His Excellency Sheikh Khalid & Ors v His Excellency Sheikh Hamed Bin Ahmed Al Hamed & Anor
[2024] EWHC 2448 (Comm)
Lakatamia Shipping Company Ltd v Nobu Su (aka Hsin Chi Su aka Nobu Morimoto) & Ors
21 July 2023
[2023] EWHC 1874 (Comm)
High Court
A company won a big lawsuit against a man who then hid his money. They think a lawyer helped him hide the money and are suing the lawyer. The lawyer says the English court shouldn't hear the case because he's from Monaco. The judge disagreed, saying the case should stay in England because the lawyer's actions broke an English court order, and it makes sense to try everyone involved in the same court.
Key Facts
- •Lakatamia Shipping Company Ltd. sued Nobu Su (and others) for breach of contract, obtaining substantial judgments (Cooke Judgments).
- •A worldwide freezing order (Blair Freezing Order) was issued against Su.
- •Su, with the assistance of others, allegedly dissipated assets, including proceeds from the sale of Monaco villas.
- •Maître Zabaldano, a Monégasque lawyer, is accused of aiding in the dissipation of assets by transferring funds in breach of the Blair Freezing Order.
- •Lakatamia brought the current proceedings against Zabaldano, alleging unlawful means conspiracy, intentionally causing damage by unlawful means, and the Marex tort.
- •Zabaldano challenged the court's jurisdiction.
Legal Principles
Service out of the jurisdiction requires a good arguable case within a jurisdictional gateway, a serious issue to be tried on the merits, and England being the appropriate forum.
CPR PD 6B, paragraph 3.1; FS Cairo (Nile Plaza) LLC v. Brownlie [2021] UKSC 45
For jurisdictional challenges, the claimant only needs a plausible evidential basis for the better argument on disputed facts.
Manek v. IIFL Wealth (UK) Ltd [2021] EWCA Civ 264
The 'tort' gateway is satisfied where damage was sustained within the jurisdiction.
CPR PD 6B, r.3.1(9)(a)
'Damage' in the context of the gateway has a wide meaning, encompassing indirect and consequential damage.
Brownlie v FS Cairo (Nile Plaza) LLC [2021] 3 WLR 1011
English judgments are payable in England.
In re A Debtor (No.1838 of 1911) [1912] 1 K.B. 53 (CA)
The 'property' gateway is satisfied where the subject matter of the claim relates wholly or principally to property within the jurisdiction.
CPR PD 6B, r.3.1(11)
The 'necessary or proper party' gateway is satisfied where there's a real issue between claimant and defendant, and another person is a necessary or proper party.
CPR PD 6B, r.3.1(3)
The merits test is whether there's a serious issue to be tried, meaning a real, not fanciful, prospect of success.
Tulip Trading Ltd v. Bitcoin Association for BSV [2023] EWCA Civ 83
In conspiracy claims, much of the evidence is circumstantial, and inferences are drawn from cumulative evidence.
Lakatamia Shipping Corporation v Nobu Su & Others [2021] EWHC 1907
Elements of unlawful means conspiracy: combination, unlawful means, intention to injure, and causation of loss.
Digicel (St Lucia) Ltd v. Cable & Wireless Plc [2010] EWHC 774 (Ch)
For unlawful means conspiracy, an act done deliberately with knowledge of consequences implies intention to injure.
Bourgoin SA v Minister of Agriculture [1986] QB 716
Justification is not a defence to unlawful means conspiracy.
Palmer Birch v. Lloyd [2018] EWHC 2316 (TCC)
Elements of causing loss by unlawful means: intention to cause loss, unlawful means against a third party, and interference with the third party's freedom to deal with the claimant.
Clerk & Lindsell on the Law of Torts
A Quincecare duty of care requires reasonable skill and care in executing a customer's orders, with liability if the bank knew of dishonesty or acted recklessly.
Barclays Bank v Quincecare [1992] 4 All ER 363
Elements of the Marex tort: judgment in claimant's favour, breach of rights under judgment, procurement/ inducement of breach, defendant's knowledge, and defendant's realization of breach.
Lakatamia Shipping Corporation v Nobu Su & Others [2021] EWHC 1907
Forum conveniens considers the forum where the case can be suitably tried for the interests of all parties and the ends of justice.
Vedanta Resources plc v. Lungowe [2020] AC 1045
Outcomes
Zabaldano's jurisdictional challenge dismissed.
The court found that the claims passed through all three jurisdictional gateways, there was a serious issue to be tried on the merits, and England was the appropriate forum.