Vneshprombank LLC v Bedzhamov [2022] EWHC 101 (Ch) (19 January 2022)

Vneshprombank LLC v Bedzhamov [2022] EWHC 101 (Ch) (19 January 2022)

The Advisory Note did not legally affect the terms of the guarantee, which remained an unequivocal undertaking governed by English law and the URDG. The Credit Suisse wording was immaterial. The breaches relating to timing and form were not serious or significant and caused no prejudice. Relief from sanctions was appropriate and VPB was permitted to substitute the guarantee for the existing security.

Citation
[2022] EWHC 101 (Ch)
Parties
Appellant/claimant: Vneshprombank LLC; Respondent/first Defendant: Georgy Ivanovich Bedzhamov
Jurisdiction
England and Wales
Judgment Date
19 January 2022
Procedural Posture
Appeal / Judgment on Appeal From Order of Master Kaye Dated 19 April 2021
Outcome
Appeal allowed
Legal Topics
Relief From Sanctions, Security for Costs, Interpretation of Guarantees, Consent Orders, Variation of Court Orders
Civil Procedure Banking Law Relief From Sanctions Security for Costs Interpretation of Guarantees Consent Orders Variation of Court Orders

Case Brief

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Parties

Vneshprombank LLC

Appellant/claimant

Georgy Ivanovich Bedzhamov

Respondent/first Defendant

Procedural Posture

Appeal / Judgment on Appeal From Order of Master Kaye Dated 19 April 2021

Legal Issues

  1. 1 Whether the inclusion of an Advisory Note and Credit Suisse wording in a bank guarantee constituted a material departure from the terms of a consent order for security for costs
  2. 2 Whether breaches relating to timing and form of guarantee justified refusal of relief from sanctions and variation of the order

Ratio Decidendi

The Advisory Note did not legally affect the terms of the guarantee, which remained an unequivocal undertaking governed by English law and the URDG. The Credit Suisse wording was immaterial. The breaches relating to timing and form were not serious or significant and caused no prejudice. Relief from sanctions was appropriate and VPB was permitted to substitute the guarantee for the existing security.

Court Disposition

Appeal allowed

Orders

  • Order of Master Kaye dated 19 April 2021 set aside
  • VPB permitted to substitute the bank guarantee for the existing security