A litigant may require a disclosure order against a non-party in proceedings to enable it to build its case against a suspected wrongdoer.The specialist commercial lawyers at Bahamas law firm ParrisWhittaker are highly experienced in advising on disclosure issues in commercial disputes.
A ruling1 from the BVI commercial court has provided useful clarity on the role of Norwich Pharmacal orders against ‘innocent parties’.
A Norwich Pharmacal Order (NPO) is a court order that obliges an innocent individual or corporation to disclose documents and or information that may help to identify another party who is suspected of wrongdoing, such as fraud or money laundering.
What happened in this case?
In this case, the BVI commercial court made a NPO ordering disclosure from a number of registered agents, a former voluntary liquidator and a professional nominee director of the BVI companies which were suspected of wrongdoing. Two of those companies had gone through voluntary liquidation.
The BVI company requesting the order had already secured judgments in Russia against two individuals in Russia. At issue was whether an NPO could be ordered as against a voluntary liquidator and professional nominee director.
The court allowed the application on the basis that in undertaking its function as voluntary liquidator, a liquidator is innocently involved in the company’s affairs and likely to have the information required by the applicant to pursue its case for enforcement against the suspected wrongdoer.
An order for disclosure was also made against the former director of the companies for the same reason. By their very nature, directors are likely to have a significant number of documents about a company’s affairs.
How can we help?
The ruling clarifies the range of individuals and companies against whom Norwich Pharmacal orders can be made to enable a judgment creditor to pursue enforcement proceedings against a suspected wrongdoer.
While we recognise that those subject to a Norwich Pharmacal order will most likely incur costs and time in complying with the order, they should be reassured that being hit with such an order is not an inference of any wrongdoing on their part.
We advise and represent businesses across all types of disputes, including where fraud and disclosure issues arise. Where a court application for disclosure seems inevitable, we can talk through the issues with you strategically to ensure your interests are protected.
It is therefore crucial to take early advice from the experts. Contact the experienced commercial disputes lawyers at ParrisWhittaker for strategic assistance and representation. 1
