Tchenguiz & Ors v Grant Thornton UK LLP & Ors

Tchenguiz & Ors v Grant Thornton UK LLP & Ors

The proceedings against Kaupthing are barred by Article 116 of the Icelandic Bankruptcy Act, which is incorporated into English law by Regulation 5 of the 2004 Regulations, and thus must be stayed or dismissed. The claims do not fall within the Article 1(2)(b) exception to the Lugano Convention, as they are not...

Source-derived case information.

Parties
Respondents/claimants: Vincent Aziz Tchenguiz & Ors; Defendant: Grant Thornton UK LLP; Defendant: Stephen John Akers; Defendant: Hossein Hamedani; Applicants/defendants: Kaupthing Bank hf; Applicants/defendants: Jóhannes Rúnar Jóhannsson; Third Party: William Procter
Jurisdiction
England and Wales
Judgment Date
01 July 2015
Procedural Posture
Commercial Court Application / Ruling on Application to Dismiss or Stay Proceedings for Want of Jurisdiction And/or Under Insolvency Law
Outcome
Application by Kaupthing succeeds on the insolvency ground; application for stay or dismissal by both Applicants on the jurisdiction ground fails.
Legal Topics
Cross Border Insolvency, Jurisdiction Under Lugano Convention, Effect of EEA Insolvency Measures, Vicarious Liability, Tort Claims Against Insolvency Office Holders
Insolvency Law Private International Law Civil Procedure Cross Border Insolvency Jurisdiction Under Lugano Convention Effect of EEA Insolvency Measures Vicarious Liability Tort Claims Against Insolvency Office Holders

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Parties

Vincent Aziz Tchenguiz & Ors

Respondents/claimants

Grant Thornton UK LLP

Defendant

Stephen John Akers

Defendant

Hossein Hamedani

Defendant

Kaupthing Bank hf

Applicants/defendants

Jóhannes Rúnar Jóhannsson

Applicants/defendants

William Procter

Third Party

Procedural Posture

Commercial Court Application / Ruling on Application to Dismiss or Stay Proceedings for Want of Jurisdiction And/or Under Insolvency Law

Legal Issues

  1. 1 Whether proceedings against an Icelandic bank in insolvency can be brought in England under the Lugano Convention or are barred by Icelandic law as incorporated by the 2004 Regulations
  2. 2 Whether the claims fall within the exception in Article 1(2)(b) of the Lugano Convention (bankruptcy/winding-up) and are thus outside the Convention's scope

Ratio Decidendi

The proceedings against Kaupthing are barred by Article 116 of the Icelandic Bankruptcy Act, which is incorporated into English law by Regulation 5 of the 2004 Regulations, and thus must be stayed or dismissed. The claims do not fall within the Article 1(2)(b) exception to the Lugano Convention, as they are not proceedings relating to the winding-up of an insolvent company but are tort claims not deriving directly from the insolvency process.

Court Disposition

Application by Kaupthing succeeds on the insolvency ground; application for stay or dismissal by both Applicants on the jurisdiction ground fails.

Orders

  • Proceedings against Kaupthing are to be stayed or dismissed as barred by Article 116 of the Icelandic Bankruptcy Act as incorporated by the 2004 Regulations.
  • Claims against both Applicants (Kaupthing and JJ) are within the Lugano Convention and not excluded by Article 1(2)(b).