Anglo-Eastern Trust Ltd. & Anor v Kermanshahchi [2002] EWCA Civ 198 (22nd February, 2002)

Anglo-Eastern Trust Ltd. & Anor v Kermanshahchi [2002] EWCA Civ 198 (22nd February, 2002)

A conditional order requiring payment into court must not be set at a level that the defendant cannot realistically pay, as this would unjustly stifle the defence. The original order for £1m was excessive given the evidence of means, and should be replaced by a more modest sum (£75,000) that the defendant and his family could reasonably be expected to raise, thereby balancing the claimant's interests and the defendant's right to defend.

Citation
[2002] EWCA Civ 198
Parties
First Claimant/respondent: The Anglo-Eastern Trust Limited; Second Claimant: Sir David Alliance; Defendant/appellant: Roohallah Kermanshahchi
Jurisdiction
England and Wales
Procedural Posture
Civil Appeal / Appeal From High Court (summary Judgment/conditional Order)
Outcome
Appeal allowed in part; conditional order varied
Legal Topics
Summary Judgment, Conditional Orders, Right to Fair Trial, Payment Into Court, Defence Striking Out, Access to Justice
Civil Procedure Contract Law Summary Judgment Conditional Orders Right to Fair Trial Payment Into Court Defence Striking Out Access to Justice

Case Brief

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Parties

The Anglo-Eastern Trust Limited

First Claimant/respondent

Sir David Alliance

Second Claimant

Roohallah Kermanshahchi

Defendant/appellant

Procedural Posture

Civil Appeal / Appeal From High Court (summary Judgment/conditional Order)

Legal Issues

  1. 1 Whether the judge was correct to make a conditional order requiring the defendant to pay £1m into court as a condition of defending the claim
  2. 2 Whether the conditional order would stifle the defence due to inability to pay
  3. 3 Whether new evidence of means should be admitted on appeal

Ratio Decidendi

A conditional order requiring payment into court must not be set at a level that the defendant cannot realistically pay, as this would unjustly stifle the defence. The original order for £1m was excessive given the evidence of means, and should be replaced by a more modest sum (£75,000) that the defendant and his family could reasonably be expected to raise, thereby balancing the claimant's interests and the defendant's right to defend.

Court Disposition

Appeal allowed in part; conditional order varied

Orders

  • Judge Hegarty's order for payment of £1m into court set aside
  • Substituted order: Defendant to pay £75,000 into court as condition of defending the claim