Manx Debtor - British Creditor

Posted on May 26, 2017

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Lawyers based in the United Kingdom often first come across the Isle of Man when their British based client might be seeking to take some legal action against an entity based in the Isle of Man.  This could for instance be a supplier of goods based in the UK which has contracted with a Manx person (individual or company) and perhaps a dispute has subsequently arisen or there have been payment issues. 

In these circumstances, the UK lawyer will first need to realise that the Isle of Man is a separate legal jurisdiction.  Proceeding straight to the English County Court, say, when the debtor resides in the Isle of Man might therefore not be the best move.  The Isle of Man does have reciprocal arrangements for British High Court judgments under a mutual registration system but there are restrictions as to its deployment.   

The British based lawyer will often sensibly seek input at the outset from a Manx Advocate as to how to proceed in these circumstances.  The contract made between the parties will need to be studied as it may have a law and jurisdiction clause.  While not necessarily determinative of the correct forum and law for the dispute, the intentions of the parties have an influence.  There is also the question of enforcement to consider.  If you are seeking a remedy against a Manx based entity then taking proceedings in the Isle of Man is likely to have more effect when it comes to enforcement assuming an asset base is present.   

The Manx proceedings themselves could be by way of Isle of Man High Court claim form (there is no County Court in the Isle of Man).  However the statutory demand/winding up route is also one that may be available and appropriate for a debt claim.   

M&P Legal deals with numerous such requests for assistance from lawyers and other entities outside the Isle of Man.  The firm operates a fixed fee schedule for debt recovery matters and is well experienced in advising on how best to reach the desired goal.  The firm’s website has details of our services, see http://www.mplegal.im/practice-areas/litigation-and-dispute-resolution.

 

Please contact litigation head John Aycock if you wish to discuss further jta@mplegal.im.

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