Akers & Ors v Samba Financial Group [2014] EWHC 540 (Ch) (28 February 2014)

Akers & Ors v Samba Financial Group [2014] EWHC 540 (Ch) (28 February 2014)

Saudi Arabian law governs the proprietary interest in the disputed shares; Saudi law does not recognise trusts with separation of legal and beneficial ownership; English proceedings under section 127 cannot succeed; Saudi Arabia is clearly and distinctly the more appropriate forum; proceedings stayed.

Citation
[2014] EWHC 540 (Ch)
Parties
Claimant / Respondent: Stephen John Akers; Claimant / Respondent: Mark Byers; Claimant / Respondent: Hugh Dickson; Claimant / Respondent: Saad Investments Company Limited (in liquidation); Defendant / Applicant: Samba Financial Group
Jurisdiction
England and Wales
Judgment Date
28 February 2014
Procedural Posture
Insolvency Proceedings / Application for Stay of Proceedings
Outcome
Stay granted; proceedings stayed in favour of Saudi Arabian courts.
Legal Topics
Forum Non Conveniens, Recognition of Foreign Insolvency Proceedings, Trusts Over Foreign Shares, Lex Situs, UNCITRAL Model Law, Hague Trusts Convention
Insolvency Conflict of Laws Trusts Forum Non Conveniens Recognition of Foreign Insolvency Proceedings Trusts Over Foreign Shares Lex Situs UNCITRAL Model Law +1 more

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Parties

Stephen John Akers

Claimant / Respondent

Mark Byers

Claimant / Respondent

Hugh Dickson

Claimant / Respondent

Saad Investments Company Limited (in liquidation)

Claimant / Respondent

Samba Financial Group

Defendant / Applicant

Procedural Posture

Insolvency Proceedings / Application for Stay of Proceedings

Legal Issues

  1. 1 Whether English proceedings should be stayed in favour of Saudi Arabian courts
  2. 2 Which law governs the proprietary interest in disputed shares
  3. 3 Applicability of section 127 Insolvency Act 1986 to foreign assets

Ratio Decidendi

Saudi Arabian law governs the proprietary interest in the disputed shares; Saudi law does not recognise trusts with separation of legal and beneficial ownership; English proceedings under section 127 cannot succeed; Saudi Arabia is clearly and distinctly the more appropriate forum; proceedings stayed.

Court Disposition

Stay granted; proceedings stayed in favour of Saudi Arabian courts.

Orders

  • Proceedings stayed pending determination in Saudi Arabia