Group Seven Ltd & Anor v Nasir & Ors

Group Seven Ltd & Anor v Nasir & Ors

The court found that Mr Landman dishonestly assisted breaches of trust by authorising payments from Notable's client account in circumstances where he knew or was reckless as to the lack of underlying transactions, motivated by personal gain. Mr Meduri was not found dishonest but Notable was liable for unconscionable receipt. Mr Louanjli and Mr Elbied dishonestly assisted breaches of trust and conspired with Mr Nobre, and LLB was vicariously liable for Mr Louanjli's acts. Claimants were awarded equitable compensation and tracing remedies. The court applied objective standards of dishonesty and unconscionability, and found vicarious liability based on close connection to employment.

Parties
Claimant: Group Seven Limited; Claimant: Rheingold Management Inc; Claimant: Equity Trading Systems Limited (formerly Larn Ltd); Defendant: Ali Nasir; Defendant: Jong-Kang Yi; Defendant: Notable Services LLP; Defendant: Martin Landman; Defendant: Francesco Meduri; Defendant: LLB Verwaltung (Switzerland) AG (formerly Liechtensteinische Landesbank (Switzerland) Ltd); Defendant: Othman Louanjli; Defendant: Sebastien Elbied; Defendant: Renaissance Limited; Defendant: Bridge Limited
Jurisdiction
England and Wales
Judgment Date
06 October 2017
Procedural Posture
Civil (chancery Division, England & Wales) / Final Judgment After Full Trial
Outcome
Judgment for claimants in part; damages and equitable compensation awarded against certain defendants; some claims dismissed.
Legal Topics
Dishonest Assistance, Knowing Receipt, Breach of Trust, Money Laundering, Vicarious Liability, Conspiracy, Deceit, Solicitors' Accounts Rules, Unconscionable Receipt
Equity and Trusts Fraud Banking Law Professional Negligence Dishonest Assistance Knowing Receipt Breach of Trust Money Laundering +5 more

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Parties

Group Seven Limited

Claimant

Rheingold Management Inc

Claimant

Equity Trading Systems Limited (formerly Larn Ltd)

Claimant

Ali Nasir

Defendant

Jong-Kang Yi

Defendant

Notable Services LLP

Defendant

Martin Landman

Defendant

Francesco Meduri

Defendant

LLB Verwaltung (Switzerland) AG (formerly Liechtensteinische Landesbank (Switzerland) Ltd)

Defendant

Othman Louanjli

Defendant

Sebastien Elbied

Defendant

Renaissance Limited

Defendant

Bridge Limited

Defendant

Procedural Posture

Civil (chancery Division, England & Wales) / Final Judgment After Full Trial

Legal Issues

  1. 1 Whether defendants dishonestly assisted breaches of trust relating to €100 million fraudulently obtained and laundered through a solicitor's client account
  2. 2 Whether defendants are liable for unconscionable receipt of trust property
  3. 3 Whether vicarious liability attaches to LLB for acts of its employee

Ratio Decidendi

The court found that Mr Landman dishonestly assisted breaches of trust by authorising payments from Notable's client account in circumstances where he knew or was reckless as to the lack of underlying transactions, motivated by personal gain. Mr Meduri was not found dishonest but Notable was liable for unconscionable receipt. Mr Louanjli and Mr Elbied dishonestly assisted breaches of trust and conspired with Mr Nobre, and LLB was vicariously liable for Mr Louanjli's acts. Claimants were awarded equitable compensation and tracing remedies. The court applied objective standards of dishonesty and unconscionability, and found vicarious liability based on close connection to employment.

Court Disposition

Judgment for claimants in part; damages and equitable compensation awarded against certain defendants; some claims dismissed.

Orders

  • Judgment for Rheingold Management Inc (assignee of Group Seven) against Ali Nasir and Jong-Kang Yi for €9,179,850.48 each.
  • Judgment for Group Seven against Martin Landman for £173,000 for unconscionable receipt.