Smith, Re (Ruling - Piggott condition) (Rev 1)

Smith, Re (Ruling - Piggott condition) (Rev 1)

There is a compelling case for extending the receivership order to preserve property potentially available for confiscation, but given the real prospect that some assets may belong to innocent third parties, it is just and convenient to include a modified Piggott condition, leaving open the possibility that the SFO may be ordered to bear receivership costs if its claim to the property fails.

Parties
Applicant: Phoenix & Minardi; Respondent: Harbour II; Respondent: Joint Liquidators; Respondent/claimant to Property: Stewarts Law; Prosecutor/applicant: Serious Fraud Office (SFO); Receiver: Receivers; Defendant: Dr Gerald Smith
Jurisdiction
England and Wales
Judgment Date
07 December 2017
Procedural Posture
Application in Criminal Confiscation Proceedings / Ruling on Extension of Receivership Order and Inclusion of Piggott Condition
Outcome
Receivership order extended with inclusion of modified Piggott condition.
Legal Topics
Receivership Orders, Confiscation Proceedings, Third Party Property Rights, Costs of Receivership, Article 1 Protocol 1 ECHR
Criminal Law Asset Forfeiture Civil Procedure Receivership Orders Confiscation Proceedings Third Party Property Rights Costs of Receivership Article 1 Protocol 1 ECHR

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Parties

Phoenix & Minardi

Applicant

Harbour II

Respondent

Joint Liquidators

Respondent

Stewarts Law

Respondent/claimant to Property

Serious Fraud Office (SFO)

Prosecutor/applicant

Receivers

Receiver

Dr Gerald Smith

Defendant

Procedural Posture

Application in Criminal Confiscation Proceedings / Ruling on Extension of Receivership Order and Inclusion of Piggott Condition

Legal Issues

  1. 1 Whether to extend the scope of the receivership order over shares held by various parties
  2. 2 Whether to include a modified Piggott condition to protect third party property rights regarding receivership costs

Ratio Decidendi

There is a compelling case for extending the receivership order to preserve property potentially available for confiscation, but given the real prospect that some assets may belong to innocent third parties, it is just and convenient to include a modified Piggott condition, leaving open the possibility that the SFO may be ordered to bear receivership costs if its claim to the property fails.

Court Disposition

Receivership order extended with inclusion of modified Piggott condition.

Orders

  • Receivership order extended to specified shares and assets.
  • Receivers authorised to draw remuneration and expenses from receivership property, subject to later determination of ultimate liability for costs under the modified Piggott condition.