Paylor v Bowers & Ors [2018] EWHC 2244 (Ch) (25 July 2018)

Paylor v Bowers & Ors [2018] EWHC 2244 (Ch) (25 July 2018)

The Defendants failed to prove on the balance of probabilities that there was no prima facie case of fraudulent wrongdoing, that the Claimants failed in their duty of full and frank disclosure, or that the sums secured by the WFOs were excessive. The Claimants' evidence on asset valuation and alleged fraud was sufficient, and the WFOs were not used oppressively. No conflict of interest or grounds to set aside the cost orders were established.

Citation
[2018] EWHC 2244 (Ch)
Parties
Claimant/respondent: John Edmund Paylor (as Trustee in Bankruptcy of Junie Conrad Omari Bowers); Claimant/respondent: John Edmund Paylor (as liquidator of Proximity Ventures Limited); Claimant/respondent: Stephen Richard Penn (as liquidator of GFI Consultants Limited); Claimant/respondent: Proximity Ventures Limited (in liquidation, acting through its liquidator John Edmund Paylor); Claimant/respondent: GFI Consultants Ltd (in liquidation, acting through its liquidator Stephen Richard Penn); Defendant/applicant: Junie Conrad Omari Bowers; Defendant/applicant: Andrew Nathaniel Skeene; Defendant/applicant: Michelle Louise Windebank; Non Cause of Action Defendant: Intrinsbit Capital Ltd; Non Cause of Action Defendant: Sergey Buravlev
Jurisdiction
England and Wales
Judgment Date
25 July 2018
Procedural Posture
Chancery Division Civil Claim (freezing Injunction) / Application to Discharge, Set Aside, Vary And/or Stay Worldwide Freezing Orders (wfos)
Outcome
Application refused; all relief sought by Defendants denied.
Legal Topics
Freezing Injunctions, Full and Frank Disclosure, Fraudulent Misappropriation, Breach of Fiduciary Duty, Valuation of Assets, Costs Orders
Civil Procedure Insolvency Fraud Freezing Injunctions Full and Frank Disclosure Fraudulent Misappropriation Breach of Fiduciary Duty Valuation of Assets +1 more

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Parties

John Edmund Paylor (as Trustee in Bankruptcy of Junie Conrad Omari Bowers)

Claimant/respondent

John Edmund Paylor (as liquidator of Proximity Ventures Limited)

Claimant/respondent

Stephen Richard Penn (as liquidator of GFI Consultants Limited)

Claimant/respondent

Proximity Ventures Limited (in liquidation, acting through its liquidator John Edmund Paylor)

Claimant/respondent

GFI Consultants Ltd (in liquidation, acting through its liquidator Stephen Richard Penn)

Claimant/respondent

Junie Conrad Omari Bowers

Defendant/applicant

Andrew Nathaniel Skeene

Defendant/applicant

Michelle Louise Windebank

Defendant/applicant

Intrinsbit Capital Ltd

Non Cause of Action Defendant

Sergey Buravlev

Non Cause of Action Defendant

Procedural Posture

Chancery Division Civil Claim (freezing Injunction) / Application to Discharge, Set Aside, Vary And/or Stay Worldwide Freezing Orders (wfos)

Legal Issues

  1. 1 Whether the WFOs should be discharged, set aside, varied or stayed
  2. 2 Whether the Claimants failed in their duty of full and frank disclosure
  3. 3 Whether the sums secured by the WFOs are excessive

Ratio Decidendi

The Defendants failed to prove on the balance of probabilities that there was no prima facie case of fraudulent wrongdoing, that the Claimants failed in their duty of full and frank disclosure, or that the sums secured by the WFOs were excessive. The Claimants' evidence on asset valuation and alleged fraud was sufficient, and the WFOs were not used oppressively. No conflict of interest or grounds to set aside the cost orders were established.

Court Disposition

Application refused; all relief sought by Defendants denied.

Orders

  • WFOs to remain in force without variation or discharge.
  • Application to stay WFOs pending further valuation refused.