Court clarifies the duty of full and frank disclosure, and the consequences of breaching it (Formal Holdings Ltd and another v Frankland Assets Inc and others)

Article summary

Dispute Resolution analysis: The court, in discharging an order which had been obtained without notice in breach of the claimants’ duty of full and frank disclosure, has provided a useful summary of the principles which govern the application of that duty, and also of the principles the court will apply when deciding whether or not to discharge an order obtained in breach of that duty. In doing so the court, as well as setting out various other useful guidance in relation to the correct practice when making such applications, has reaffirmed the important guiding/supervisory role that parties’ legal advisers will play when their clients are applying for relief from the court on an without notice basis. The decision is thus a helpful primer for practitioners who find themselves in these kinds of situations as part of their practice. Written by Leo Kitchen, senior associate at...