Karis v Digital CC Management Pty Ltd

The applicant, Ms Karis, applied for an anti-suit injunction to restrain the first respondent, Mr Digital, from pursuing proceedings against her in the United States District Court for the District of Massachusetts. The dispute arose from a falling out between Ms Karis and Mr Digital over a bitcoin trading business. Ms Karis alleged that Mr Digital had breached agreements that were governed by Western Australian law. The court was tasked with determining whether to grant the injunction and, if so, what its terms should be.

The court considered the principles governing anti-suit injunctions, including the need to protect the jurisdiction of the Federal Court of Australia, the balance of convenience, and the existence of a serious issue to be tried. The court found that Ms Karis had established a serious issue to be tried and that the balance of convenience favoured granting the injunction. The court also considered that the parties had agreed that Western Australian law would govern their agreements, and that the Federal Court of Australia was therefore the appropriate forum for the resolution of their dispute.

Accordingly, the court granted the injunction on an interim basis, restraining Mr Digital from taking any further steps in the Massachusetts proceedings other than those required to have the proceeding dismissed or stayed until further order. The court also ordered that Ms Karis serve various documents on Mr Digital, including a copy of the court's order and reasons for judgment. The court reserved costs and granted liberty to apply.

The final orders of the court were that Mr Digital was restrained from taking any further steps in the Massachusetts proceedings other than those required to have the proceeding dismissed or stayed until further order. Ms Karis was ordered to serve various documents on Mr Digital, and costs were reserved. The reasons for judgment were published from chambers, and entry of orders was dealt with in Rule 39.32 of the Federal Court Rules 2011.