Rogachev v Goryainov [2024] EWHC 2436 (Ch) (26 September 2024)

Rogachev v Goryainov [2024] EWHC 2436 (Ch) (26 September 2024)

The court found that the true acquisition cost of V177 was around US$22m as stated in the Register, supported by contemporaneous evidence and witness testimony. The Aminievskoye payment was not returned and must be treated as a drawing by Mr Goryainov. Capital expenditure for both parties should be determined by contemporaneous accounting records, with cash capital expenditure for Mr Rogachev to be determined by agreed process. Profits and drawings are to be assessed using market proxies where accounting records are unreliable. The value of retained sites is to be determined as at 30 June 2023 using the income method. The court determined the detailed issues but left the final balancing...

Citation
[2024] EWHC 2436 (Ch)
Parties
Claimant: Andrey Rogachev; Defendant: Mikhail Goryainov
Jurisdiction
England and Wales
Judgment Date
26 September 2024
Procedural Posture
Commercial Joint Venture Dispute (account and Payment) / High Court Trial Judgment
Outcome
Detailed issues determined; parties to calculate and agree balancing payment in light of judgment. Any disagreement to be resolved at a consequential hearing.
Legal Topics
Joint Venture Termination, Accounting Between Partners, Balancing Payment, Valuation of Assets, Capital Expenditure, Drawings and Profits, Forensic Accounting
Commercial Law Equity Company Law Joint Venture Termination Accounting Between Partners Balancing Payment Valuation of Assets Capital Expenditure +2 more

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Parties

Andrey Rogachev

Claimant

Mikhail Goryainov

Defendant

Procedural Posture

Commercial Joint Venture Dispute (account and Payment) / High Court Trial Judgment

Legal Issues

  1. 1 What is the true acquisition cost of V177?
  2. 2 Was the Aminievskoye payment returned?
  3. 3 How should capital expenditure be calculated for each party?

Ratio Decidendi

The court found that the true acquisition cost of V177 was around US$22m as stated in the Register, supported by contemporaneous evidence and witness testimony. The Aminievskoye payment was not returned and must be treated as a drawing by Mr Goryainov. Capital expenditure for both parties should be determined by contemporaneous accounting records, with cash capital expenditure for Mr Rogachev to be determined by agreed process. Profits and drawings are to be assessed using market proxies where accounting records are unreliable. The value of retained sites is to be determined as at 30 June 2023 using the income method. The court determined the detailed issues but left the final balancing...

Court Disposition

Detailed issues determined; parties to calculate and agree balancing payment in light of judgment. Any disagreement to be resolved at a consequential hearing.

Orders

  • Parties to calculate the balancing payment based on the court's findings.
  • Any unresolved issues to be addressed at a consequential hearing involving experts if necessary.