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6/19/2007

START DATE

END DATE

6/28/2007

Joseph E. Lenihan v LSF Consolidated Golf Holdings Ltd.

COURT:

LAW:

JUDGE(S):

CLAIMANT'S LAWYER:

DEFENDANT'S LAWYER:

The Supreme Court of Bermuda (Commercial Court)

Commercial Law, Corporate Disputes, Arbitration, Partnership Law

Hon. Justice Kawaley

Ms. Kiernan Bell (Appleby)

Mr. Paul Smith (Conyers Dill & Pearman)

FACTS OF THE CASE:

Joseph E. Lenihan, a limited partner in LSF Pacific Golf Holdings LP, applied for the interim appointment of receivers over the assets of the limited partnership, arguing that it was not properly formed under Bermuda law. He sought the dissolution and winding-up of the partnership, contending that the general partner, LSF Consolidated Golf Holdings Ltd., could not be trusted to manage assets fairly. The general partner sought a stay of proceedings, invoking an arbitration clause that required disputes to be resolved in Japan under ICC rules.

SUMMARY:

(1) Did the limited partnership meet Bermuda's statutory requirements? (2) Should a court appoint receivers over assets when an arbitration clause governs disputes? (3) Was there sufficient evidence to suggest the general partner was mismanaging assets?

OUTCOMES:

Stay granted; receivership application adjourned with liberty to restore.

RULED IN FAVOUR OF:

LSF Consolidated Golf Holdings Ltd. (Defendant).

PLAINTIFF/CLAIMANT

DEFENDANT:

DURATION (DAYS):

ISSUES:

RELEVANCE:

RULING:

RULING TYPE:

CASES CITED:

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Joseph E. Lenihan v LSF Consolidated Golf Holdings Ltd.

Joseph E. Lenihan, a limited partner in LSF Pacific Golf Holdings LP, applied for the interim appointment of receivers over the assets of the limited partnership, arguing that it was not properly formed under Bermuda law. He sought the dissolution and winding-up of the partnership, contending that the general partner, LSF Consolidated Golf Holdings Ltd., could not be trusted to manage assets fairly. The general partner sought a stay of proceedings, invoking an arbitration clause that required disputes to be resolved in Japan under ICC rules.

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