VICTOR PISANTE v GEORGE LOGOTHETIS

VICTOR PISANTE v GEORGE LOGOTHETIS

Mr Logothetis, acting for Libra, made a false representation to Mr Pisante that Lomar would contribute US$40 million in 'cash and ships' as equity to the KKR joint venture, when in fact only ships were contributed and Lomar took cash out. This misrepresentation was made knowingly or recklessly, induced Swindon to roll over its ICBC cash and surrender ETFA 2 for a 30% derivative interest, and caused loss. Swindon is entitled to rescission of ETFA 3, return of US$6.25 million, and further relief to be determined. No-reliance clause bars non-fraudulent misrepresentation claims.

Parties
Claimant: Victor Pisante; Claimant: Swindon Holdings & Finance Limited; Claimant: BCA Shipping Investment Corporation; Claimant: Castor Navigation Limited; Defendant: George Logothetis; Defendant: Lomar Corporation Limited; Defendant: Lomar Shipmanagement Limited; Defendant: Libra Holdings Limited
Jurisdiction
England and Wales
Judgment Date
28 January 2022
Procedural Posture
Commercial Court Claim (deceit/fraudulent Misrepresentation) / Final Judgment After Full Trial
Outcome
Judgment for Swindon (claimant) against Libra and Mr Logothetis for deceit; rescission of ETFA 3; monetary relief granted; further relief to be determined; judgment for Swindon against Libra for €500,000 on Piraeus Bank claim; other claims dismissed or not pursued.
Legal Topics
Deceit, Fraudulent Misrepresentation, Rescission, Damages, Joint Venture, Shipping Investments
Commercial Law Contract Law Tort Law Deceit Fraudulent Misrepresentation Rescission Damages Joint Venture +1 more

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Parties

Victor Pisante

Claimant

Swindon Holdings & Finance Limited

Claimant

BCA Shipping Investment Corporation

Claimant

Castor Navigation Limited

Claimant

George Logothetis

Defendant

Lomar Corporation Limited

Defendant

Lomar Shipmanagement Limited

Defendant

Libra Holdings Limited

Defendant

Procedural Posture

Commercial Court Claim (deceit/fraudulent Misrepresentation) / Final Judgment After Full Trial

Legal Issues

  1. 1 Whether Mr Logothetis made fraudulent misrepresentations to induce Mr Pisante/Swindon to invest in the Lomar-KKR joint venture; Whether the representations were false and made with knowledge or recklessness as to their truth; Whether Swindon is entitled to rescission and/or damages for deceit; Whether any additional monetary relief is due for surrender of ETFA 2; Whether a no-reliance clause bars non-fraudulent misrepresentation claims.

Ratio Decidendi

Mr Logothetis, acting for Libra, made a false representation to Mr Pisante that Lomar would contribute US$40 million in 'cash and ships' as equity to the KKR joint venture, when in fact only ships were contributed and Lomar took cash out. This misrepresentation was made knowingly or recklessly, induced Swindon to roll over its ICBC cash and surrender ETFA 2 for a 30% derivative interest, and caused loss. Swindon is entitled to rescission of ETFA 3, return of US$6.25 million, and further relief to be determined. No-reliance clause bars non-fraudulent misrepresentation claims.

Court Disposition

Judgment for Swindon (claimant) against Libra and Mr Logothetis for deceit; rescission of ETFA 3; monetary relief granted; further relief to be determined; judgment for Swindon against Libra for €500,000 on Piraeus Bank claim; other claims dismissed or not pursued.

Orders

  • Rescission of ETFA 3 between Swindon and Libra
  • Libra to pay Swindon US$6.25 million plus interest (equitable discretion)