JSC Mezhdunarodniy Promyshlenniy Bank & Anor v Pugachev & Ors [2017] EWHC 1847 (Ch) (13 July 2017)

JSC Mezhdunarodniy Promyshlenniy Bank & Anor v Pugachev & Ors [2017] EWHC 1847 (Ch) (13 July 2017)

Exceptional circumstances, including proven breaches of court orders, unpurged contempt, and risk of non-payment, justify imposing conditions for hearing Mr Pugachev's jurisdiction challenge and set aside application. Conditions include payment of costs into solicitors' client account and disclosure of funding source, but not mandatory attendance for cross-examination.

Citation
[2017] EWHC 1847 (Ch)
Parties
Claimant: JSC Mezhdunarodniy Promyshlenniy Bank; Claimant: State Corporation 'Deposit Insurance Agency'; Defendant: Sergei Victorovich Pugachev; Defendant: KEA Trust Company Limited; Defendant: Finetree Company Limited; Defendant: Bramerton Company Limited; Defendant: Bluering Company Limited; Defendant: Maru Limited; Defendant: Hapori Limited; Defendant: Miharo Limited; Defendant: Arotau Limited; Defendant: Luxury Consulting Limited; Defendant: Victor Pugachev; Defendant: Alexis Sergeevich Pugachev; Defendant: Ivan Sergeevich Pugachev; Defendant: Maria Sergeevna Pugachev
Jurisdiction
England and Wales
Judgment Date
13 July 2017
Procedural Posture
Chancery Division Civil Claim / Interlocutory Hearing on Conditions for Jurisdiction Challenge and Set Aside Application
Outcome
Application to challenge jurisdiction and set aside default judgment will only be heard if Mr Pugachev complies with conditions.
Legal Topics
Freezing Orders, Contempt of Court, Jurisdiction Challenge, Costs Orders, Disclosure of Funding Sources, Trust Sham Allegations
Civil Procedure Trusts and Equity Insolvency Freezing Orders Contempt of Court Jurisdiction Challenge Costs Orders Disclosure of Funding Sources +1 more

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Parties

JSC Mezhdunarodniy Promyshlenniy Bank

Claimant

State Corporation 'Deposit Insurance Agency'

Claimant

Sergei Victorovich Pugachev

Defendant

KEA Trust Company Limited

Defendant

Finetree Company Limited

Defendant

Bramerton Company Limited

Defendant

Bluering Company Limited

Defendant

Maru Limited

Defendant

Hapori Limited

Defendant

Miharo Limited

Defendant

Arotau Limited

Defendant

Luxury Consulting Limited

Defendant

Victor Pugachev

Defendant

Alexis Sergeevich Pugachev

Defendant

Ivan Sergeevich Pugachev

Defendant

Maria Sergeevna Pugachev

Defendant

Procedural Posture

Chancery Division Civil Claim / Interlocutory Hearing on Conditions for Jurisdiction Challenge and Set Aside Application

Legal Issues

  1. 1 Should conditions be imposed for hearing Mr Pugachev's jurisdiction challenge and set aside application?
  2. 2 Is Mr Pugachev required to attend for cross-examination as a condition?
  3. 3 Should Mr Pugachev pay costs into solicitors' client account as a condition?

Ratio Decidendi

Exceptional circumstances, including proven breaches of court orders, unpurged contempt, and risk of non-payment, justify imposing conditions for hearing Mr Pugachev's jurisdiction challenge and set aside application. Conditions include payment of costs into solicitors' client account and disclosure of funding source, but not mandatory attendance for cross-examination.

Court Disposition

Application to challenge jurisdiction and set aside default judgment will only be heard if Mr Pugachev complies with conditions.

Orders

  • Mr Pugachev must pay £35,000 for claimants' costs and £25,000 for infant children's costs into Hughmans' solicitors' client account by 4pm on 24 July 2017.
  • Mr Pugachev must file and serve affidavit disclosing ultimate source of funds for legal expenses, with supporting documents, by 4pm on 24 July 2017.