Fonu v Demirel & Anor

Fonu v Demirel & Anor

The presence of assets within the jurisdiction is not a pre-condition for enforcement of a foreign judgment under CPR 6.20(9). The claims pursued by TMSF, although transferred from Turkish banks and labelled as public receivables under Turkish law, were private law claims vindicated in Turkish civil courts and are not barred by the public law exception. England is the appropriate forum for enforcement. However, as there are no assets in England and disclosures have been made, the freezing injunction should be discharged.

Parties
Claimant: Tasarruf Mevduati Sigorta Fonu; First Defendant: Yahya Murat Demirel; Second Defendant: Merrill Lynch International Bank Limited
Jurisdiction
England and Wales
Judgment Date
21 December 2006
Procedural Posture
Civil Enforcement of Foreign Judgment / Application to Set Aside Permission to Serve Out of Jurisdiction and Discharge Freezing Injunction
Outcome
Permission to serve out of the jurisdiction set aside for two judgments; proceedings continue for the $30 million judgment; freezing injunction discharged.
Legal Topics
Enforcement of Foreign Judgments, Jurisdiction, Public Law Exception, Freezing Injunction, Forum Conveniens
Conflict of Laws Banking Law Civil Procedure Enforcement of Foreign Judgments Jurisdiction Public Law Exception Freezing Injunction Forum Conveniens

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Parties

Tasarruf Mevduati Sigorta Fonu

Claimant

Yahya Murat Demirel

First Defendant

Merrill Lynch International Bank Limited

Second Defendant

Procedural Posture

Civil Enforcement of Foreign Judgment / Application to Set Aside Permission to Serve Out of Jurisdiction and Discharge Freezing Injunction

Legal Issues

  1. 1 Whether the presence of assets within the jurisdiction is a pre-condition for enforcement of a foreign judgment under CPR 6.20(9)
  2. 2 Whether the claim to enforce Turkish judgments by TMSF is barred by the public law exception
  3. 3 Whether England is the proper forum for enforcement

Ratio Decidendi

The presence of assets within the jurisdiction is not a pre-condition for enforcement of a foreign judgment under CPR 6.20(9). The claims pursued by TMSF, although transferred from Turkish banks and labelled as public receivables under Turkish law, were private law claims vindicated in Turkish civil courts and are not barred by the public law exception. England is the appropriate forum for enforcement. However, as there are no assets in England and disclosures have been made, the freezing injunction should be discharged.

Court Disposition

Permission to serve out of the jurisdiction set aside for two judgments; proceedings continue for the $30 million judgment; freezing injunction discharged.

Orders

  • Proceedings stand as regards the $30 million judgment.
  • Order granting permission to serve out of the jurisdiction set aside in relation to the other judgments.