Kenneth Larsson v Revolut Limited
[2024] EWHC 1287 (Ch)
Verdi Law Group P.C. v BNP Paribas S.A. & Ors
18 July 2023
[2023] EWHC 1860 (KB)
High Court
A law firm sued a big bank for a huge amount of money, claiming they were owed it from a complicated deal. The bank said it was all a fake, and showed lots of proof. A judge agreed with the bank and said the law firm had no chance of winning, so the case is over.
Key Facts
- •Verdi Law Group P.C. (Verdi), a US law firm, sued BNP Paribas S.A. (Banque Paribas) and seven others for breach of contract, conspiracy, and negligence.
- •Verdi claimed entitlement to €1.4 billion based on a purported transaction involving a €500 million standby letter of credit.
- •Banque Paribas argued the transaction was a scam, and the documents supporting Verdi's claim were forgeries.
- •The case hinged on the authenticity of emails, a purported bank account screenshot, and SWIFT messages.
- •Verdi presented an IT report which was not considered a formal expert report, while Banque Paribas submitted a compliant expert report.
- •Unrelated proceedings in the US were discontinued by Verdi before the UK case started.
Legal Principles
In summary judgment applications, the court assesses if the claimant has a real prospect of success, considering evidence available and reasonably expected at trial. The court should be cautious in fraud cases, requiring cogent evidence.
Easyair Ltd v Opal Telecom Limited [2009] EWHC 339 (Ch), Foglia v The Family Officer Limited and Others [2021] EWHC 650 (Comm), King v Steifel [2021] EWHC 1045 (Comm)
The court should not conduct a mini-trial but may analyze factual assertions and consider if issues are susceptible to early disposal.
Easyair Ltd v Opal Telecom Limited [2009] EWHC 339 (Ch)
Expert evidence must comply with CPR Part 35.
New Media Distribution Company SEZC Ltd v Konstantin Kagalovsky [2018] EWHC 2742 (Ch)
Res judicata may operate between defendants if there's a conflict of interest, deciding the conflict is necessary for plaintiff relief, and the question was judicially decided.
Spencer Bower & Handley on Res Judicata
Outcomes
Summary judgment granted to Banque Paribas.
Verdi had no real prospect of success. The evidence overwhelmingly demonstrated the falsity of the documents supporting Verdi's claim (the Sparx account, SWIFT messages, and emails). The expert evidence further undermined Verdi's case. The argument regarding other defendants was rejected due to procedural issues and lack of a true conflict of interest.