Case details

Junkanoo Estate Ltd and others (Appellants) v UBS Bahamas Ltd (In Voluntary Liquidation) (Respondent)

Case ID: JCPC 2016/0052

Jurisdiction: The Court of Appeal of the Commonwealth of the Bahamas

Case summary

Issue

Whether the Court of Appeal

  1. erred in refusing to consider the appellants’ appeal against a summary judgment order on the basis that they had failed to first seek leave to appeal from the Supreme Court and
  2. failed to accord due weight to the appellants’ claim that they were not afforded a sufficient hearing before the summary judgment order was made.
Facts

On 23 August 2012, the respondent bank agreed to provide the first appellant, a private investment company, with a credit facility in the sum of US $1,400,000.00. The appellants contend that the respondents were bound as part of that agreement to manage a portion of the loan as an investment on the appellants’ behalf. The loan was secured by means of a mortgage over the family home of the second and third appellants (the officers and directors of the investment company). Following alleged breaches of the loan agreement by the appellants, the Supreme Court on 23 March 2015 ordered the appellants to pay the outstanding sum of money owed under the loan and, in default of payment, to give up vacant possession of their property. This was a summary judgment order. The appellants contend that the Supreme Court failed to consider their defence before making this order. Their defence, as set out in an affidavit dated 23 March 2015 but apparently not considered by the Supreme Court, appeared to be that the respondent failed to manage properly the investment portion of the loan. The appellants applied to the Supreme Court for a stay or variation of the summary judgment order (but not, it would seem, for leave to appeal). The Supreme Court dismissed the application on 8 May 2015 on the basis that the appellants had already filed a Notice of Appeal Motion before the Court of Appeal, rendering the Supreme Court functus. On 2 November 2015, the Court of Appeal acceded to the respondent’s preliminary objection to the Notice of Appeal Motion, holding that the appellants had failed to obtain leave to appeal against the summary judgment order from the Supreme Court, rendering the Notice of Appeal a "nullity". The Notice of Appeal was struck out and the application for a stay dismissed. On 6 June 2016, the Court of Appeal declined to hear renewed submissions on the matter from the appellants on the basis that it had already determined the matter. The appellants seek special leave to appeal to the Privy Council against the Court of Appeal’s decision of 6 June 2016 (and presumably also that of 2 November 2015).

Parties

Appellant(s)

Junkanoo Estate Ltd and others

Respondent(s)

UBS Bahamas (In Voluntary Liquidation)

Appeal

Justices

Lord Mance, Lord Kerr, Lord Sumption, Lord Reed, Lord Hughes

Hearing start date

24 Feb 2017

Hearing finish date

24 Feb 2017