Phoenix Group Foundation v Cochrane & Anor [2017] EWHC 418 (Comm) (06 March 2017)

Phoenix Group Foundation v Cochrane & Anor [2017] EWHC 418 (Comm) (06 March 2017)

There is a good arguable case that the £2 million in Stewarts Law's client account is amenable to execution of a judgment against Dr Cochrane, as the true ownership and authority for the transfer are unclear and may be subject to reversal. The Chabra jurisdiction is satisfied, and the balance of convenience favours continuation of the freezing order. Procedural irregularities by Phoenix do not justify discharge of the order in the absence of prejudice to Stewarts Law.

Citation
[2017] EWHC 418 (Comm)
Parties
Claimant/applicant: Phoenix Group Foundation; First Defendant/respondent: Gail Alison Cochrane; Second Defendant/respondent: Stewarts Law LLP; Additional Applicant: Harbour Fund II LP; Interested Party: Serious Fraud Office (SFO); Interested Party: Joint Liquidators of Unicorn Worldwide Holdings Limited, Glen Moar Properties Limited and Ballaugh Holdings Limited; Interested Party: Enforcement Receivers; Interested Party: Viscount of Jersey
Jurisdiction
England and Wales
Judgment Date
06 March 2017
Procedural Posture
Commercial Court Application (freezing Order) / Interlocutory Application to Continue or Discharge Freezing Order Pending Trial
Outcome
Freezing order continued until further order.
Legal Topics
Freezing Injunctions, Chabra Jurisdiction, Asset Tracing, Solicitors' Accounts, Interlocutory Relief
Civil Procedure Commercial Law Freezing Injunctions Chabra Jurisdiction Asset Tracing Solicitors' Accounts Interlocutory Relief

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Parties

Phoenix Group Foundation

Claimant/applicant

Gail Alison Cochrane

First Defendant/respondent

Stewarts Law LLP

Second Defendant/respondent

Harbour Fund II LP

Additional Applicant

Serious Fraud Office (SFO)

Interested Party

Joint Liquidators of Unicorn Worldwide Holdings Limited, Glen Moar Properties Limited and Ballaugh Holdings Limited

Interested Party

Enforcement Receivers

Interested Party

Viscount of Jersey

Interested Party

Procedural Posture

Commercial Court Application (freezing Order) / Interlocutory Application to Continue or Discharge Freezing Order Pending Trial

Legal Issues

  1. 1 Whether the freezing order over £2 million held by Stewarts Law LLP should be continued or discharged
  2. 2 Whether Phoenix Group Foundation has a sufficient legal basis for a freezing order against assets held by a third party (Stewarts Law LLP)
  3. 3 Whether the Chabra jurisdiction applies to the £2 million in question

Ratio Decidendi

There is a good arguable case that the £2 million in Stewarts Law's client account is amenable to execution of a judgment against Dr Cochrane, as the true ownership and authority for the transfer are unclear and may be subject to reversal. The Chabra jurisdiction is satisfied, and the balance of convenience favours continuation of the freezing order. Procedural irregularities by Phoenix do not justify discharge of the order in the absence of prejudice to Stewarts Law.

Court Disposition

Freezing order continued until further order.

Orders

  • The freezing order over £2 million in Stewarts Law's client account is continued until further order.
  • The sum is to be paid to the Enforcement Receivers to hold to the order of the Court pending determination of rival claims.