Graham Henry

The Canadian respondents brought a motion to set aside an ex parte Mareva injunction that froze their assets worldwide.

They argued the injunction should be set aside due to material non-disclosure by the applicants and insufficient evidence of their involvement in the alleged $71.7 million fraud or risk of dissipation.

The court dismissed the motion to set aside, finding no material non-disclosure and sufficient evidence of knowing receipt of misappropriated funds and risk of dissipation.

However, the court varied the order to release funds for the respondents' living and legal expenses.

The court also granted a sealing order over the transcripts of the respondents' compelled examinations to protect their rights against self-incrimination in light of a criminal investigation in Iran.

The respondents' request for security for the applicants' undertaking as to damages was denied.

The Bernstein Defendants brought a motion seeking to dismiss the crossclaim of Norma Walton and Ronauld Walton (the "Waltons") for damages due to their failure to pay a $32,000 costs award.

Alternatively, they sought to stay the crossclaim until costs were paid and the Waltons posted $200,000 security for costs.

The court ordered the Waltons to pay the outstanding $32,000 costs plus an additional $12,000 for the current motion within 60 days, failing which their crossclaim for damages would be dismissed.

If these costs were paid, the Waltons were then required to post $200,000 security for costs for their damages crossclaim within another 60 days, failing which it would also be dismissed.

The Waltons' claims for contribution and indemnity were permitted to proceed irrespective of these conditions.