New Media Distribution Company Sezc Ltd v Kagalovsky [2017] EWHC 2334 (Ch) (26 September 2017)

New Media Distribution Company Sezc Ltd v Kagalovsky [2017] EWHC 2334 (Ch) (26 September 2017)

The defendant is estopped from raising five of the six AE Issues by reason of the New York judgments, as conceded. The proposed amendment to plead a subjective belief as to the purpose of the Dilution is not precluded by issue estoppel or abuse of process, as the specific issue of the defendant's subjective belief was not determined in the New York proceedings. The application to amend is not a very late amendment and is permitted, subject to the general principles governing amendments. The defendant may advance the amended case as to purpose, but is bound by the findings of fact in the New York proceedings on the other issues.

Citation
[2017] EWHC 2334 (Ch)
Parties
Claimant: New Media Distribution Company SEZC Limited; Defendant: Konstantin Grigoryevich Kagalovsky
Jurisdiction
England and Wales
Judgment Date
26 September 2017
Procedural Posture
Chancery Division Civil Claim / Preliminary Issue Determination on Estoppel/abuse of Process and Application to Amend Defence
Outcome
Application to amend defence granted in part; defendant estopped from raising five of six AE Issues; defendant permitted to plead subjective belief as to purpose of Dilution.
Legal Topics
Transactions at Undervalue, Issue Estoppel, Abuse of Process, Foreign Judgments, Section 423 Insolvency Act 1986, Amendment of Pleadings
Insolvency Civil Procedure Conflict of Laws Transactions at Undervalue Issue Estoppel Abuse of Process Foreign Judgments Section 423 Insolvency Act 1986 +1 more

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Parties

New Media Distribution Company SEZC Limited

Claimant

Konstantin Grigoryevich Kagalovsky

Defendant

Procedural Posture

Chancery Division Civil Claim / Preliminary Issue Determination on Estoppel/abuse of Process and Application to Amend Defence

Legal Issues

  1. 1 Whether the defendant is estopped from making certain allegations in his defence by reason of prior New York proceedings and judgments
  2. 2 Whether the defendant's proposed amendments to his defence should be permitted or are precluded by issue estoppel or abuse of process
  3. 3 Whether the purpose pleaded by the defendant in relation to the 'Dilution' transaction can be advanced in light of prior findings

Ratio Decidendi

The defendant is estopped from raising five of the six AE Issues by reason of the New York judgments, as conceded. The proposed amendment to plead a subjective belief as to the purpose of the Dilution is not precluded by issue estoppel or abuse of process, as the specific issue of the defendant's subjective belief was not determined in the New York proceedings. The application to amend is not a very late amendment and is permitted, subject to the general principles governing amendments. The defendant may advance the amended case as to purpose, but is bound by the findings of fact in the New York proceedings on the other issues.

Court Disposition

Application to amend defence granted in part; defendant estopped from raising five of six AE Issues; defendant permitted to plead subjective belief as to purpose of Dilution.

Orders

  • Defendant's application to amend defence allowed as regards subjective belief as to purpose.
  • Defendant estopped from raising five of six AE Issues as pleaded in the Reply.