Key Facts
- •Kingdom Bank Corporation (Claimant), a Dominica-registered offshore bank, seeks a Norwich Pharmacal order against Moorwand Ltd (Defendant), an English electronic money institution (EMI), for disclosure of information relating to an account held by the Defendant.
- •The Claimant alleges that approximately €1.4 million of its and its customers' money, initially paid to Safe Payment Solutions s.r.o. (SPS), a Czech electronic money issuer, ended up in the Defendant's account and is now missing.
- •SPS went into liquidation, and the Claimant argues that the Defendant is implicated in the loss of funds.
- •The Defendant opposes the application, citing jurisdictional issues, a lack of grounds for Norwich Pharmacal relief, and a preference for alternative disclosure methods (CPR 31.16).
Legal Principles
Norwich Pharmacal Order requirements: A wrong must have been committed; an order is needed to pursue the wrongdoer; and the respondent must be implicated and able to provide relevant information.
Mitsui & Co Ltd v Nexen Petroleum UK Ltd [2005] EWHC 625 (Ch)
Good arguable case test for Norwich Pharmacal relief: More than barely capable of serious argument, but not necessarily a >50% chance of success.
Ramilos Trading Ltd v Buyanovsky [2016] EWHC 3175 (Comm)
Norwich Pharmacal jurisdiction is exceptional and requires necessity; alternative means of obtaining information are relevant.
Mitsui & Co Ltd v Nexen Petroleum UK Ltd [2005] EWHC 625 (Ch)
Electronic Money Regulations 2011 (EM Regulations): Govern the operation of EMIs, including the safeguarding of customer funds. Funds received by an EMI are not held on trust; electronic money holders do not retain proprietary or equitable interests.
In re ipagoo LLP (in liquidation) [2022] EWCA Civ 302
Outcomes
The Claimant's claim for a Norwich Pharmacal order is dismissed.
The Claimant failed to establish the necessary conditions for a Norwich Pharmacal order. They did not demonstrate a good arguable case of wrongdoing against the Defendant, nor that the requested information was necessary to pursue a claim against any wrongdoer. Alternative avenues for obtaining the information existed.