Commercial Bank of Dubai PSC & Ors v Abdalla Juma Majid Al Sari & Ors
[2023] EWHC 2624 (Comm)
Commercial Bank of Dubai PSC & Ors. v Abdalla Juma Majid Al Sarl & Ors.
10 March 2023
[2023] EWHC 1484 (Comm)
High Court
A bank sued some people for £88 million. Those people didn't respond, so the judge told them to answer or they can't bring up any evidence in their defence.
Key Facts
- •The Commercial Bank of Dubai (the Bank) sought summary judgment against four defendants (the Summary Judgment Defendants) to enforce an £88 million debt based on a Sharjah Federal Court judgment.
- •The Summary Judgment Defendants failed to serve evidence in response to the summary judgment application, despite multiple opportunities and demands.
- •The Bank also brought claims against the defendants alleging fraudulent conduct to avoid enforcement of the Sharjah judgment.
- •Worldwide freezing orders and injunctive relief had been granted against the defendants.
- •The Summary Judgment Defendants had a history of non-compliance with court orders, including evading service and failing to meet asset disclosure obligations.
- •The defendants' jurisdiction challenge did not affect the enforcement claim, as they conceded jurisdiction in their application materials.
Legal Principles
The court has broad discretion to impose sanctions for failing to comply with court orders under CPR 3.1(3)(b).
CPR 3.1(3)(b)
Defences to enforcing a foreign judgment include arguments that the judgment is not final, the court lacked jurisdiction, it was procured by fraud, or it contravenes public policy.
Implicit in the judgment's discussion of potential defences.
Outcomes
The court ordered the Summary Judgment Defendants to serve evidence by 24 March 2023.
The defendants' failure to provide evidence was unjustified, and their stated intention to delay until the jurisdiction challenge was resolved did not comply with court rules. The court was concerned about potential delay and prejudice to the Bank.
The court imposed a sanction: if the evidence is not served by the deadline, the Summary Judgment Defendants would be debarred from adducing evidence on the summary judgment application.
This sanction was chosen to ensure compliance and prevent a last-minute ambush of the Bank. A short, expedited hearing was scheduled to address the consequences of non-compliance and any application for relief from the sanction.
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