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Network Telecom (Europe) Limited v Telephone Systems International Inc, High Court, 21 October 2003

27 October 2003
The issues

Without Notice Applications – Ex Parte Applications – Disclosure.

The facts

The Claimant had made a Without Notice Application for service out of the jurisdiction. The parties were involved in two separate proceedings in New York, arising out of a contract between them. The Claimant’s Application was in respect of an action in respect of a demand for payment of sums under the ivoices rendered for goods and services, which were the subject of the proceedings in New York. The New York proceedings were not mentioned in the Application. The Master granted the Application. The Defendant applied to set the Order aside. The Defendant appealed.

The decision

1. The Master had erred in law. The claimant had a continuing duty to make full and frank disclosure until such time as they acted on the Order that they had obtained.

2. In this case, the Claimant should have informed the Court of the New York proceedings before it served the Order that it had obtained.

Appeal allowed.

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