Deutsche Bank AG v Sebastian Holdings Inc

Deutsche Bank AG v Sebastian Holdings Inc

The adjournment was refused because Mr Olav's illness did not affect SHI's ability to participate, as SHI was a represented corporate litigant and Mr Johansson had authority to instruct solicitors. The challenge to the receivership order was dismissed because there was no material non-disclosure; the 2012 Agreement was disclosed and the duty did not extend to raising all possible third-party claims. The funding disclosure order was granted as there was a properly arguable case for a non-party costs order and uncertainty as to the funder. The receivers' application was adjourned for directions pending the outcome of related TCI proceedings and to allow potential joinder of interested parties.

Parties
Claimant: Deutsche Bank AG; First Defendant: Sebastian Holdings Inc; Second Defendant (for Costs Purposes Only): Alexander Vik; Receivers: Receivers of certain assets of the First Defendant (Shane Crooks and Malcolm Cohen of BDO LLP)
Jurisdiction
England and Wales
Judgment Date
13 December 2017
Procedural Posture
Commercial Court Application / Post Judgment Applications: Adjournment, Challenge to Receivership, Funding Disclosure, Receivers' Variation
Outcome
Adjournment application dismissed; challenge to receivership order dismissed with costs; funding disclosure application granted; receivers' variation application adjourned for directions.
Legal Topics
Adjournment on Medical Grounds, Ex Parte Receivership Orders, Non Party Costs Orders, Disclosure of Litigation Funding, Variation of Receivership Order
Civil Procedure Commercial Law Insolvency Adjournment on Medical Grounds Ex Parte Receivership Orders Non Party Costs Orders Disclosure of Litigation Funding Variation of Receivership Order

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Parties

Deutsche Bank AG

Claimant

Sebastian Holdings Inc

First Defendant

Alexander Vik

Second Defendant (for Costs Purposes Only)

Receivers of certain assets of the First Defendant (Shane Crooks and Malcolm Cohen of BDO LLP)

Receivers

Procedural Posture

Commercial Court Application / Post Judgment Applications: Adjournment, Challenge to Receivership, Funding Disclosure, Receivers' Variation

Legal Issues

  1. 1 Whether the hearing should be adjourned due to illness of SHI's alleged beneficial owner
  2. 2 Whether the receivership order should be set aside or stayed for material non-disclosure
  3. 3 Whether SHI should be ordered to disclose the identity of funders of its challenge for non-party costs purposes

Ratio Decidendi

The adjournment was refused because Mr Olav's illness did not affect SHI's ability to participate, as SHI was a represented corporate litigant and Mr Johansson had authority to instruct solicitors. The challenge to the receivership order was dismissed because there was no material non-disclosure; the 2012 Agreement was disclosed and the duty did not extend to raising all possible third-party claims. The funding disclosure order was granted as there was a properly arguable case for a non-party costs order and uncertainty as to the funder. The receivers' application was adjourned for directions pending the outcome of related TCI proceedings and to allow potential joinder of interested parties.

Court Disposition

Adjournment application dismissed; challenge to receivership order dismissed with costs; funding disclosure application granted; receivers' variation application adjourned for directions.

Orders

  • Adjournment application dismissed
  • Challenge to receivership order dismissed with costs to Deutsche Bank and the Receivers against SHI