Vale SA & Ors v Steinmetz & Ors

Vale SA & Ors v Steinmetz & Ors

Neither the LCIA arbitration award nor the Share Purchase Deed (SPD) preclude the claimants' proprietary rescission trust claim against Balda and Nysco. The claimants have a properly arguable case that a rescission trust arose over traceable proceeds, and it is at least arguable that Vale International, as payor, could be the beneficiary. The summary judgment application is dismissed, and the relevant defences are struck out.

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
Civil Commercial / Summary Judgment Application by Seventh and Eighth Defendants (balda and Nysco) Seeking Dismissal of Proprietary Trust Claim
Outcome
Summary judgment application dismissed; declaration and striking out of defences to be ordered.
Legal Topics
Rescission of Contract, Constructive Trust, Fraudulent Misrepresentation, Tracing of Proceeds, Summary Judgment, Restitution, Issue Estoppel
Equity and Trusts Commercial Law Fraud Rescission of Contract Constructive Trust Fraudulent Misrepresentation Tracing of Proceeds Summary Judgment +2 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

Civil Commercial / Summary Judgment Application by Seventh and Eighth Defendants (balda and Nysco) Seeking Dismissal of Proprietary Trust Claim

Legal Issues

  1. 1 Whether the claimants have a properly arguable proprietary claim (rescission trust) against Balda and Nysco for traceable proceeds of a fraudulently procured contract
  2. 2 Whether the LCIA arbitration award or the Share Purchase Deed (SPD) preclude the proprietary claim
  3. 3 Who is the proper beneficiary of the rescission trust: Vale or Vale International

Ratio Decidendi

Neither the LCIA arbitration award nor the Share Purchase Deed (SPD) preclude the claimants' proprietary rescission trust claim against Balda and Nysco. The claimants have a properly arguable case that a rescission trust arose over traceable proceeds, and it is at least arguable that Vale International, as payor, could be the beneficiary. The summary judgment application is dismissed, and the relevant defences are struck out.

Court Disposition

Summary judgment application dismissed; declaration and striking out of defences to be ordered.

Orders

  • Summary judgment application by Balda and Nysco dismissed
  • Declaration that neither the SPD nor the LCIA Award affords Balda or Nysco any defence to the rescission trust claim