Interim Injunctions and Freezing Orders – St. Kitts and Nevis, Grenada and Member States Subject to the Eastern Caribbean Court
In this expert focus article, Dia Forrester, partner at Joseph Rowe in St. Kitts and Nevis, looks at the new Practice Direction which brings about significant changes in the region’s Civil Procedure Rules, affecting the method via which litigants may seek an interim injunction, a freezing order and/or a search order.
Dia Forrester
View firm profileAs a complement to the amended Civil Procedure Rules released in July 2023, Practice Direction No 4 of 2023 gives the procedure for applying to the court for an interim injunction, a freezing order and a search order (“Interim Orders”). This Practice Direction is particularly important in the commercial aspects of practice where the High Court is frequently moved to obtain Interim Orders on an urgent basis.
These new practice directions are only applicable to cases where giving notice would facilitate a respondent taking steps to defeat the purpose of the Interim Order or where an applicant had no time to give notice to prevent a potential wrongful act.
All applications for Interim Orders must state the nature and terms of the order being sought, the grounds in support and proposed date, time and place for the hearing, with at least three days’ notice being given unless the court directs otherwise. Applications must be supported by evidence on affidavit setting out the facts in support of the application and all material facts which should be drawn to the attention of the court. If an affidavit cannot be presented, a witness statement may be used, but subject to the court’s discretion to accept it. That aspect of the Practice Direction is in keeping with the general learning relating to how litigants seek injunctive relief, as an applicant must present cogent evidence to support their application; likewise, failing to disclose material facts inclusive of facts adverse to an applicant may prove fatal as a matter progresses.
An applicant can continue to move the court for Interim Orders where a claim form has already been filed or where a claim form has not yet been filed. If a claim form has not been filed, the application must expressly state the “Claimant and Defendant in an Intended Action”. If the application is urgent, it must be accompanied by a Certificate of Urgency which step is the court’s adoption of what emerged in the last ten years informally as best practice when seeking to engage the court urgently. The default position for hearing urgent applications is that there must be a hearing, but the court has a discretion to deal with urgent applications on paper, or by telephone or by other electronic means. Further, the Practice Directions stipulate that there must be at least a two-hour period between filing and the hearing of an urgent application. It is well known that the Eastern Caribbean Court utilises quite sophisticated technology for the filing of documents and hearing of matters virtually, which enhances its placement as an attractive jurisdiction for doing business, particularly in the jurisdictions with frequent complex commercial matters such as Nevis, BVI and Anguilla.
The court has introduced standard forms for all Interim Orders to be utilised with modifications being made as may be necessary by judicial officers and litigants, which is helpful in streamlining what is applicable on a case-by-case basis. With respect to interim injunctions and freezing orders, those features include, amongst other factors, the following:
- any Interim Orders being granted must state clearly what the respondent must do or not do and the length of time the order remains in effect;
- the order should contain an undertaking in damages to cover any losses sustained by the respondent due to the Interim Order;
- an undertaking to serve all filed documents if the application was made without notice;
- directions for filing a claim if no claim was filed;
- penal notice giving consequences for non-compliance with the order as may be applicable;
- respondents can apply to vary or discharge the order on notice to the applicant’s legal practitioner;
- the list of assets affected by the prohibition in a freezing order and any applicable limitations on the prohibitions;
- the role of the banks, and parties other than an applicant in relation to the order; and
- the jurisdictional scope of the order and its effect on assets outside of the jurisdiction.
Collectively, these Practice Directions encapsulate what has been best practice within the Eastern Caribbean and mandate that those best practices be adopted, which only enhances the ability of all within the legal profession to access and receive justice.
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