Wang v Darby [2021] EWHC 3054 (Comm) (17 November 2021)

Wang v Darby [2021] EWHC 3054 (Comm) (17 November 2021)

The reciprocal sale and buy-back structure of the contracts, as evidenced by the parties' communications and pleaded case, is fundamentally inconsistent with the existence of any trust (express, resulting, or constructive) over the Tezos. The proprietary claims are bound to fail as a matter of law. The freezing order cannot be continued on a proprietary basis.

Citation
[2021] EWHC 3054 (Comm)
Parties
Claimant: Zi Wang; Defendant: Graham Darby
Jurisdiction
England and Wales
Judgment Date
17 November 2021
Procedural Posture
Commercial Court Contract/property / Summary Judgment and Continuation of Freezing Order
Outcome
Proprietary claims dismissed; summary judgment granted for defendant on proprietary claims; continuation of freezing order refused on proprietary basis.
Legal Topics
Express Trusts, Resulting Trusts, Constructive Trusts, Fiduciary Duties, Cryptocurrency as Property, Summary Judgment, Freezing Orders
Commercial Law Trusts Law Cryptocurrency Law Express Trusts Resulting Trusts Constructive Trusts Fiduciary Duties Cryptocurrency as Property +2 more

Case Brief

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Parties

Zi Wang

Claimant

Graham Darby

Defendant

Procedural Posture

Commercial Court Contract/property / Summary Judgment and Continuation of Freezing Order

Legal Issues

  1. 1 Whether the contracts between the parties gave rise to an express, resulting, or constructive trust over the transferred Tezos cryptocurrency; Whether the defendant owed fiduciary duties in respect of the Tezos; Whether the proprietary claims have a real prospect of success; Whether the freezing order should be continued

Ratio Decidendi

The reciprocal sale and buy-back structure of the contracts, as evidenced by the parties' communications and pleaded case, is fundamentally inconsistent with the existence of any trust (express, resulting, or constructive) over the Tezos. The proprietary claims are bound to fail as a matter of law. The freezing order cannot be continued on a proprietary basis.

Court Disposition

Proprietary claims dismissed; summary judgment granted for defendant on proprietary claims; continuation of freezing order refused on proprietary basis.

Orders

  • Summary judgment granted in favour of Mr Darby on all proprietary claims.
  • Continuation of the worldwide freezing order and proprietary injunction refused on proprietary basis.