JSC Mezhdunarodniy Promyshlenniy Bank & Anor v Pugachev & Ors

JSC Mezhdunarodniy Promyshlenniy Bank & Anor v Pugachev & Ors

Given Mr Pugachev's history of contempt, non-compliance, and the strong evidence that his application is an abuse of process, the court will impose as conditions for hearing his jurisdiction challenge: payment of £35,000 for claimants' costs and £25,000 for the infant children's costs into his solicitors' client account, and disclosure of the ultimate source of his legal funding. The court will not require his attendance for cross-examination as a condition. These conditions are justified to prevent prejudice to the respondents and in light of the likelihood that legal funding is from frozen assets.

Parties
Claimant: JSCMEZHDUNARODNIY 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
Civil / Interlocutory Application Ruling
Outcome
Application to impose conditions on hearing of jurisdiction challenge granted in part
Legal Topics
Freezing Orders, Contempt of Court, Jurisdiction Challenge, Costs, Disclosure of Assets, Trusts as Shams
Civil Procedure Trusts and Equity Insolvency Freezing Orders Contempt of Court Jurisdiction Challenge Costs Disclosure of Assets +1 more

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Parties

JSCMEZHDUNARODNIY 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

Civil / Interlocutory Application Ruling

Legal Issues

  1. 1 Whether conditions should be imposed on the hearing of Mr Pugachev's jurisdiction challenge application, including payment of costs, disclosure of source of legal funding, and attendance for cross-examination
  2. 2 Whether the application to challenge jurisdiction is an abuse of process due to lateness and dishonesty
  3. 3 Whether the court has power to impose such conditions in the context of a jurisdiction challenge

Ratio Decidendi

Given Mr Pugachev's history of contempt, non-compliance, and the strong evidence that his application is an abuse of process, the court will impose as conditions for hearing his jurisdiction challenge: payment of £35,000 for claimants' costs and £25,000 for the infant children's costs into his solicitors' client account, and disclosure of the ultimate source of his legal funding. The court will not require his attendance for cross-examination as a condition. These conditions are justified to prevent prejudice to the respondents and in light of the likelihood that legal funding is from frozen assets.

Court Disposition

Application to impose conditions on hearing of jurisdiction challenge granted in part

Orders

  • Mr Pugachev must pay £35,000 for claimants' costs and £25,000 for infant children's costs into his solicitors' client account by 4.00 pm on 24 July 2017 as a condition of his application being heard.
  • Mr Pugachev must file and serve an affidavit disclosing the ultimate source of his legal funding, with supporting documents, by 4.00 pm on 24 July 2017 as a condition of his application being heard.