Case details

UBS AG New York and others (Appellants) v Fairfield Sentry Ltd (In Liquidation) (Respondent) (British Virgin Islands)

Case ID: JCPC 2018/0082

Jurisdiction: The Court of Appeal of the Eastern Caribbean Supreme Court (British Virgin Islands)

Case summary

Issue

Was the judge wrong not to grant an anti-suit injunction against proceedings brought by the respondents in the US purportedly under s.249 of the BVI Insolvency Act?

Facts

The respondents were feeder funds through which the appellants invested in Bernard Madoff’s Ponzi scheme. At various times over several years before December 2008, the appellants redeemed some or all of their shares in Fairfield Sentry Limited. After the Ponzi scheme was discovered, and Madoff was arrested on 11 December 2008, the respondents’ sought to recover some of the redemption payments. Their attempts to do so in the BVI were discontinued, but they now seek to do so in the US (in respect of payments which are different from those subject to the original BVI proceedings and are worth more than USD $6bn). In the US proceedings they rely on, among other things, s.249 of the BVI’s Insolvency Act, which permits "the court" to set aside voidable transactions. The appellants sought an anti-suit injunction in the BVI against the US proceedings. They argue that s.249 only grants power to the BVI court.

Parties

Appellants
  1. UBS AG New York
  2. UBS AG Zurich
  3. UBS Jersey Nominees Ltd
  4. UBS (Luxembourg) SA
  5. UBS Deutschland AG
  6. MUFG Alternative Fund Services (Cayman) Ltd
  7. UBS (Grand Cayman) Ltd
  8. MUFG Alternative Fund Services (Ireland) Ltd
  9. UBS Zurich
Respondent

Fairfield Sentry Ltd (In Liquidation)

Appeal

Justices

Lord Reed, Lord Hodge. Lord Briggs, Lady Arden, Lord Kitchin

Hearing start date

25 Feb 2019

Hearing finish date

26 Feb 2019

Watch hearing
25 Feb 2019 Morning session Afternoon session
26 Feb 2019 Morning session