La Micro Group (UK) Ltd & Anor v La Micro Group, Inc & Ors

La Micro Group (UK) Ltd & Anor v La Micro Group, Inc & Ors

The English court has jurisdiction to hear the claim as there is a serious issue to be tried regarding the beneficial ownership of shares in an English company, the claim is closely connected to England, and England is the appropriate forum. The 2017 Judgment is not binding on LA Inc, but the Claimants have an arguable case based on estoppel or laches. The existence of related Californian proceedings does not outweigh the connection to England. The claim should proceed as a Part 7 claim due to likely factual disputes.

Parties
Claimant: LA Micro Group (UK) Ltd; Claimant: David Bell; Defendant: LA Micro Group, Inc; Defendant: Roman Frenkel; Defendant: Arkadiy Lyampert
Jurisdiction
England and Wales
Judgment Date
03 June 2020
Procedural Posture
Civil (business and Property Courts) / Application to Set Aside Permission to Serve Out of Jurisdiction / Jurisdictional Challenge
Outcome
Applications disputing jurisdiction dismissed; proceedings to continue as Part 7 claim.
Legal Topics
Jurisdictional Challenge, Declaratory Relief, Trusts of Shares, Estoppel, Laches, Res Judicata, Abuse of Process, Forum Non Conveniens
Private International Law Equity and Trusts Company Law Jurisdictional Challenge Declaratory Relief Trusts of Shares Estoppel Laches +3 more

Case Brief

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Parties

LA Micro Group (UK) Ltd

Claimant

David Bell

Claimant

LA Micro Group, Inc

Defendant

Roman Frenkel

Defendant

Arkadiy Lyampert

Defendant

Procedural Posture

Civil (business and Property Courts) / Application to Set Aside Permission to Serve Out of Jurisdiction / Jurisdictional Challenge

Legal Issues

  1. 1 Whether the English court has jurisdiction to hear the claim regarding beneficial ownership of shares in LA Micro Group (UK) Ltd
  2. 2 Whether there is a serious issue to be tried on the merits
  3. 3 Whether England is the appropriate forum for the dispute

Ratio Decidendi

The English court has jurisdiction to hear the claim as there is a serious issue to be tried regarding the beneficial ownership of shares in an English company, the claim is closely connected to England, and England is the appropriate forum. The 2017 Judgment is not binding on LA Inc, but the Claimants have an arguable case based on estoppel or laches. The existence of related Californian proceedings does not outweigh the connection to England. The claim should proceed as a Part 7 claim due to likely factual disputes.

Court Disposition

Applications disputing jurisdiction dismissed; proceedings to continue as Part 7 claim.

Orders

  • Applications by LA Inc and Mr Frenkel to set aside permission to serve out of jurisdiction are dismissed.
  • The proceedings are to continue as a Part 7 claim, not Part 8.