Vneshprombank Llc v Bedzhamov [2022] EWCA Civ 854 (24 June 2022)

Vneshprombank Llc v Bedzhamov [2022] EWCA Civ 854 (24 June 2022)

The advisory note accompanying the guarantee had no legal effect on the terms of the guarantee or on Standard Chartered's liability under it. Vneshprombank complied with the consent orders by providing a guarantee substantially in the agreed terms, and there was no basis to imply a term requiring an unconditional guarantee free from any uncertainty or litigation risk. The judge was correct to grant relief from sanctions and to proceed in the absence of Standard Chartered and other interested parties.

Citation
[2022] EWCA Civ 854
Parties
Claimant/respondent: Vneshprombank LLC; First Defendant/appellant: Georgy Ivanovich Bedzhamov
Jurisdiction
England and Wales
Judgment Date
24 June 2022
Procedural Posture
Appeal / Court of Appeal Judgment on Appeal From High Court
Outcome
Appeal dismissed
Legal Topics
Relief From Sanctions, Interpretation of Consent Orders, Bank Guarantees, International Sanctions, Implied Terms in Contracts
Civil Procedure Commercial Law Relief From Sanctions Interpretation of Consent Orders Bank Guarantees International Sanctions Implied Terms in Contracts

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Parties

Vneshprombank LLC

Claimant/respondent

Georgy Ivanovich Bedzhamov

First Defendant/appellant

Procedural Posture

Appeal / Court of Appeal Judgment on Appeal From High Court

Legal Issues

  1. 1 Whether the advisory note accompanying the bank guarantee meant the guarantee was not 'substantially in the terms' required by the consent orders
  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 by Mr Bedzhamov, due to the advisory note and associated uncertainty

Ratio Decidendi

The advisory note accompanying the guarantee had no legal effect on the terms of the guarantee or on Standard Chartered's liability under it. Vneshprombank complied with the consent orders by providing a guarantee substantially in the agreed terms, and there was no basis to imply a term requiring an unconditional guarantee free from any uncertainty or litigation risk. The judge was correct to grant relief from sanctions and to proceed in the absence of Standard Chartered and other interested parties.

Court Disposition

Appeal dismissed

Orders

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