INJUNCTION – ANCILLARY PROCEEDINGS IN BERMUDA SEEKING IDENTICAL RELIEF IN TEXAS
In this decision, the Supreme Court set out the parameters to be applied by a Bermuda court in the exercise of its discretion where an injunction is ancillary to the court where the proceedings are being conducted.
ERG launched proceedings in Harris County, Texas and sought a temporary restraining order against Nabors prohibiting the sale of shares in a subsidiary. The Texas Court refused a temporary restraining order. Two days later, ERG issued proceedings in Bermuda claiming identical relief to that claimed in Texas. ERG sought and obtained, ex parte, an injunction in its favour against Nabors preventing the disposal of the shares. The following week Nabors applied to have the injunction discharged and sought a stay and/or dismissal of the Bermuda proceedings. At the inter partes application the Supreme Court granted Nabors’ application, discharged the injunction and stayed the proceedings. It did so on substantive grounds and on the basis that there had been material non disclosure by ERG when it made its, ex parte, application to the Bermuda court.