Byers & Ors v Samba Financial Group

Byers & Ors v Samba Financial Group

The Bank's application to revoke the disclosure order was refused because there was no material change in circumstances, the Bank's risk of prosecution was overstated, and the importance of disclosure for a fair trial outweighed the risk. The Bank's Defence was struck out and it was debarred from defending all issues except certain legal issues that could fairly be tried without its disclosure. The Court declined to order a split trial or send a letter of request to the Saudi authorities, finding such steps unjustified and unlikely to be effective.

Parties
Claimant: Mark Byers; Claimant: Hugh Dickson (as Joint Official Liquidators of Saad Investments Company Limited); Claimant: Saad Investments Company Limited (in liquidation); Defendant: Samba Financial Group
Jurisdiction
England and Wales
Judgment Date
08 April 2020
Procedural Posture
Civil Commercial/trusts / Interlocutory Application and Case Management Ruling
Outcome
Defence struck out and Bank debarred from defending, except on specified legal issues; applications for revocation of disclosure order, split trial, and letter of request refused.
Legal Topics
Disclosure Obligations, Knowing Receipt, Constructive Trust, Foreign Law Compliance, Strike Out Applications, Case Management, Illegality Defence, Limitation of Actions
Trusts and Equity Conflict of Laws Banking Law Insolvency Disclosure Obligations Knowing Receipt Constructive Trust Foreign Law Compliance +4 more

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Parties

Mark Byers

Claimant

Hugh Dickson (as Joint Official Liquidators of Saad Investments Company Limited)

Claimant

Saad Investments Company Limited (in liquidation)

Claimant

Samba Financial Group

Defendant

Procedural Posture

Civil Commercial/trusts / Interlocutory Application and Case Management Ruling

Legal Issues

  1. 1 Whether the Bank should be relieved from its obligation to give standard disclosure due to Saudi Arabian law restrictions and SAMA's directions
  2. 2 Whether the Bank's Defence should be struck out for non-compliance with disclosure orders
  3. 3 Whether certain issues can be fairly tried without the Bank's disclosure

Ratio Decidendi

The Bank's application to revoke the disclosure order was refused because there was no material change in circumstances, the Bank's risk of prosecution was overstated, and the importance of disclosure for a fair trial outweighed the risk. The Bank's Defence was struck out and it was debarred from defending all issues except certain legal issues that could fairly be tried without its disclosure. The Court declined to order a split trial or send a letter of request to the Saudi authorities, finding such steps unjustified and unlikely to be effective.

Court Disposition

Defence struck out and Bank debarred from defending, except on specified legal issues; applications for revocation of disclosure order, split trial, and letter of request refused.

Orders

  • Bank's Defence struck out and Bank debarred from defending all issues except: (i) governing law of the September Transfer, (ii) effect of Saudi law on SICL's rights, (iii) whether the claim fails under Saudi law, (iv) whether the claim fails under Cayman/English law, (v) quantum of Disputed Securities' value.
  • Bank's applications to revoke disclosure order, for a split trial, and for a letter of request to the Saudi Ministry of Foreign Affairs refused.