Amalgamated Metal Trading Ltd. v City of London Police Financial Investigation Unit & Ors

Amalgamated Metal Trading Ltd. v City of London Police Financial Investigation Unit & Ors

The action against the SFO must be stayed as it serves no legitimate purpose; AMT's claim for declaratory relief is inappropriate as against the police or SFO, since the only issue was whether consent to payment should be given, not whether the funds are proceeds of crime. The existence of suspicion is sufficient for refusal of consent, and the court will not grant interim or final declarations on the substantive issue except after a full trial between the proper parties. Wavesmetco's application to introduce a counterclaim for payment is allowed, and the proper dispute is now between AMT and Wavesmetco.

Parties
Claimant: Amalgamated Metal Trading Limited; First Defendant: City of London Police Financial Investigation Unit; Second Defendant: Wavesmetco LLC; Third Defendant: Serious Fraud Office; Interested Party: RBG Resources plc (in liquidation)
Jurisdiction
England and Wales
Judgment Date
03 April 2003
Procedural Posture
Civil (commercial) / Interlocutory Application and Directions Hearing
Outcome
Proceedings against the Serious Fraud Office stayed; permission granted to Wavesmetco to serve Defence and Counterclaim; AMT's claim rendered redundant; no declaration granted as to proceeds of crime.
Legal Topics
Money Laundering, Proceeds of Crime, Declaratory Relief, Interim Relief, Joinder of Parties, Burden of Proof
Criminal Law Banking and Finance Law Civil Procedure Money Laundering Proceeds of Crime Declaratory Relief Interim Relief Joinder of Parties +1 more

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Parties

Amalgamated Metal Trading Limited

Claimant

City of London Police Financial Investigation Unit

First Defendant

Wavesmetco LLC

Second Defendant

Serious Fraud Office

Third Defendant

RBG Resources plc (in liquidation)

Interested Party

Procedural Posture

Civil (commercial) / Interlocutory Application and Directions Hearing

Legal Issues

  1. 1 Whether the court should grant an interim or final declaration that the funds held by AMT are not the proceeds of criminal conduct
  2. 2 Whether the proceedings against the SFO should be stayed
  3. 3 Whether AMT's claim for declaratory relief is appropriate against the police or SFO

Ratio Decidendi

The action against the SFO must be stayed as it serves no legitimate purpose; AMT's claim for declaratory relief is inappropriate as against the police or SFO, since the only issue was whether consent to payment should be given, not whether the funds are proceeds of crime. The existence of suspicion is sufficient for refusal of consent, and the court will not grant interim or final declarations on the substantive issue except after a full trial between the proper parties. Wavesmetco's application to introduce a counterclaim for payment is allowed, and the proper dispute is now between AMT and Wavesmetco.

Court Disposition

Proceedings against the Serious Fraud Office stayed; permission granted to Wavesmetco to serve Defence and Counterclaim; AMT's claim rendered redundant; no declaration granted as to proceeds of crime.

Orders

  • Proceedings against the Serious Fraud Office are stayed.
  • Permission granted to Wavesmetco to serve Defence and Counterclaim.