Fiona Trust & Holding Corporation v Privalov & Ors

Fiona Trust & Holding Corporation v Privalov & Ors

The 2005 freezing order improperly prevented the defendants from investing in newbuildings, causing loss of a real and substantial chance to make profits; damages are awarded at 50% of claimed profits, after credits and adjustments. The 2007 order caused no loss. The claimants' application to set aside the inquiry or withhold relief on equitable grounds is dismissed as no material fraud or misconduct was established.

Parties
Claimant: Fiona Trust & Holding Corporation; Defendant: Yuri Privalov & Others
Jurisdiction
England and Wales
Judgment Date
26 August 2016
Procedural Posture
Commercial Court Inquiry / Post Liability Judgment, Damages Inquiry and Application to Set Aside Inquiry Order
Outcome
Damages awarded to defendants for losses caused by the 2005 freezing order; claimants' application to set aside inquiry or withhold relief dismissed.
Legal Topics
Freezing Orders, Damages Inquiry, Undertaking in Damages, Fraud, Unclean Hands, Remoteness, Mitigation, Loss of Chance, Asset Protection
Civil Procedure Equity Commercial Law Freezing Orders Damages Inquiry Undertaking in Damages Fraud Unclean Hands +4 more

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Parties

Fiona Trust & Holding Corporation

Claimant

Yuri Privalov & Others

Defendant

Procedural Posture

Commercial Court Inquiry / Post Liability Judgment, Damages Inquiry and Application to Set Aside Inquiry Order

Legal Issues

  1. 1 Whether the freezing orders caused compensable loss to the defendants
  2. 2 Whether the order for inquiry into damages should be set aside for fraud or withheld on equitable grounds
  3. 3 Assessment of damages for loss of profits under freezing orders

Ratio Decidendi

The 2005 freezing order improperly prevented the defendants from investing in newbuildings, causing loss of a real and substantial chance to make profits; damages are awarded at 50% of claimed profits, after credits and adjustments. The 2007 order caused no loss. The claimants' application to set aside the inquiry or withhold relief on equitable grounds is dismissed as no material fraud or misconduct was established.

Court Disposition

Damages awarded to defendants for losses caused by the 2005 freezing order; claimants' application to set aside inquiry or withhold relief dismissed.

Orders

  • Defendants entitled to damages calculated at 50% of claimed newbuildings profits, plus returns on notional resale proceeds invested with Wegelin, less credits for interest earned and returns on funds used for instalments.
  • Claimants' application to set aside inquiry order or withhold relief on equitable grounds dismissed.