On 28 August 2026, Richard Smith J granted an injunction restraining the proposed sale of the 1751 oil-on-canvas, “Susanna and the Elders” by Pompeo Batoni.
The dispute arose in the context of the Claimants’ fraud claims for over $1 billion and the broader dispute over the assets of the late Oleg Bourlakov. The claimants, Loudmila and Veronica Bourlakova, allege that Mr Bourlakov and other defendants conspired to place assets beyond the reach of divorce proceedings initiated by Loudmila in 2018 and that the remaining defendants have continued that conspiracy following his death.
The Batoni painting in issue on the application is owned through a Panamanian company Hydrangea, to which Loudmila Bourlakova brings proprietary claims.
Hydrangea has, since 5 June 2026, been the subject of a proprietary injunction granted by Richard Smith J against Cantucci, a Panamanian foundation which also claims to own Hydrangea, restraining it from dealing with its shareholding Hydrangea and requiring it, to the best of its ability, to prevent Hydrangea and its subsidiaries dealing with their assets subject to certain exceptions. In support of the injunction Cantucci was further required to provide information on the assets held by its subsidiaries, including Hydrangea.
On 18 August 2026, Cantucci notified Mrs Bourlakova that Hydrangea’s subsidiary, EISA, intended to sell the Batoni. It was also asserted that, absent such a sale, Cantucci would be at risk of insolvency. Mrs Bourlakova applied urgently to prevent the sale, arguing that it was at a significant undervalue and that no sale should be permitted while Cantucci had failed to provide any information about the sale itself, nor complied with the information obligations in the underlying injunction.
In an ex tempore judgment, Richard Smith J granted the order sought. The Judge noted (at [31] to [35]) that Cantucci had failed to provide “cogent evidence” supporting the need for the sale, including the asserted risks of insolvency. The Court was “simply in no position to assess the level of risk”. The information provided by Cantucci as to the basis of the valuation and the sale process was “opaque” such that the Court could not discount the concerns of undervalue.
Cantucci had also seemingly failed to comply with the information requirements in the order which would enable the court to scrutinise the need for the sale, including failure to provide any affidavit at all, which “raise[d] genuine questions as to whether Cantucci can be funded through other assets or other assets might be more conveniently for sale”.
The only cogent evidence of irremediable harm was that of Mrs Bourlakova. It was therefore just and convenient to restrain the sale until further order, with Cantucci to be provided one final opportunity to regularise its position before the Court and apply to set aside or vary the injunctions against it.
Patrick Harty and Matthew Hoyle acted for Mrs Bourlakova on the application, instructed by Alexandra Whiston-Dew of Mishcon de Reya LLP.
Neil Kitchener KC, Michael Fealy KC, Patricia Burns, Daniel Fletcher, James Gardner and Tom Foxton also act for the Claimants, including Mrs Bourlakova, on the claim.
The judgment recording Richard Smith J’s reasons granting the injunction on 5 June 2026 can be viewed below.
View Judgment