Koza Ltd & Anor v Akcil & Ors [2019] EWCA Civ 891 (23 May 2019)

Koza Ltd & Anor v Akcil & Ors [2019] EWCA Civ 891 (23 May 2019)

The Court of Appeal held that the negative declaration that ICSID funding was not in the ordinary and proper course of business should be discharged, as the authenticity of the SPA was in serious doubt but not conclusively determined, and the merits of the arbitration were not so poor as to preclude funding. However, a positive declaration could not be granted due to unresolved doubts about the SPA's authenticity. For the extradition expenses, the court held that the payment could fall within the legal expenses exception if for the company's benefit, but the judge's finding that Mr Ipek could pay his own fees was not overturned; however, the availability of alternative funding was not...

Citation
[2019] EWCA Civ 891
Parties
Claimant/appellant: Koza Ltd; Claimant: Hamdi Akin Ipek; Defendant/respondent: Mustafa Akcil; Defendant: Hayrullah Dagistan; Defendant: Mahmut Hikmet Keles; Defendant: Hamza Yanik; Defendant: Arif Yalcin; Defendant: Koza Altin Istemeleri AS
Jurisdiction
England and Wales
Judgment Date
23 May 2019
Procedural Posture
Civil Appeal / Court of Appeal Judgment on Appeals From High Court (chancery Division) Orders
Outcome
Appeal allowed in part; negative declaration on ICSID funding discharged; no positive declaration granted; extradition expenses appeal dismissed.
Legal Topics
Freezing Injunctions, Ordinary and Proper Course of Business, Corporate Governance, Legal Expenses, Extradition, Investment Arbitration Funding
Company Law Civil Procedure Injunctions Freezing Injunctions Ordinary and Proper Course of Business Corporate Governance Legal Expenses Extradition +1 more

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 2 Authorities cited 10 Party arguments 2 Amounts and remedies 3
Sign in to unlock

Parties

Koza Ltd

Claimant/appellant

Hamdi Akin Ipek

Claimant

Mustafa Akcil

Defendant/respondent

Hayrullah Dagistan

Defendant

Mahmut Hikmet Keles

Defendant

Hamza Yanik

Defendant

Arif Yalcin

Defendant

Koza Altin Istemeleri AS

Defendant

Procedural Posture

Civil Appeal / Court of Appeal Judgment on Appeals From High Court (chancery Division) Orders

Legal Issues

  1. 1 Whether proposed funding by Koza Ltd for ICSID arbitration is in the ordinary and proper course of its business under court undertakings
  2. 2 Whether payment by Koza Ltd of legal fees for Mr Ipek's extradition defence is in the ordinary and proper course of business and/or for the company's benefit under undertakings

Ratio Decidendi

The Court of Appeal held that the negative declaration that ICSID funding was not in the ordinary and proper course of business should be discharged, as the authenticity of the SPA was in serious doubt but not conclusively determined, and the merits of the arbitration were not so poor as to preclude funding. However, a positive declaration could not be granted due to unresolved doubts about the SPA's authenticity. For the extradition expenses, the court held that the payment could fall within the legal expenses exception if for the company's benefit, but the judge's finding that Mr Ipek could pay his own fees was not overturned; however, the availability of alternative funding was not...

Court Disposition

Appeal allowed in part; negative declaration on ICSID funding discharged; no positive declaration granted; extradition expenses appeal dismissed.

Orders

  • Negative declaration that ICSID funding was not in the ordinary and proper course of business is discharged.
  • No positive declaration granted regarding ICSID funding.