Case C-159/02

Gregory Paul Turner

v

Felix Fareed Ismail Grovit and Others

(Reference for a preliminary ruling from the House of Lords)

(Brussels Convention – Proceedings brought in a Contracting State – Proceedings brought in another Contracting State by the defendant in the existing proceedings – Defendant acting in bad faith in order to frustrate the existing proceedings – Compatibility with the Brussels Convention of the grant of an injunction preventing the defendant from continuing the action in another Member State)

Summary of the Judgment

Convention on Jurisdiction and the Enforcement of Judgments – Injunction granted by a court of a Contracting State prohibiting a party from commencing or continuing legal proceedings before a court in another Contracting State – Not permissible – Incompatible with the principle of mutual cooperation underlying the Convention

(Brussels Convention of 27 September 1968)

The Convention of 27 September 1968 on Jurisdiction and the Enforcement of Judgments in Civil and Commercial Matters, as amended by the Convention of 9 October 1978 on the Accession of the Kingdom of Denmark, Ireland and the United Kingdom of Great Britain and Northern Ireland, by the Convention of 25 October 1982 on the Accession of the Hellenic Republic and by the Convention of 26 May 1989 on the Accession of the Kingdom of Spain and the Portuguese Republic, is to be interpreted as precluding the grant of an injunction whereby a court of a Contracting State prohibits a party to proceedings pending before it from commencing or continuing legal proceedings before a court of another Contracting State, even where that party is acting in bad faith with a view to frustrating the existing proceedings.

Such an injunction constitutes interference with the jurisdiction of the foreign court which, as such, is incompatible with the system of the Convention. That interference cannot be justified by the fact that it is only indirect and is intended to prevent an abuse of process by the party concerned, because the judgment made as to the abusive nature of that conduct implies an assessment of the appropriateness of bringing proceedings before a court of another Member State, which runs counter to the principle of mutual trust which underpins the Convention and prohibits a court, except in special cases occurring only at the stage of the recognition and enforcement of foreign judgments, from reviewing the jurisdiction of the court of another Member State.

(see paras 26-28, 31, operative part)

JUDGMENT OF THE COURT (FULL COURT) 27 April 2004 (1)

(Brussels Convention – Proceedings brought in a Contracting State – Proceedings brought in another Contracting State by the defendant in the existing proceedings – Defendant acting in bad faith in order to frustrate the existing proceedings – Compatibility with the Brussels Convention of the grant of an injunction preventing the defendant from continuing the action in another Member State)

In Case C-159/02,

REFERENCE to the Court under the Protocol of 3 June 1971 on the interpretation by the Court of Justice of the Convention of 27 September 1968 on Jurisdiction and the Enforcement of Judgments in Civil and Commercial Matters, by the House of Lords (United Kingdom), for a preliminary ruling in the proceedings pending before that court between

and

on the interpretation of the abovementioned Convention of 27 September 1968 (OJ 1978 L 304, p. 36), as amended by the Convention of 9 October 1978 on the Accession of the Kingdom of Denmark, Ireland and the United Kingdom of Great Britain and Northern Ireland (OJ 1978 L 304, p. 1, and – amended version – p. 77), by the Convention of 25 October 1982 on the Accession of the Hellenic Republic (OJ 1982 L 388, p. 1) and by the Convention of 26 May 1989 on the Accession of the Kingdom of Spain and the Portuguese Republic (OJ 1989 L 285, p. 1),

THE COURT (FULL COURT),,

composed of: V. Skouris, President, P. Jann (Rapporteur), C.W.A. Timmermans, C. Gulmann, J.N. Cunha Rodrigues and A. Rosas, Presidents of Chambers, A. La Pergola, J.-P. Puissochet, R. Schintgen, N. Colneric and S. von Bahr, Judges,

Advocate General: D. Ruiz-Jarabo Colomer,

after considering the written observations submitted on behalf of:

after hearing the oral observations of Mr Turner and of the United Kingdom Government, of Mr Grovit, of Harada Ltd and of Changepoint SA, and of the Commission, at the hearing on 9 September 2003,

after hearing the Advocate General at the sitting on 20 November 2003,

gives the following

‘Is it inconsistent with the Convention on Jurisdiction and the Enforcement of Judgments in Civil and Commercial Matters signed at Brussels on 27 September 1968 (subsequently acceded to by the United Kingdom) to grant restraining orders against defendants who are threatening to commence or continue legal proceedings in another Convention country when those defendants are acting in bad faith with the intent and purpose of frustrating or obstructing proceedings properly before the English courts?’

On those grounds,

THE COURT

in answer to the questions referred to it by the House of Lords by order of 13 December 2001, hereby rules:

Skouris

Jann

Timmermans

Gulmann

Cunha Rodrigues

Rosas

La Pergola

Puissochet

Schintgen

Colneric

von Bahr

Delivered in open court in Luxembourg on 27 April 2004.

R. Grass

V. Skouris

Registrar

President