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Client Alert

International Dispute Resolution Update: Foreign Anti-Suit Injunctions

April 22, 2010

James E. Berger and Charlene Sun

Introduction

Anti-suit injunctions injunctions prohibiting a party from prosecuting litigation in a forum outside the enjoining courts jurisdiction are among the most extraordinary remedies a court can impose. Applications for anti-suit injunctions typically arise in a handful of circumstances. Domestically, anti-suit injunctions represent a fairly standard remedy to curb abusive litigation or to terminate proceedings that have been brought in connection with matters that have been resolved previously. Foreign anti-suit injunctions, however, are often sought in the context of international commercial disputes, where parties commence claims in courts of different nations. While the power of U.S. courts to issue anti-suit injunctions against parties subject to their jurisdiction is well-established, courts have repeatedly recognized that because an anti-suit injunction has the effect of restricting a foreign court of exercising its lawful jurisdiction, the remedy is a draconian one that necessitates the balancing of several weighty factors.

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