East-West United Bank SA v Gusinski & Ors [2024] EWHC 2223 (Ch) (28 August 2024)

East-West United Bank SA v Gusinski & Ors [2024] EWHC 2223 (Ch) (28 August 2024)

There is a prima facie case that Mr Gusinski, through the New Media Group, engaged in sufficiently dishonest or underhand conduct to avoid repayment of sums owed to the claimant, including misleading courts and arbitral tribunal and diverting funds. This conduct engages the iniquity exception, negating legal professional privilege for communications brought into existence as part of or in furtherance of the scheme.

Citation
[2024] EWHC 2223 (Ch)
Parties
Claimant: East-West United Bank S.A.; First Defendant: Mr Vladimir Gusinski; Second Defendant: GSC Solicitors LLP; Third Defendant: Mr Barry Samuels; First Respondent: The Financial Secretary of the Cayman Islands; Second Respondent: New Media Programming (in liquidation); Third Respondent: Nova Century Holdings Limited; Fourth Respondent: Progress Studio LLC (in liquidation); Fifth Respondent: Movie Production Center LLC (in liquidation)
Jurisdiction
England and Wales
Judgment Date
28 August 2024
Procedural Posture
Chancery Division Business List / Interlocutory Application for Iniquity Exception to Legal Professional Privilege
Outcome
Application granted
Legal Topics
Legal Professional Privilege, Iniquity Exception, Conspiracy, Breach of Trust, Equitable Assignment, Constructive Trust
Civil Procedure Insolvency Trusts and Fiduciary Law Legal Professional Privilege Iniquity Exception Conspiracy Breach of Trust Equitable Assignment +1 more

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Parties

East-West United Bank S.A.

Claimant

Mr Vladimir Gusinski

First Defendant

GSC Solicitors LLP

Second Defendant

Mr Barry Samuels

Third Defendant

The Financial Secretary of the Cayman Islands

First Respondent

New Media Programming (in liquidation)

Second Respondent

Nova Century Holdings Limited

Third Respondent

Progress Studio LLC (in liquidation)

Fourth Respondent

Movie Production Center LLC (in liquidation)

Fifth Respondent

Procedural Posture

Chancery Division Business List / Interlocutory Application for Iniquity Exception to Legal Professional Privilege

Legal Issues

  1. 1 Whether the iniquity exception applies to communications between defendants and respondents regarding repayment of sums owed to the claimant
  2. 2 Whether legal professional privilege is negated by alleged dishonest scheme to avoid repayment

Ratio Decidendi

There is a prima facie case that Mr Gusinski, through the New Media Group, engaged in sufficiently dishonest or underhand conduct to avoid repayment of sums owed to the claimant, including misleading courts and arbitral tribunal and diverting funds. This conduct engages the iniquity exception, negating legal professional privilege for communications brought into existence as part of or in furtherance of the scheme.

Court Disposition

Application granted

Orders

  • No legal professional privilege applies to documents and communications brought into existence as part of or in furtherance of the alleged scheme to avoid repayment by Mr Gusinski and the New Media Group.