Erste Group Bank AG (London Branch) v JSC "VMZ Red October" [2013] EWHC 2926 (Comm) (03 October 2013)

Erste Group Bank AG (London Branch) v JSC "VMZ Red October" [2013] EWHC 2926 (Comm) (03 October 2013)

The court held that the Claimant had established a serious issue to be tried on the merits, that the claims fell within the relevant jurisdictional gateways, and that England was clearly the appropriate forum for the trial, particularly given the exclusive jurisdiction clauses and the risk of inconsistent judgments....

Source-derived case information.

Citation
[2013] EWHC 2926 (Comm)
Parties
Claimant: ERSTE GROUP BANK A. G. London Branch; First Defendant: JSC "VMZ RED OCTOBER"; Second Defendant: RED OCTOBER STEEL WORKS; Third Defendant: STATE CORPORATION FOR ASSISTANCE TO DEVELOPMENT, PRODUCTION AND EXPORT OF ADVANCED TECHNOLOGY INDUSTRIAL PRODUCT "RUSSIAN TECHNOLOGIES"; Fourth Defendant: CJSC RUSSPETSSTAL; Fifth Defendant: LLC RT-CAPITAL; Sixth Defendant: CJSC NIOKRINVEST; Seventh Defendant: OJSC RUSSPETSMASH; Eighth Defendant: LLC SPETSSTALRESURS
Jurisdiction
England and Wales
Judgment Date
03 October 2013
Procedural Posture
Commercial Court Application to Set Aside Service Out of Jurisdiction / Interlocutory Application (jurisdictional Challenge)
Outcome
Applications to set aside service out of the jurisdiction dismissed
Legal Topics
Jurisdiction, Service Out of Jurisdiction, Forum Conveniens, Unlawful Means Conspiracy, Guarantee Enforcement, Section 423 Insolvency Act 1986, Asset Stripping, Summary Judgment
Commercial Law Banking and Finance Insolvency Conflict of Laws Jurisdiction Service Out of Jurisdiction Forum Conveniens Unlawful Means Conspiracy +4 more

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Summary, issues, holding and outcome

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Parties

ERSTE GROUP BANK A. G. London Branch

Claimant

JSC "VMZ RED OCTOBER"

First Defendant

RED OCTOBER STEEL WORKS

Second Defendant

STATE CORPORATION FOR ASSISTANCE TO DEVELOPMENT, PRODUCTION AND EXPORT OF ADVANCED TECHNOLOGY INDUSTRIAL PRODUCT "RUSSIAN TECHNOLOGIES"

Third Defendant

CJSC RUSSPETSSTAL

Fourth Defendant

LLC RT-CAPITAL

Fifth Defendant

CJSC NIOKRINVEST

Sixth Defendant

OJSC RUSSPETSMASH

Seventh Defendant

LLC SPETSSTALRESURS

Eighth Defendant

Procedural Posture

Commercial Court Application to Set Aside Service Out of Jurisdiction / Interlocutory Application (jurisdictional Challenge)

Legal Issues

  1. 1 Whether service out of the jurisdiction on the Third and Fifth Defendants should be set aside
  2. 2 Whether there is a serious issue to be tried on the merits
  3. 3 Whether the claims fall within the jurisdictional gateways under CPR Practice Direction 6B

Ratio Decidendi

The court held that the Claimant had established a serious issue to be tried on the merits, that the claims fell within the relevant jurisdictional gateways, and that England was clearly the appropriate forum for the trial, particularly given the exclusive jurisdiction clauses and the risk of inconsistent judgments. The applications to set aside service out of the jurisdiction were therefore dismissed.

Court Disposition

Applications to set aside service out of the jurisdiction dismissed

Orders

  • Service out of the jurisdiction on the Third and Fifth Defendants stands
  • Proceedings against all Defendants to continue in the English court