Bermudes
The Supreme Court of Bermuda has issued a ruling concerning the costs associated with the sanction hearing of the scheme of arrangement for Oceans Wilsons Holdings Limited (OWHL). The decision, delivered on March 6, 2026, addresses the financial responsibilities arising from the legal proceedings initiated by Arnhold LLC against OWHL.
Arnhold LLC, a shareholder in OWHL, challenged the company's proposed scheme of arrangement, leading to a sanction hearing. The court had previously granted a provisional order that the costs of the sanction hearing were to be borne by Arnhold LLC, subject to further submissions.
In the recent ruling, the court confirmed that Arnhold LLC is responsible for the costs incurred during the sanction hearing. The judgment emphasized that the costs should be taxed if not agreed upon and certified for two counsel. This decision underscores the court's stance on allocating financial responsibilities in corporate litigation, particularly in cases involving schemes of arrangement.
This ruling highlights the importance of understanding the financial implications when shareholders challenge corporate decisions through legal channels. It serves as a precedent for similar cases, indicating that parties initiating such challenges may be held accountable for associated legal costs.
For more detailed information, the full ruling is available on the Government of Bermuda's official website.
