Cosimo Borrelli & Ors v Mutaz Otaibi & Ors
[2024] EWHC 1148 (Comm)
Gela Mikadze & Anor v Dechert LLP & Ors
30 August 2023
[2023] EWHC 2165 (KB)
High Court
Two people sued a US company and others for hacking. The US company refused to be sued in the UK. A UK judge said the evidence was strong enough to make the US company come to the UK court to defend the case.
Key Facts
- •Claimants (Mikadze and Massaad) allege data hacking by or on behalf of Ras Al Khaimah (RAK).
- •A Huawei laptop belonging to the Del Rosso Parties (3rd and 4th Defendants) contained potentially relevant data.
- •The laptop was initially in the possession of the Claimants' solicitors, leading to multiple related legal proceedings.
- •The Del Rosso Parties, US-based, refused service of the Claimants' proceedings.
- •The Claimants seek permission to serve the Del Rosso Parties outside the jurisdiction.
- •Multiple related cases involve allegations of unlawful hacking campaigns by RAK against various individuals.
- •The Claimants' case focuses on information believed to be on the Devices (laptop and hard drives), not the devices themselves.
- •The Claimants' substantive claims are for breach of confidence, misuse of private information, and unlawful processing of personal data.
- •The Del Rosso Parties contend the Claimants have not met the 'serious issue to be tried' test.
- •The Del Rosso Parties argue that they were forced to submit to the jurisdiction by issuing proceedings against Stokoe Partnership.
Legal Principles
Principles for service out applications, requiring a serious issue to be tried, a good arguable case meeting jurisdictional gateways, and forum conveniens.
Altimo Holdings and Investments Limited v Kyrgyz Mobile Telephones Limited [2011] UKPC 7; Abu Dhabi Commercial Bank PJSC v Shetty & Ors [2022] EWHC 529 (Comm)
'Serious issue to be tried' test—same as summary judgment test; focus on particulars of claim and whether, if facts alleged are true, cause of action has real prospect of success.
Okpabi v Royal Dutch Shell plc [2021] UKSC 3
Good arguable case for jurisdictional gateways—requires plausible evidential basis; court takes view on material if reliably possible.
Brownlie v Four Seasons [2017] UKSC 80; Kaefer Aisalamentos v AMS Drilling Mexico [2019] EWCA Civ 10
Submission to jurisdiction—party issuing a claim submits to jurisdiction for counterclaims and related claims; court retains discretion.
Dicey, Morris & Collins on The Conflict of Laws; Union Bank of the Middle East Ltd v Clapham; Derby & Co Ltd v Larsson
Gateway 3—claims against a defendant where there is a real issue and another person is a necessary or proper party.
CPR PD 6B para 3.1(3); Carvill America Inc & Anor v Camperdown UK Ltd [2005] EWCA Civ 645; Altimo Holdings and Investments Limited v Kyrgyz Mobile Telephones Limited [2011] UKPC 7
Outcomes
Permission granted to serve the Del Rosso Parties outside the jurisdiction.
The Claimants satisfied the 'serious issue to be tried' test and established a good arguable case under Gateway 3 of PD 6B para 3.1. England is the forum conveniens, and the Del Rosso Parties' previous submissions to the jurisdiction weighed in favour of the Claimants.