Novoship (UK) Ltd & Ors v Mikhaylyuk & Ors

Novoship (UK) Ltd & Ors v Mikhaylyuk & Ors

The Settlement Agreement provides that only upon actual payment of the full agreed sums (the Ruperti Payment Obligation) are all claims, including the judgment debts, fully and finally discharged and released. If the Ruperti defendants default in payment, the Novoship companies are entitled to enforce the full outstanding judgment debts, but late payment of the full agreed sums (with interest) still triggers the discharge and release of all claims. There is no implied right of election for the Novoship companies to prevent the settlement provisions from taking effect after late payment. The freezing order should be discharged or varied if the Ruperti defendants have paid or tendered the...

Parties
Claimants: Novoship (UK) Limited and ors; Defendants: Vladimir Mikhaylyuk and ors
Jurisdiction
England and Wales
Judgment Date
15 April 2015
Procedural Posture
Commercial Application (interpretation of Settlement Agreement and Freezing Order) / Post Judgment Application for Declaratory Relief and Variation/discharge of Freezing Order
Outcome
Application for declarations substantially allowed; Novoship companies cannot enforce judgment debts after full payment of the settlement sum (even if late); freezing order to be discharged or varied subject to confirmation of payment/tender.
Legal Topics
Interpretation of Settlement Agreements, Freezing Orders, Enforcement of Judgments, Penalties in Contract, Declaratory Relief
Contract Law Civil Procedure Commercial Law Interpretation of Settlement Agreements Freezing Orders Enforcement of Judgments Penalties in Contract Declaratory Relief

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 4 Authorities cited 9 Party arguments 2 Amounts and remedies 7
Sign in to unlock

Parties

Novoship (UK) Limited and ors

Claimants

Vladimir Mikhaylyuk and ors

Defendants

Procedural Posture

Commercial Application (interpretation of Settlement Agreement and Freezing Order) / Post Judgment Application for Declaratory Relief and Variation/discharge of Freezing Order

Legal Issues

  1. 1 Proper interpretation and effect of the Settlement Agreement between the parties
  2. 2 Whether payment of the agreed sums (including late payment) under the Settlement Agreement discharges the underlying judgment debts
  3. 3 Whether the Novoship companies are entitled to enforce the full judgment debts after default and/or late payment under the Settlement Agreement

Ratio Decidendi

The Settlement Agreement provides that only upon actual payment of the full agreed sums (the Ruperti Payment Obligation) are all claims, including the judgment debts, fully and finally discharged and released. If the Ruperti defendants default in payment, the Novoship companies are entitled to enforce the full outstanding judgment debts, but late payment of the full agreed sums (with interest) still triggers the discharge and release of all claims. There is no implied right of election for the Novoship companies to prevent the settlement provisions from taking effect after late payment. The freezing order should be discharged or varied if the Ruperti defendants have paid or tendered the...

Court Disposition

Application for declarations substantially allowed; Novoship companies cannot enforce judgment debts after full payment of the settlement sum (even if late); freezing order to be discharged or varied subject to confirmation of payment/tender.

Orders

  • Declarations as to the meaning and effect of the Settlement Agreement granted in line with the judgment's reasoning.
  • Freezing order to be discharged or varied to reflect the sums paid/tendered, subject to further submissions if necessary.