Vale SA & Ors v Steinmetz & Ors [2020] EWHC 3501 (Comm) (18 December 2020)

Vale SA & Ors v Steinmetz & Ors [2020] EWHC 3501 (Comm) (18 December 2020)

The summary judgment application fails because neither the LCIA Award nor the SPD provide Balda or Nysco with a defence to the claimants' proprietary (rescission trust) claim, and the issue of whether Vale or Vale International is the beneficiary of any rescission trust is properly arguable and should be determined at trial if necessary.

Citation
[2020] EWHC 3501 (Comm)
Parties
Claimant: Vale SA; Claimant: Vale Holdings BV; Claimant: Vale International SA; Defendant: Benjamin Steinmetz; Defendant: Dag Lars Cramer; Defendant: Marcus Struik; Defendant: Asher Avidan; Defendant: Joseph Tchelet; Defendant: David Clark; Defendant: Balda Foundation; Defendant: Nysco Management Corporation
Jurisdiction
England and Wales
Judgment Date
18 December 2020
Procedural Posture
Commercial Court Claim / Summary Judgment Application by Seventh and Eighth Defendants (balda and Nysco)
Outcome
Summary judgment application dismissed
Legal Topics
Rescission of Contract, Constructive Trust, Fraudulent Misrepresentation, Tracing, Restitution, Summary Judgment
Commercial Law Equity and Trusts Fraud Rescission of Contract Constructive Trust Fraudulent Misrepresentation Tracing Restitution +1 more

Case Brief

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Parties

Vale SA

Claimant

Vale Holdings BV

Claimant

Vale International SA

Claimant

Benjamin Steinmetz

Defendant

Dag Lars Cramer

Defendant

Marcus Struik

Defendant

Asher Avidan

Defendant

Joseph Tchelet

Defendant

David Clark

Defendant

Balda Foundation

Defendant

Nysco Management Corporation

Defendant

Procedural Posture

Commercial Court Claim / Summary Judgment Application by Seventh and Eighth Defendants (balda and Nysco)

Legal Issues

  1. 1 Whether the claimants have a properly arguable proprietary claim (rescission trust) against Balda and Nysco as recipients of traceable proceeds of a payment made under a contract procured by fraud
  2. 2 Whether the LCIA arbitration award or the Share Purchase Deed (SPD) defeat the proprietary claim
  3. 3 Whether the beneficiary of any rescission trust is Vale or Vale International

Ratio Decidendi

The summary judgment application fails because neither the LCIA Award nor the SPD provide Balda or Nysco with a defence to the claimants' proprietary (rescission trust) claim, and the issue of whether Vale or Vale International is the beneficiary of any rescission trust is properly arguable and should be determined at trial if necessary.

Court Disposition

Summary judgment application dismissed

Orders

  • Declaration that neither the SPD nor the LCIA Award affords Balda or Nysco any defence to the rescission trust claim
  • Order striking out appropriate parts of Balda and Nysco's Defence