Langbar International Ltd v Rybak & Ors

Langbar International Ltd v Rybak & Ors

The court held that Langbar is entitled to require the Rybak defendants to conduct a further search for trading records relating to post-6 June 2005 Langbar share sales, including documents held by UBS and Wegelin, and to disclose any documents located, as such disclosure is relevant to pleaded claims for account of profits and forfeiture of unsold shares. The court found insufficient evidence to conclude the documents are not within the defendants' control and ordered a search rather than direct disclosure. The court also ordered the joinder of Magdalena Rybak as a defendant and granted a proprietary injunction over €645,000 admitted share sale proceeds.

Parties
Claimant: Langbar International Limited; Defendant: Marios Rybak; Defendant: CMC Crown Management Limited; Defendant: Izabela Rybak; Defendant: SCI Atol; Defendant: Jean-Pierre Regli; Defendant: Abraham Arad; Defendant: Lambert Financial Investments Limited; Defendant: Magdalena Rybak
Jurisdiction
England and Wales
Judgment Date
31 August 2007
Procedural Posture
Civil / Interlocutory Application for Specific Disclosure, Joinder of Defendant, and Interim Proprietary Injunction
Outcome
Application granted in part
Legal Topics
Specific Disclosure, Constructive Trust, Fiduciary Duty, Fraud, Freezing Orders, Joinder of Parties, Proprietary Injunction
Civil Procedure Company Law Equity Specific Disclosure Constructive Trust Fiduciary Duty Fraud Freezing Orders +2 more

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Parties

Langbar International Limited

Claimant

Marios Rybak

Defendant

CMC Crown Management Limited

Defendant

Izabela Rybak

Defendant

SCI Atol

Defendant

Jean-Pierre Regli

Defendant

Abraham Arad

Defendant

Lambert Financial Investments Limited

Defendant

Magdalena Rybak

Defendant

Procedural Posture

Civil / Interlocutory Application for Specific Disclosure, Joinder of Defendant, and Interim Proprietary Injunction

Legal Issues

  1. 1 Whether the Rybak defendants should be ordered to conduct a search and disclose trading records relating to Langbar share sales post-6 June 2005
  2. 2 Whether the Rybak defendants have 'control' over trading documents held by UBS and Wegelin
  3. 3 Whether Magdalena Rybak should be joined as a defendant and subjected to a proprietary injunction regarding €645,000 share sale proceeds

Ratio Decidendi

The court held that Langbar is entitled to require the Rybak defendants to conduct a further search for trading records relating to post-6 June 2005 Langbar share sales, including documents held by UBS and Wegelin, and to disclose any documents located, as such disclosure is relevant to pleaded claims for account of profits and forfeiture of unsold shares. The court found insufficient evidence to conclude the documents are not within the defendants' control and ordered a search rather than direct disclosure. The court also ordered the joinder of Magdalena Rybak as a defendant and granted a proprietary injunction over €645,000 admitted share sale proceeds.

Court Disposition

Application granted in part

Orders

  • Rybak defendants ordered to conduct a search for trading records relating to post-6 June 2005 Langbar share sales and disclose any documents located.
  • Like order made in relation to D & M shares.