VNESHPROMBANK LLC v GEORGY IVANOVICH BEDZHAMOV

VNESHPROMBANK LLC v GEORGY IVANOVICH BEDZHAMOV

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 in timing and form were not serious or significant, caused no prejudice, and did not justify refusal of relief from sanctions. The appellant was entitled to substitute the guarantee for the existing cash security.

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 Refusing Relief From Sanctions and Variation of Consent Order
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 Refusing Relief From Sanctions and Variation of Consent Order

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 in timing and form were serious or significant so as to justify refusal of relief from sanctions
  3. 3 Whether the court should permit substitution of the guarantee for cash security

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 in timing and form were not serious or significant, caused no prejudice, and did not justify refusal of relief from sanctions. The appellant was entitled to substitute the guarantee for the existing cash security.

Court Disposition

Appeal allowed

Orders

  • The order of Master Kaye is set aside.
  • Vneshprombank LLC is permitted to substitute the bank guarantee for the existing security for costs.