Blockchain Optimization SA & Anor v LFE Market Ltd & Ors [2020] EWHC 2027 (Comm) (28 July 2020)

Blockchain Optimization SA & Anor v LFE Market Ltd & Ors [2020] EWHC 2027 (Comm) (28 July 2020)

The failure to disclose the solicitor's prior involvement with the defendants was a material breach of the duty of full and frank disclosure, but was innocent and would not have affected the grant of the injunction; therefore, the freezing injunction should not be discharged. The claimants' pleadings, except for one unsupported allegation, were sufficient to sustain a good arguable case of fraud and should not be struck out. Summary judgment was inappropriate due to factual disputes.

Citation
[2020] EWHC 2027 (Comm)
Parties
Claimant: Blockchain Optimization S. A.; Claimant: Petrochemical Logistics Ltd; Defendant: LFE Market Ltd; Defendant: LFE Group Holdings Limited; Defendant: James (aka Jim) Aylward; Defendant: Benjamin Leigh Hunt; Defendant: White Tiger Global Opportunities Fund; Defendant: White Tiger Asset Management Ltd
Jurisdiction
England and Wales
Judgment Date
28 July 2020
Procedural Posture
Commercial Court Claim / Interlocutory Applications (freezing Injunction, Strike Out, Summary Judgment, Amendment)
Outcome
Claimants' application to continue the injunction granted; defendants' applications to discharge the injunction, strike out, or for summary judgment dismissed except as to one unsupported allegation.
Legal Topics
Freezing Injunctions, Fraudulent Misrepresentation, Unlawful Means Conspiracy, Strike Out Applications, Summary Judgment, Disclosure Obligations
Commercial Law Civil Procedure Fraud Freezing Injunctions Fraudulent Misrepresentation Unlawful Means Conspiracy Strike Out Applications Summary Judgment +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 3 Authorities cited 11 Party arguments 2 Amounts and remedies 5
Sign in to unlock

Parties

Blockchain Optimization S. A.

Claimant

Petrochemical Logistics Ltd

Claimant

LFE Market Ltd

Defendant

LFE Group Holdings Limited

Defendant

James (aka Jim) Aylward

Defendant

Benjamin Leigh Hunt

Defendant

White Tiger Global Opportunities Fund

Defendant

White Tiger Asset Management Ltd

Defendant

Procedural Posture

Commercial Court Claim / Interlocutory Applications (freezing Injunction, Strike Out, Summary Judgment, Amendment)

Legal Issues

  1. 1 Whether the worldwide freezing injunction should be discharged for material non-disclosure
  2. 2 Whether the claimants have a good arguable case of fraud
  3. 3 Whether parts of the claim should be struck out for insufficient pleading of fraud

Ratio Decidendi

The failure to disclose the solicitor's prior involvement with the defendants was a material breach of the duty of full and frank disclosure, but was innocent and would not have affected the grant of the injunction; therefore, the freezing injunction should not be discharged. The claimants' pleadings, except for one unsupported allegation, were sufficient to sustain a good arguable case of fraud and should not be struck out. Summary judgment was inappropriate due to factual disputes.

Court Disposition

Claimants' application to continue the injunction granted; defendants' applications to discharge the injunction, strike out, or for summary judgment dismissed except as to one unsupported allegation.

Orders

  • Injunction continued against D1, D2, and D4
  • Strike out application dismissed except as to the unsupported allegation in paragraph 56