Marlwood Commercial Inc v Kozeny & Ors [2006] EWHC 872 (Comm) (28 April 2006)

Marlwood Commercial Inc v Kozeny & Ors [2006] EWHC 872 (Comm) (28 April 2006)

The court found that the claimants' claims are tainted by illegality due to their involvement or acquiescence in bribery and corruption of Azeri officials, as evidenced by guilty pleas and admissions in related US criminal proceedings. As a result, the claims are unenforceable under English law, and the proceedings have no real prospect of success. The freezing orders were obtained without full and frank disclosure and must be discharged.

Citation
[2006] EWHC 872 (Comm)
Parties
Claimant: Marlwood Commercial Inc; Claimant: Omega Group Holdings Limited; Claimant: Pine Street Investments Limited; Claimant: Helendale Trading Corporation; Claimant: Pinford Portfolio Inc; Claimant: Telos Finance Limited; Claimant: Pharos Finance Limited; Claimant: Water Street Management Limited; Defendant: Viktor Kozeny; Defendant: Charles Towers-Clark; Defendant: Oily Rock Group Limited; Defendant: The Minaret Group Limited
Jurisdiction
England and Wales
Judgment Date
28 April 2006
Procedural Posture
Commercial Court Civil Claim / Application to Lift Stay, Strike Out Proceedings, and Discharge Freezing Orders
Outcome
Proceedings dismissed and freezing orders discharged
Legal Topics
Freezing Injunctions, Fraudulent Misrepresentation, Breach of Fiduciary Duty, Bribery and Corruption, Illegality in Contract, Constructive Trusts, Conspiracy, Breach of Contract
Commercial Law Contract Law Equity and Trusts Fraud International Law Freezing Injunctions Fraudulent Misrepresentation Breach of Fiduciary Duty +5 more

Case Brief

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Parties

Marlwood Commercial Inc

Claimant

Omega Group Holdings Limited

Claimant

Pine Street Investments Limited

Claimant

Helendale Trading Corporation

Claimant

Pinford Portfolio Inc

Claimant

Telos Finance Limited

Claimant

Pharos Finance Limited

Claimant

Water Street Management Limited

Claimant

Viktor Kozeny

Defendant

Charles Towers-Clark

Defendant

Oily Rock Group Limited

Defendant

The Minaret Group Limited

Defendant

Procedural Posture

Commercial Court Civil Claim / Application to Lift Stay, Strike Out Proceedings, and Discharge Freezing Orders

Legal Issues

  1. 1 Whether the proceedings should be dismissed or struck out for illegality and lack of prospect of success
  2. 2 Whether the worldwide freezing orders should be discharged
  3. 3 Whether the claimants' claims are unenforceable due to involvement in bribery and corruption

Ratio Decidendi

The court found that the claimants' claims are tainted by illegality due to their involvement or acquiescence in bribery and corruption of Azeri officials, as evidenced by guilty pleas and admissions in related US criminal proceedings. As a result, the claims are unenforceable under English law, and the proceedings have no real prospect of success. The freezing orders were obtained without full and frank disclosure and must be discharged.

Court Disposition

Proceedings dismissed and freezing orders discharged

Orders

  • Stay lifted
  • Actions dismissed/struck out