Korchevtsev v Severa & Ors [2022] EWHC 2324 (Ch) (13 September 2022)

Korchevtsev v Severa & Ors [2022] EWHC 2324 (Ch) (13 September 2022)

The Claimant has established a prima facie case of misappropriation by the First Defendant, supported by the H&F Report, journal entries, and evidence regarding fabricated board minutes. The explanations offered by the First Defendant cannot be confidently predicted to be accepted at trial. The exception to Foss v Harbottle applies due to 50/50 deadlock. Permission to continue the double derivative claim is granted. The worldwide freezing injunction is continued as the Claimant has a good arguable case. Further disclosure is ordered.

Citation
[2022] EWHC 2324 (Ch)
Parties
Claimant: Evgeny Korchevtsev; First Defendant: Martin Severa; Second Defendant: Fatfacades Limited; Third Defendant: F. A. T. Structures Limited
Jurisdiction
England and Wales
Judgment Date
13 September 2022
Procedural Posture
Double Derivative Claim and Applications for Freezing Injunctions / Interlocutory Judgment on Permission and Continuation of Injunctions
Outcome
Permission granted to continue double derivative claim; worldwide freezing injunction continued; further disclosure ordered.
Legal Topics
Double Derivative Claims, Directors' Duties, Freezing Injunctions, Misappropriation of Assets, Corporate Governance
Company Law Civil Procedure Double Derivative Claims Directors' Duties Freezing Injunctions Misappropriation of Assets Corporate Governance

Case Brief

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Parties

Evgeny Korchevtsev

Claimant

Martin Severa

First Defendant

Fatfacades Limited

Second Defendant

F. A. T. Structures Limited

Third Defendant

Procedural Posture

Double Derivative Claim and Applications for Freezing Injunctions / Interlocutory Judgment on Permission and Continuation of Injunctions

Legal Issues

  1. 1 Whether permission should be granted to continue a double derivative claim on behalf of subsidiaries against a director for alleged misappropriation
  2. 2 Whether the worldwide freezing injunction should be continued
  3. 3 Whether the proprietary freezing injunction should be granted

Ratio Decidendi

The Claimant has established a prima facie case of misappropriation by the First Defendant, supported by the H&F Report, journal entries, and evidence regarding fabricated board minutes. The explanations offered by the First Defendant cannot be confidently predicted to be accepted at trial. The exception to Foss v Harbottle applies due to 50/50 deadlock. Permission to continue the double derivative claim is granted. The worldwide freezing injunction is continued as the Claimant has a good arguable case. Further disclosure is ordered.

Court Disposition

Permission granted to continue double derivative claim; worldwide freezing injunction continued; further disclosure ordered.

Orders

  • Permission to continue double derivative claim granted.
  • Worldwide freezing injunction continued until further order.