Langbar International Ltd v Rybak & Ors [2007] EWHC 3255 (Ch) (31 August 2007)

Langbar International Ltd v Rybak & Ors [2007] EWHC 3255 (Ch) (31 August 2007)

The court held that the Rybak defendants had not conducted an adequate search for trading records relating to the sale of Langbar shares after 6 June 2005, including documents potentially obtainable from UBS and Wegelin banks. Such documents are relevant to the pleaded issues, particularly for the account of profits and to determine the number of shares sold and proceeds received. The court ordered the Rybak defendants to conduct a proper search and disclose any located documents. The court also ordered the joinder of Magdalena Rybak as an eighth defendant and granted a proprietary injunction over €645,000, which is admitted to be proceeds of share sales, as Langbar has a serious claim to...

Citation
[2007] EWHC 3255 (Ch)
Parties
Claimant: Langbar International Limited; First Defendant: Marios Rybak; Second Defendant: Jean-Pierre Regli; Third Defendant: Abraham Arad; Fourth Defendant: Lambert Financial Investments Limited; Fifth Defendant: CMC Crown Management Limited; Sixth Defendant: Izabela Rybak; Seventh Defendant: SCI Atol; Eighth Defendant: Magdalena Rybak
Jurisdiction
England and Wales
Judgment Date
31 August 2007
Procedural Posture
Chancery Division Civil Claim / Interlocutory Application for Specific Disclosure, Joinder of Party, and Interim Proprietary Injunction
Outcome
Application granted in part
Legal Topics
Specific Disclosure, Constructive Trust, Freezing Orders, Joinder of Parties, Proprietary Injunctions, Fiduciary Duties, Fraud, Disclosure Obligations
Civil Procedure Company Law Equity and Trusts Specific Disclosure Constructive Trust Freezing Orders Joinder of Parties Proprietary Injunctions +3 more

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Parties

Langbar International Limited

Claimant

Marios Rybak

First Defendant

Jean-Pierre Regli

Second Defendant

Abraham Arad

Third Defendant

Lambert Financial Investments Limited

Fourth Defendant

CMC Crown Management Limited

Fifth Defendant

Izabela Rybak

Sixth Defendant

SCI Atol

Seventh Defendant

Magdalena Rybak

Eighth Defendant

Procedural Posture

Chancery Division Civil Claim / Interlocutory Application for Specific Disclosure, Joinder of Party, and Interim Proprietary Injunction

Legal Issues

  1. 1 Whether the Rybak defendants should be ordered to conduct further searches and provide specific disclosure of trading records relating to sales of Langbar shares after 6 June 2005;
  2. 2 Whether Magdalena Rybak should be joined as a defendant and be subject to a proprietary injunction in respect of €645,000;
  3. 3 Whether the Rybak defendants have 'control' over relevant documents held by UBS and Wegelin banks for disclosure purposes;

Ratio Decidendi

The court held that the Rybak defendants had not conducted an adequate search for trading records relating to the sale of Langbar shares after 6 June 2005, including documents potentially obtainable from UBS and Wegelin banks. Such documents are relevant to the pleaded issues, particularly for the account of profits and to determine the number of shares sold and proceeds received. The court ordered the Rybak defendants to conduct a proper search and disclose any located documents. The court also ordered the joinder of Magdalena Rybak as an eighth defendant and granted a proprietary injunction over €645,000, which is admitted to be proceeds of share sales, as Langbar has a serious claim to...

Court Disposition

Application granted in part

Orders

  • Rybak defendants to conduct a search for trading records relating to post-6 June 2005 sales of Langbar shares and disclose any located documents within their control, including those obtainable from UBS and Wegelin.
  • Magdalena Rybak to be joined as eighth defendant.