In the matter of Nicholas Mark Jones
[2023] EWHC 1359 (Ch)
Dr Tanal Mohamed Sabbah v Barbel Christa Abela
11 July 2024
[2024] EWHC 1790 (Ch)
High Court
Someone owed a lot of money and didn't want to pay. They said they didn't live in the UK long enough to be sued and that they were tricked into signing a promise to pay. The judge didn't believe them because they didn't provide enough proof and hadn't given the court all the documents asked for. Because they still used a flat in London, the judge decided they did live in the UK, so they had to pay the money.
Key Facts
- •Bankruptcy petition presented against Ms Abela by Dr Sabbah for US$7,000,000 (£5,820,500) due under a personal guarantee.
- •Ms Abela disputed jurisdiction (lack of residence in the UK for three years prior to the petition) and the debt (alleging an oral representation that the guarantee wouldn't be enforced).
- •Ms Abela failed to comply with multiple court orders for disclosure of documents relating to her residence.
- •Ms Abela signed a personal guarantee with a warning to seek independent legal advice, and a solicitor's letter confirming such advice was given.
- •Ms Abela claimed she relied on an oral representation that the guarantee was a formality, but provided no supporting documentation.
- •The court considered Ms Abela's evidence, cross-examination, and contemporaneous documents.
Legal Principles
Determination of place of residence is fact-sensitive, a multifactorial inquiry considering all evidence cumulatively.
Skjevesland v Geveran Trading Co Ltd (No.4); Portrait v Minai; Reynolds Porter Chamberlain LLP v Khan; PJSC VTB Bank v Laptev
Adverse inferences can be drawn from a debtor's failure to produce relevant documentary evidence.
PJSC VTB Bank v Laptev
A place of residence is a de facto situation; absolute or exclusive use isn't required; a person can have multiple residences.
Skjevesland v Geveran Trading Co Ltd (No.4); Re Brauch; Khan; Al Saud
The burden of proving jurisdiction is on the petitioner.
Minai
Intention to abandon a property as a dwelling is a relevant factor in determining place of residence.
Nordenfelt
Residence connotes some degree of permanence and continuity.
Lakatamia Shipping Company Ltd v Su
Outcomes
The petition was successful; the bankruptcy order was granted.
Ms Abela failed to demonstrate a substantial dispute regarding the debt due to lack of credible evidence supporting her claim of an oral representation and her failure to comply with disclosure orders regarding her residence.
Ms Abela had a place of residence in England and Wales within three years prior to the petition.
Despite Ms Abela's claim of abandoning her London residence, the court found that she continued to use the property, had possessions there, and lacked supporting evidence for her assertion of abandonment; adverse inferences were drawn from her failure to comply with disclosure orders. The court rejected Ms Abela's assertion that she considered Switzerland to be her home.
Similar Cases
Judith Susan Portrait & Anor (as Trustees of the Gatsby Charitable Foundation) v Khadijeh Minai
[2023] EWHC 1605 (Ch)
EFG Private Bank Limited v Kambiz Babaee
[2024] EWHC 444 (Ch)
Mohammed Kamal Ahmed v Elias Hussain & Anor
[2023] EWHC 593 (Ch)
Anthony James Broom v Maria Del Pilar Molina Aguilar
[2024] EWHC 1764 (Ch)