Michael John Harvey v Santander UK PLC
[2023] EWHC 2947 (KB)
Ildar Uzbekov v Revolut Limited
25 January 2024
[2024] EWHC 98 (KB)
High Court
A man's bank account was closed due to money laundering suspicions. He sued, not for the lost money (he got it back), but for a court declaration saying the bank was wrong. The judge threw out the case, saying it was too expensive and wouldn't really help anyone. There are better ways to handle these kinds of issues, like going to a financial regulator.
Key Facts
- •Revolut, a digital payment service, closed Ildar Uzbekov's account in 2020 based on suspicions of money laundering from media reports.
- •Uzbekov suffered no financial loss but sought nominal damages and a declaration that Revolut had no good reason to suspect him of money laundering.
- •Uzbekov brought the claim three years after the account closure.
- •Revolut argued the claim was wasteful and disproportionate litigation.
- •Revolut's standard terms allowed account closure in exceptional circumstances, including suspected fraud or reputational damage.
Legal Principles
Declaratory relief is discretionary and requires a real and present dispute; it must serve a useful purpose.
CPR 40.20, Financial Services Authority v Rourke [2002] CP Rep 14, Rolls Royce plc v Unite The Union [2009] EWCA Civ 387, Aikens LJ's summary at [120], Zamir & Woolf on Declaratory Judgments (4th ed., 2011)
Summary judgment can be granted if there is no real prospect of success.
CPR 24.3, Easyair Ltd v Opal Telecom [2009] EWHC 339 (Ch), AC Ward & Sons Ltd v Catlin (Five) Ltd [2009] EWCA Civ 1098, Lawrence v Associated Newspapers Ltd [2023] EWHC 2789 (KB)
A claim can be struck out if it discloses no reasonable grounds or is an abuse of process, considering the overriding objective of dealing with cases justly and at proportionate cost.
CPR 3.4(2), CPR 1.1(1), Jameel v Dow Jones & Co Inc. [2005] EWCA Civ
Claims for nominal damages are not automatically entitled to adjudication; the court considers proportionality and resource allocation.
Jameel v Dow Jones & Co Inc. [2005] EWCA Civ, Surrey County Council v Bredero Homes Ltd [1993] 1 WLR 1361, Sullivan v Bristol Film Studios Ltd [2012] EWCA Civ 570, Constantine v Imperial Hotels [1944] 1 KB 693, Clark v Adams [2024] EWHC 62 (KB)
Outcomes
Revolut's application to strike out the Particulars of Claim was granted.
The court found no real prospect of Uzbekov succeeding in obtaining declaratory relief; the claim was deemed an abuse of process due to disproportionate costs and limited practical benefit.
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