U.S. Supreme Court Clarifies Service by Mail on Foreign Parties – International Asset Recovery05/26/2017
On May 22, 2017, in Water Splash Inc. v. Menon, The United States Supreme Court addressed the issue whether under the Hague Service Convention service by mail was prohibited. At issue was Article 10 of the Convention that provided if the country of destination does …
British Virgin Islands Widens Scope of Pre-Action, Norwich Pharmacal Orders – International Asset Recovery05/18/2017
A Norwich Pharmacal order enables an applicant to obtain discovery about a wrong that has been committed from a respondent who is not ?mixed-up? in it.
Recent Decision in Ampal Confuses Issue Whether Bankruptcy Trustee Can Avoid Extraterritorial Transfer04/19/2017
In a ruling recently decided by the U.S. Bankruptcy Court for the Southern District of New York, Spizz v. Goldfarb Seligman & Co. (In re Ampal-Am Israel Corp.), 562 B.R. 601 (Bankr. S.D.N.Y. 2017), that court disagreed with other courts both within and outside its …
How the Supreme Court’s Interpretation of Bank Fraud is Useful in Foreign Recoveries02/16/2017
On 12/12/16, the U.S. Supreme Court held that the bank fraud statute does not require proof that the bank suffered a financial loss nor that there was intent for the bank to suffer a loss.
Substantial Activity Through Correspondent Bank in New York Creates Personal Jurisdiction Over Foreign Bank Defendant12/27/2016
Substantial Activity Through Correspondent Bank in New York Creates Personal Jurisdiction Over Foreign Bank Defendant
Caution For Freezing Orders Obtained Without Full Disclosure11/10/2016
A freezing order tying up a defendant?s assets is a powerful tool for claimants in English common law jurisdictions. But, they must be obtained with full and frank disclosure and come with serious ramifications when that does not occur. Typically, an applicant for freezing order …
The Availability of “Backward Tracing” in Jersey Offers Creditors Another Remedy Offshore09/16/2016
One of the major offshore financial centers, Jersey, has been a jurisdiction of choice for those seeking to conceal their ill-gotten assets. But, developing case law offers solace for creditors to recover those illegitimately acquired assets.
The Challenges Of Enforcing Foreign Judgments: The Irish Example08/12/2016
The enforcement of foreign judgments is a challenge, especially if they emanate from the US because there is no automatic recognition. How Ireland treats enforcement efforts of foreign judgments is an excellent example of the challenges faced by plaintiff?s counsel.
U.S. Supreme Court Finds RICO Statute Applies to Activity Offshore06/28/2016
The U.S. Supreme Court on June 20, 2016, inRJR Nabisco Inc. v. European Community, 579 U.S. ___, addressed the application of the RICO statute 18 U.S.C. Section 1961 et seq., to activities outside the U.S. and the injury that must be suffered by private litigants …
Recent Trust Protector Issues Affecting The Enforcement of Trusts in the Channel Islands03/31/2016
The purpose of the appointment of a protector is to monitor the actions of a trustee and to ensure that appropriate action is taken to preserve the trust fund. Protectors are commonly given "positive" powers such as the power to appoint and remove trustees and "negative" powers such as the right to withhold consent to distributions to beneficiaries. The role…
Asset Protection Devices in the British Virgin Islands That Creditors Need to Understand12/30/2015
There are approximately 800,000 companies registered in the British Virgin Islands ("BVI"). BVI entities are used as vehicles for investing in Hong Kong, Singapore and mainland China where anywhere from 40-50% of BVI entities are used. There are three types of funds that can be organized under BVI law-private, professional and public. High net worth individuals are most interested in…
Discovery Obtained Under Section 1782 Is Not Precluded From Use In Subsequent Litigation In the U.S.11/10/2015
The Eleventh Circuit recently addressed an issue of first impression as to whether discovery obtained under 28 U.S.C. Section 1782 could later be used in civil litigation in the United States. InGlock v. Glock, Inc, 797 F. 3d 1002, plaintiff filed a proceeding under 28 …
Australian Freezing Orders Are Valuable Recovery Devices10/27/2015
A substantial portion of the world’s hard and soft commodities are sold and shipped from Australia. Many of the companies involved are based in foreign jurisdictions, but hold substantial assets in Australia in the form of mining licenses or commodity stockpiles. The ability to freeze …
Assessing the Risks of Pre-Suit Discovery in Switzerland09/25/2015
The new Civil Procedure Code (CPC) entitles a party to apply to the court to secure evidence that could later be lost, where a statutory rule provides for the taking of such evidence or where an applicant can demonstrate a legitimate interest. The intent of …
New York Appellate Court Permits Discovery of Banking Information from Branches outside New York09/04/2015
New York branches of foreign banks are not insulated from producing information and documents pertaining to assets of judgment debtors held by the bank outside the US even where the New York branch conducts ?narrow and limited? operations in New York.
A Potential New Recovery Tool for Worldwide Fraud: Backwards Tracing08/31/2015
The doctrine known as ?backwards tracing? operates where victims seek to trace and recover the proceeds of the fraud where no direct connection can be established between the funds lost and the funds found in the hands of the fraudsters…
Seizing Assets Hidden In A Sham Trust07/31/2015
Many problems occur after a trust has been established for many years and poorly managed. As years pass, parties get careless in how they handle the affairs of their trust and then mishandle the operations of the trust for immediate personal needs.
Interim Relief in Cyprus Assists Creditors to Pursue Stolen or Hidden Assets06/26/2015
Cyprus can be a creditor-friendly jurisdiction to enforce or support recovery efforts.
Enforcing Judgments in the United Arab Emirates06/10/2015
Enforcement in the UAE is dependent upon a treaty with the foreign country. Even if the parties agreed that the foreign court has jurisdiction, that may not allow for enforcement if the UAE court would originally have had jurisdiction.
The Basis for Cyprus Trust Popularity for Asset Protection05/29/2015
Cyprus Trusts have become a popular locale for asset protection.
New York District Court Allows Worldwide Discovery from Spanish Bank Located in New York05/14/2015
Recently, the District Court in Vera v. Republic of Cuba, 2015 U.S. Dist. Lexis 32846 (S.D. N.Y. 2015), was confronted with a situation where a judgment creditor sought post-judgment discovery pertaining to the defendant’s foreign accounts “in order to decide whether to seek recognition of …
Third Parties Must Tread Carefully When Implementing Freezing Injunctions Directed Against Them04/30/2015
The Carey and Lloyds decisions point out that third parties subject to a freezing order must not unilaterally implement what is believed to be a practical application of the order without approval by the party obtaining the order and the court.
Identifying the Wrongdoer in Hong Kong before the Lawsuit Commences04/09/2015
Norwich Pharmacal relief is an effective pre-judgment tool for victims in Hong Kong to gather the information necessary to identify the wrongdoers and to eventually freeze their assets.
Enforcement of US Judgments in England Are Not Difficult03/13/2015
Despite the lack of reciprocal arrangements between the US and England, it is possible to enforce a US judgment in the English courts. The procedure to do so is quick and cost-effective. And, the reason to do so is primarily to recover assets to satisfy …
How a Florida District Court Allowed Enforcement of a Judgment against a Nevis Limited Liability Company Membership Interest02/20/2015
Enforcement against foreign assets in a US court has been difficult. However, the Middle District of Florida in Wells Fargo Bank v. Barber, 2015 WL 470589 (M.D. Fla Feb 4, 2015), showed how it is possible.