BVI Court Issues Landmark Interim Damages Order

On October 2, 2025, the Eastern Caribbean Supreme Court, Court of Appeal, delivered a landmark judgment in the case of Sancus Financial Holdings Limited (In Liquidation) & Ors v Chad Holm. The court upheld a US$16.5 million interim damages order, marking the first recorded judgment of its kind under Part 17 of the Civil Procedure Rules (CPR) in the British Virgin Islands (BVI).

Case Overview

The appellants challenged the interim damages order granted by Justice Wallbank, arguing against the discretionary jurisdiction exercised under CPR 17.6. The Court of Appeal dismissed the appeal, affirming the lower court's decision and emphasizing the broad discretionary powers conferred by Part 17 of the CPR to grant interim remedies at any stage of proceedings.

Judicial Reasoning

The Court of Appeal highlighted the three-stage methodology for awarding interim damages:

1. Estimating the likely amount of damages to be awarded at final judgment.
2. Determining a reasonable proportion of that likely amount for the interim award.
3. Considering relevant discretionary factors.

This approach aligns the BVI's judicial practices with established English principles, providing a clear framework for future cases involving interim damages.

Implications

This judgment sets a significant precedent in the BVI's legal landscape, offering guidance on the exercise of judicial discretion in awarding interim damages, particularly in complex commercial cases. Legal practitioners and entities involved in litigation within the BVI should take note of this development, as it underscores the court's willingness to grant substantial interim relief when appropriate.

For more detailed information, please refer to the official announcement from Walkers.