Reclaim Limited

2019 Update

Having considered the submissions and the evidence presented by both parties, on 14 October 2019, the learned Judge made the following findings: 


  1. The Claims sought in the Part 7 Claim are breach of trust, breach of contract, damages, unjust enrichment – all of which are ordinary claims. As such, it cannot be brought in Gibraltar and must be brought in Spain; 
  2. For the Company Action, as the claims are insolvency related claims that derive directly or are closely connected with the original proceedings, the Gibraltar court has the jurisdiction to deal with applications for leave to disclaim the contracts and for an order for the transmission of funds pursuant to section 252 of the Insolvency Act. The provisions of the Act have extra-territorial effect and thus, the jurisdiction of the Gibraltar court is not outset by the contract between Reclaim and LAP. As such, the liquidators are allowed to continue with their claim for termination of the contract, disclaimer and the relief sought pursuant to section 252 of the Act and LAP and/or Mr. Garcia must comply with the order for disclosure made by Jack J on 9 May 2017. 


LAP and Mr. Garcia subsequently sought leave to appeal and stay pending the appeal on the basis that as jurisdiction is being challenged, the court, in refusing the stay would be forcing the appellant to submit to the jurisdiction. 

On 29 October 2019, the learned Judge granted LAP and Mr. Garcia’s leave to appeal and their application for stay. As such, LAP and/ or Mr. Garcia need not make disclosure of the accounts relating to Reclaim pending the determination of the same by the Court of Appeal. 

We are now waiting for LAP and Mr. Garcia’s appeal to be determined by the Court of Appeal.



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