RECOVERY PARTNERS GP LIMITED & Ors. v IRAKLI RUKHADZE & Ors.

RECOVERY PARTNERS GP LIMITED & Ors. v IRAKLI RUKHADZE & Ors.

The application for an interim payment was refused as a matter of discretion due to lack of good reason for delay, absence of material change of circumstance, and unresolved substantive defences that could significantly limit the quantum of recovery; however, a modest interim payment of US$4.5 million was ordered as a reasonable proportion of the likely minimum judgment.

Parties
Claimant: Recovery Partners GP Limited; Claimant: Revoker LLP; Defendant: Irakli Rukhadze; Defendant: Igor Alexeev; Defendant: Benjamin Marson
Jurisdiction
England and Wales
Judgment Date
31 March 2021
Procedural Posture
Commercial / Interlocutory Application for Interim Payment
Outcome
Application for interim payment largely refused; modest interim payment granted.
Legal Topics
Interim Payment, Account of Profits, Fiduciary Duties, Case Management, Quantum Assessment
Equity Commercial Law Civil Procedure Interim Payment Account of Profits Fiduciary Duties Case Management Quantum Assessment

Case Brief

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Parties

Recovery Partners GP Limited

Claimant

Revoker LLP

Claimant

Irakli Rukhadze

Defendant

Igor Alexeev

Defendant

Benjamin Marson

Defendant

Procedural Posture

Commercial / Interlocutory Application for Interim Payment

Legal Issues

  1. 1 Whether an interim payment should be ordered prior to quantum trial
  2. 2 Scope of account of profits for breach of fiduciary duty
  3. 3 Timing and appropriateness of interlocutory applications in managed litigation

Ratio Decidendi

The application for an interim payment was refused as a matter of discretion due to lack of good reason for delay, absence of material change of circumstance, and unresolved substantive defences that could significantly limit the quantum of recovery; however, a modest interim payment of US$4.5 million was ordered as a reasonable proportion of the likely minimum judgment.

Court Disposition

Application for interim payment largely refused; modest interim payment granted.

Orders

  • Mr Rukhadze to pay US$2.7 million within 28 days.
  • Mr Alexeev to pay US$1.17 million within 28 days.