Chancery Division decides that £35 million Partition era dispute over the funds of the Nizam of Hyderabad is justiciable and applies principles of trusts and restitution to award the money to India and others, dismissing the claims of Pakistan.

October 02 2019

High Commissioner for Pakistan in the United Kingdom v Prince Muffakham Jah and Others [2019] EWHC 2551 (Ch) By a judgment handed down on 2nd October 2019, Mr Justice Marcus Smith dismissed claims by Pakistan to a sum now around £35 million (“the Fund”) which had been held for over 70 years by the National Westminster Bank (“the Bank”) in an account in the name of Pakistan’s...

Commercial Court confirms for the first time that the rule against the recovery of reflective loss is a rule of substantive law and cannot therefore displace an otherwise applicable foreign lex causae

September 20 2019

KMG International NV v (1) Melanie Anne Chen (2) Chipper Management Limited [2019] EWHC 2389 (Comm) In proceedings commenced in December 2017, KMG International NV alleges that Ms Chen (a former director and employee of DPH Holding SA) and her vehicle (Chipper Management Limited) asset stripped the DPH group and thereby disabled DPH from satisfying a US$200m arbitral award that KMG had obtained against...

Commercial Court upholds jurisdiction challenge and strikes out claims in respect of the collapse of Russian bank, Promsvyazbank

September 18 2019

Tsareva & Ananyev; Galagaev & Ananyev [2019] EWHC 2414 (Comm) Following the collapse of Promsvyazbank (“PSB”) in 2017, a group of the bank’s customers (the Claimants) alleged that PSB’s relationship managers had induced them into using their bank deposits to invest in certain Notes (which ultimately did not pay out).  The Claimants alleged that there was a fraudulent...

Cayman CA confirms dismissal of US$2bn claim by Madoff feeder fund

September 17 2019

Primeo Fund (In Official Liquidation) v (1) Bank of Bermuda (Cayman) Limited (2) HSBC Securities Services (Luxembourg) SA Following a two-week appeal hearing in late 2018, the Cayman Islands Court of Appeal (Beatson, Birt and Field JJA) has upheld the dismissal of a US$2bn professional negligence claim against HSBC arising out of the Madoff investment fraud. The judgment is notable for, among other...