Light On Westford

In the recent decision of Kenneth Krys and Joanna Lau (as Joint Liquidators of Fairfield Sentry Limited in Liquidation) and Stichting Shell Pension Funds, HCVAP 2011/036, the ECSC Court of Appeal provided some clarification of its decision in Westford Special Situations Fund Limited v Barfield Nominees Limited et al HCVAP No. 14 of 2010.

The main issue at stake in Shell was the question of Shell's submission of its proof of claim in the BVI liquidation and whether this constituted a submission to the BVI jurisdiction in respect of the liquidation process. The Court of Appeal found that it was, and found that Shell ought not to be permitted to pursue Dutch proceedings where, by virtue of its pre-judgment garnishment orders, it might gain a priority over Sentry's general body of creditors having claimed in the liquidation.