Tonstate Group Limited & Ors v Edward Wojakovski & Ors
[2024] EWHC 1551 (Ch)
SMA Investment Holdings Ltd v Harbour Fund II LP & Ors
28 February 2023
[2023] EWHC 428 (Comm)
High Court
A long legal battle over money is finally reaching a conclusion. Some people tried to delay things and challenge previous rulings, but the judge said no. The money will now go to the right people, and those who tried to stop it will have to pay extra costs.
Key Facts
- •Disputes originate from dishonest dealings between Gerald Martin Smith and Andrew Ruhan in 2003.
- •Smith has been convicted twice of dishonesty, with a £40m confiscation order.
- •Litigation involves competing claims to assets, with various parties changing alliances.
- •Multiple trials have taken place, resulting in judgments ([2021] EWHC 1272 (Comm), [2021] EWHC 1273 (Comm), [2021] EWHC 2803 (Comm), [2022] EWHC 383 (Comm), [2022] EWHC 1695 (Comm), [2022] EWHC 3053 (Comm), [2023] EWHC 255 (Comm)), some appealed ([2023] EWCA Civ 36).
- •SMA Investment Holdings Ltd (SMA) holds shares on bare trust for the Harbour Trust.
- •Harcus Parker Parties (HPP) seek a transfer of shares from SMA to new trustees.
- •BKV Limited, claiming to be SMA's director, challenges the court's jurisdiction.
- •Minardi Investments Limited intervenes, seeking an adjournment.
- •The court considers the adjournment application, the jurisdiction challenge, and the application to transfer shares.
Legal Principles
Abuse of Process
Inherent jurisdiction of the court
Jurisdiction in Commercial Court
PD6B paragraph 3.1(4) and 3.1(12)
Service out of the jurisdiction
CPR 6.20(1)(c)(i), PD6B
Summary Judgment
CPR 24
Trustee's indemnity and subrogation
Equity
Specific Performance
Equity
Third-Party Costs Order
Section 51 Senior Courts Act 1981
Outcomes
Minardi's adjournment application refused.
Minardi had ample time to prepare; the application is an attempt to relitigate and abuse the court's process.
BKV's jurisdiction challenge dismissed.
SMA is a necessary party; the centre of gravity of the dispute is in England and Wales; the Marshall Islands proceedings appear to be a collateral attack.
Harcus Parker Parties granted summary judgment against SMA.
SMA has no defence to the transfer order; its resistance is an abuse of process.
Worldwide Freezing Order (WFO) against SMA made final.
Consistent with the summary judgment against SMA.
BKV joined to the proceedings for costs purposes.
Arguable basis for a third-party costs order.
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