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Legal Update

Cross-undertakings in damages: how costly can they be?

27 November 2017
Mayer Brown Legal Update
The recent Court of Appeal decision in SCF Tankers Limited (formerly known as Fiona Trust & Holding Corporation) and Others v Yuri Privalov and Others [2017] EWCA Civ 1877 [J49], dismissed an appeal against an award of damages under a cross-undertaking for the losses suffered by a worldwide freezing injunction and security undertaking. It upheld the order that the appellants pay to the respondents $59.8 million in damages, plus interest of $11.04 million.

The decision provides a further illustration (following the 2014 decision of Abbey Forwarding Ltd (in liquidation) v Hone [2014] EWCA Civ 711) of judicial sympathy for the dilemma faced by those respondents served with wrongly-granted freezing injunctions.
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