Interim injunction granted in refusal to supply case

Dervla Broderick

On 5 November 2013, the High Court granted applications for interim injunctions in two cases concerning an alleged refusal to supply “money service businesses” (defined in the Money Laundering Regulations 2007 as “an undertaking which by way of business operates a currency exchange office, transmits money (or any representations of monetary value) by any means or cashes cheques which are made payable to customers“). The claimants were in the international money transfer and remittance business and were customers of the defendant, Barclays Bank plc (“Barclays”).  Barclays decided to reduce its exposure to this business and notified the claimants of its intention to withdraw banking services from their businesses. The claimants brought an action against Barclays, claiming that Barclays was in a dominant position in the market for the provision of banking services to money service businesses, and that by ceasing to provide such services without objective justification, Barclays would be abusing its dominant position contrary to Article 102 of the Treaty on the Functioning of the European Union and the Chapter II prohibition in the Competition Act 1998.  The claimants sought an interim injunction requiring Barclays to reinstate the provision of services to them. The High Court found that there was a serious issue to be tried in relation to whether Barclays held a dominant position and that the question of alleged abuse of any dominance was an issue for trial.  The court did not consider damages to be an adequate remedy for any of the claimants, and the balance of convenience favoured the grant rather than the refusal of interim relief.  The High Court therefore granted the interim injunction requiring Barclays to reinstate the provision of services to the claimants. Dahabshiil Transfer Services Ltd v Barclays Bank plc and Harada Ltd and another v Barclays Bank plc [2013] EWHC 3379 (Ch)

Post By Dervla Broderick (16 Posts)


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