BRITISH VIRGIN ISLANDS

HIGH COURT

PROCEDURE – BVI – STRIKE OUT – PROPER PLEADING OF “WILLFUL DEFAULT”

The issue in this case was whether CITCO Trustees BVI Limited (CITCO) was entitled to summary judgment under CPR 15.2(a) dismissing the claim of the Appleby Corporate Services (BVI) Limited (“Appleby”) on the ground that Appleby had no reasonable prospect of succeeding on its claim for breach of trust; or alternatively for an order under Civil Procedure Rules (“CPR”) 26.3(1)(b) or (c) striking out the statement of claim on the grounds that it does not disclose any reasonable ground for bringing the claim or is an abuse of process. The allegation against CITCO was that it failed to monitor the performance of portfolio in respect of which the funds over which it acted as Trustees were administered and deliberately or recklessly and negligently failed to apprise the beneficiaries of underperformance of the investments which resulted in a net reduction in value of the assets of some US$5.6 million.

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