Skatteforvaltningen v Solo Capital Partners Llp [2022] EWCA Civ 234 (25 February 2022)

Skatteforvaltningen v Solo Capital Partners Llp [2022] EWCA Civ 234 (25 February 2022)

SKAT's claims, although framed as private law actions for deceit, fraudulent misrepresentation, and related equitable claims, are in substance attempts to enforce Denmark's sovereign right to tax and to recover sums under Danish revenue law. As such, they fall within Dicey Rule 3 and are inadmissible in English courts. The Brussels Recast Regulation does not override Dicey Rule 3, as the rule is a substantive rule of English law and applies even where the claims are classified as 'civil and commercial matters' under the Regulation. The claims are therefore barred in their entirety, except as conceded in relation to ED&F Man.

Citation
[2022] EWCA Civ 234
Parties
Claimant / Appellant: SKATTEFORVALTNINGEN (The Danish Customs and Tax Divisions); Defendant / Respondent: SOLO CAPITAL PARTNERS LLP (In Special Administration); Defendant / Respondent: ED&F Man Capital Markets Ltd; Defendant / Respondent: DWF Defendants; Defendant / Respondent: Messrs Knott & Hoogewerf; Defendant / Respondent: PS/GoC Defendants; Defendant / Respondent: SMB Defendants; Defendant / Respondent: John Devonshire; Defendant / Respondent: Alexander Korner / Korner Unternehmensgruppe GMBH (formerly CEKA INVEST GMBH); Defendant / Respondent: Alba Brown; Defendant / Respondent: Gavin Brown; Defendant / Respondent: Guenther Klar; Defendant / Respondent: North Channel Bank; Defendant / Respondent: Anthony Mark Patterson
Jurisdiction
England and Wales
Judgment Date
25 February 2022
Procedural Posture
Civil Appeal / Court of Appeal Judgment on Preliminary Issue
Outcome
Appeal dismissed
Legal Topics
Revenue Rule, Jurisdiction of English Courts, Enforcement of Foreign Revenue Laws, Fraudulent Misrepresentation, Unlawful Means Conspiracy, Equitable Claims, Brussels Recast Regulation, Lugano Convention
Conflict of Laws Civil Procedure Fraud Revenue Rule Jurisdiction of English Courts Enforcement of Foreign Revenue Laws Fraudulent Misrepresentation Unlawful Means Conspiracy +3 more

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Parties

SKATTEFORVALTNINGEN (The Danish Customs and Tax Divisions)

Claimant / Appellant

SOLO CAPITAL PARTNERS LLP (In Special Administration)

Defendant / Respondent

ED&F Man Capital Markets Ltd

Defendant / Respondent

DWF Defendants

Defendant / Respondent

Messrs Knott & Hoogewerf

Defendant / Respondent

PS/GoC Defendants

Defendant / Respondent

SMB Defendants

Defendant / Respondent

John Devonshire

Defendant / Respondent

Alexander Korner / Korner Unternehmensgruppe GMBH (formerly CEKA INVEST GMBH)

Defendant / Respondent

Alba Brown

Defendant / Respondent

Gavin Brown

Defendant / Respondent

Guenther Klar

Defendant / Respondent

North Channel Bank

Defendant / Respondent

Anthony Mark Patterson

Defendant / Respondent

Procedural Posture

Civil Appeal / Court of Appeal Judgment on Preliminary Issue

Legal Issues

  1. 1 Does Dicey Rule 3 (the revenue rule) bar SKAT's claims as inadmissible in English courts?
  2. 2 Are SKAT's claims 'civil and commercial matters' under the Brussels Recast Regulation, or 'revenue matters' excluded from its scope?
  3. 3 Does the Brussels-Lugano regime override Dicey Rule 3 for defendants domiciled in relevant jurisdictions?

Ratio Decidendi

SKAT's claims, although framed as private law actions for deceit, fraudulent misrepresentation, and related equitable claims, are in substance attempts to enforce Denmark's sovereign right to tax and to recover sums under Danish revenue law. As such, they fall within Dicey Rule 3 and are inadmissible in English courts. The Brussels Recast Regulation does not override Dicey Rule 3, as the rule is a substantive rule of English law and applies even where the claims are classified as 'civil and commercial matters' under the Regulation. The claims are therefore barred in their entirety, except as conceded in relation to ED&F Man.

Court Disposition

Appeal dismissed

Orders

  • SKAT's claims are inadmissible in the English courts by operation of Dicey Rule 3.
  • Claims against all defendants, except as conceded in relation to ED&F Man, are dismissed.