Assets Recovery Agency v Szepietowski & Ors [2009] EWHC 655 (Ch) (19 March 2009)

Assets Recovery Agency v Szepietowski & Ors [2009] EWHC 655 (Ch) (19 March 2009)

On the true construction of paragraph 4.5 of the Settlement Deed, Mrs. Szepietowski is only required to grant a charge over the Additional Properties and not over Ashford House or any other property. The agreement is property-based, and the risk of insufficiency in the equity of the Additional Properties to discharge the RBS debt is to be borne by SOCA.

Citation
[2009] EWHC 655 (Ch)
Parties
Claimant: The Director of the Assets Recovery Agency (now the Serious Organised Crime Agency); First Defendant: John Szepietowski; Second Defendant: Susan Szepietowski; Fifth Defendant: Merchant Taylor Company Ltd.; Sixth Defendant: Cobham Investments Ltd.; Seventh Defendant: Cobham Investments Leisure Ltd.
Jurisdiction
England and Wales
Judgment Date
19 March 2009
Procedural Posture
Chancery Division Civil Application / Application for Construction of Settlement Deed
Outcome
Application granted in favour of Mrs. Szepietowski
Legal Topics
Construction of Settlement Agreements, Charges and Mortgages, Equitable Remedies, Property Recovery Under Proceeds of Crime Act 2002
Civil Procedure Property Law Banking and Finance Law Construction of Settlement Agreements Charges and Mortgages Equitable Remedies Property Recovery Under Proceeds of Crime Act 2002

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Parties

The Director of the Assets Recovery Agency (now the Serious Organised Crime Agency)

Claimant

John Szepietowski

First Defendant

Susan Szepietowski

Second Defendant

Merchant Taylor Company Ltd.

Fifth Defendant

Cobham Investments Ltd.

Sixth Defendant

Cobham Investments Leisure Ltd.

Seventh Defendant

Procedural Posture

Chancery Division Civil Application / Application for Construction of Settlement Deed

Legal Issues

  1. 1 Proper construction of paragraph 4.5 of the Settlement Deed regarding the scope of the charge to be granted by Mrs. Szepietowski to SOCA
  2. 2 Whether the charge should extend only to the Additional Properties or also to Ashford House

Ratio Decidendi

On the true construction of paragraph 4.5 of the Settlement Deed, Mrs. Szepietowski is only required to grant a charge over the Additional Properties and not over Ashford House or any other property. The agreement is property-based, and the risk of insufficiency in the equity of the Additional Properties to discharge the RBS debt is to be borne by SOCA.

Court Disposition

Application granted in favour of Mrs. Szepietowski

Orders

  • The Additional Properties are to be re-transferred by the Trustee to Mrs. Szepietowski.
  • Mrs. Szepietowski is to grant a charge over the entirety of her interest in the Additional Properties to SOCA in terms to be agreed between the parties, with liberty to apply if agreement cannot be reached.