Deutsche Bank AG v Sebastian Holdings Incorporated & Anor
2014
COMMERCIAL COURT
United Kingdom
CORAM
- MR JUSTICE COOKE
Areas of Law
- Civil Procedure
- Corporate Law
2014
COMMERCIAL COURT
United Kingdom
CORAM
AI Generated Summary
The judgment by Mr Justice Cooke on November 8, 2013, resulted in a significant award against SHI and costs in favor of DBAG. SHI, controlled and directed by Mr Vik, failed to pay the judgment, leading to jurisdictional challenges. The court found Mr Vik accountable for costs, establishing principles on non-party costs orders, material non-disclosure, and jurisdictional validity under section 51. Mr Vik’s improper conduct and control over SHI's litigation and financial practices justified the costs order.
Judgment
Mr Justice Cooke:
Introduction
On 8th November 2013, following trial, I gave judgment against the defendant (SHI) in the sum of US$243,023,089 and awarded the claimant (DBAG) 85% of its costs on the indemnity basis, requiring SHI to make an interim payment on account of costs of £34,517.115.30. These sums were to be paid by 4pm on 22nd November 2013. I refused permission to appeal and any stay of execution. Grounds of Appeal have been filed with the Court of Appeal but no stay of execution has been sought from it.
SHI has not paid the Judgment Debt or the Interim Costs and has said that it has insufficient funds to pay a fraction of the interim costs order. The defendant for costs purposes only, (Mr Vik) has made it clear that he will not put SHI in funds to pay the sums due.
On 3rd December 2013 I gave permission, on an application without notice, for Mr Vik to be joined by DBAG as a party to the proceedings for the purposes of costs alone and gave permission for service out of the jurisdiction upon him of an application for an order for payment by him of costs pursuant to section 51 of the Senior Courts Act 1981. I also gave directions for the service of any evidence upon which Mr Vik might wish to rely in opposition to the Non-Party Costs Application and for any challenge to the court’s jurisdiction. The court’s jurisdiction later became the subject of challenge on various grounds including (inter alia) the fact that permission was given to serve the proceedings by leaving the relevant documents at an address in Greenwich, Connecticut, in the USA.
On the 30th January 2014 I upheld Mr Vik’s challenge to service upon him in that way, without deciding any of the other jurisdictional objections which he had raised. On that day I amended the order that I had previously made on 3rd December 2013, on the basis that service would be effected in accordance with the Hague Convention upon Mr Vik at his residence in Monaco. Under the terms of that order, Mr Vik was given 28 days from the date of service of the Non-Party Costs Application to file at court and serve on DBAG any evidence upon which he wished to rely in opposition to the application or to the court’s jurisdiction. That time limit was extended in a consent order to 14th April 2014. Seventeen witness statements were filed by the parties for the purpose of this application within the timescale permitted by my order and on 9th June a further four witness statements were served by SHI in conn