Vneshprombank LLC v Georgy Ivanovich Bedzhamov

Vneshprombank LLC v Georgy Ivanovich Bedzhamov

The advisory note did not have legal effect on the guarantee and did not alter Standard Chartered's liability; Vneshprombank complied with the consent orders by providing a guarantee substantially in the agreed terms. No implied term excluding uncertainty or litigation risk was necessary or appropriate. Relief from sanctions was properly granted.

Parties
Claimant/respondent: Vneshprombank LLC; First Defendant/appellant: Georgy Ivanovich Bedzhamov
Jurisdiction
England and Wales
Judgment Date
24 June 2022
Procedural Posture
Civil Appeal / Appeal From High Court Decision on Relief From Sanctions
Outcome
Appeal dismissed
Legal Topics
Relief From Sanctions, Interpretation of Consent Orders, Bank Guarantees, Implied Terms, International Sanctions
Civil Procedure Contract Law Relief From Sanctions Interpretation of Consent Orders Bank Guarantees Implied Terms International Sanctions

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Parties

Vneshprombank LLC

Claimant/respondent

Georgy Ivanovich Bedzhamov

First Defendant/appellant

Procedural Posture

Civil Appeal / Appeal From High Court Decision on Relief From Sanctions

Legal Issues

  1. 1 Whether the advisory note attached to the bank guarantee meant the guarantee was not 'substantially in the terms' set out in the consent order schedule
  2. 2 Whether the judge was wrong to decide the legal effect of the advisory note in the absence of Standard Chartered and other interested parties
  3. 3 Whether Vneshprombank failed to provide the unconditional guarantee bargained for, due to the advisory note and potential for litigation

Ratio Decidendi

The advisory note did not have legal effect on the guarantee and did not alter Standard Chartered's liability; Vneshprombank complied with the consent orders by providing a guarantee substantially in the agreed terms. No implied term excluding uncertainty or litigation risk was necessary or appropriate. Relief from sanctions was properly granted.

Court Disposition

Appeal dismissed

Orders

  • Vneshprombank permitted to substitute the bank guarantee for the money in court as security for costs
  • No further relief granted to Mr Bedzhamov