Ovcharenko & Anor v Investuk Ltd & Anglo-Sino Capital Partners Ltd [2017] EWHC 2114 (QB) (16 June 2017)

Ovcharenko & Anor v Investuk Ltd & Anglo-Sino Capital Partners Ltd [2017] EWHC 2114 (QB) (16 June 2017)

D2 has no real prospect of successfully defending the claim as liability under section 39(3) FSMA is statutory and not dependent on agency or the arbitration clause. D2 is not a party to the arbitration agreement and cannot rely on it to stay proceedings. D2 also failed to act promptly in seeking to set aside the default judgment. The applications are dismissed.

Citation
[2017] EWHC 2114 (QB)
Parties
Claimant: Anna Ovcharenko; Claimant: Yury Moskaltsov; Defendant: Investuk Ltd; Defendant: Anglo-Sino Capital Partners Ltd
Jurisdiction
England and Wales
Judgment Date
16 June 2017
Procedural Posture
Civil / Application to Set Aside Default Judgment and Application for Stay Under Arbitration Act 1996 S.9
Outcome
Applications dismissed
Legal Topics
Default Judgment, Arbitration Clause, Appointed Representative Liability, Section 39 Financial Services and Markets Act 2000, Setting Aside Judgment, Agency
Financial Services Law Contract Law Civil Procedure Default Judgment Arbitration Clause Appointed Representative Liability Section 39 Financial Services and Markets Act 2000 Setting Aside Judgment +1 more

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Parties

Anna Ovcharenko

Claimant

Yury Moskaltsov

Claimant

Investuk Ltd

Defendant

Anglo-Sino Capital Partners Ltd

Defendant

Procedural Posture

Civil / Application to Set Aside Default Judgment and Application for Stay Under Arbitration Act 1996 S.9

Legal Issues

  1. 1 Whether the default judgment against the second defendant (D2) should be set aside under CPR 13.3
  2. 2 Whether D2 can rely on the arbitration clause in the client agreement to stay proceedings under Arbitration Act 1996 s.9
  3. 3 Whether D2 is liable under section 39(3) of the Financial Services and Markets Act 2000 for the acts of D1

Ratio Decidendi

D2 has no real prospect of successfully defending the claim as liability under section 39(3) FSMA is statutory and not dependent on agency or the arbitration clause. D2 is not a party to the arbitration agreement and cannot rely on it to stay proceedings. D2 also failed to act promptly in seeking to set aside the default judgment. The applications are dismissed.

Court Disposition

Applications dismissed

Orders

  • Application to set aside default judgment refused
  • Application for stay under Arbitration Act 1996 s.9 refused