JSC BTA Bank v Ablyazov & Ors
2014
COURT OF APPEAL (CRIMINAL DIVISION)
United Kingdom
CORAM
- LORD JUSTICE MOORE-BICK
- LORD JUSTICE CHRISTOPHER CLARKE
Areas of Law
- Commercial Law
- Equity and Trusts
- Property and Real Estate Law
2014
COURT OF APPEAL (CRIMINAL DIVISION)
United Kingdom
CORAM
AI Generated Summary
The core issue was the ownership of shares in Dregon Land, linked to Mr. Ablyazov, who allegedly stole from JSC BTA Bank. Despite various transactions and legal orders, the court held that there was a good arguable case for Mr. Ablyazov retaining beneficial ownership. Jurisdiction to include these shares within freezing and receivership orders was affirmed, but expanding claims related to collusion required formal proceedings.
Judgment
The Hon. Mr Justice Popplewell :
Introduction
The main application before the Court is that of the Claimant (“the Bank”) seeking disclosure from the First and Second Respondents (“Mr Ablyazov” and “Mr Shalabayev”) of documents relating to their assets which would attract legal professional privilege unless falling within the iniquity exception to such privilege, and which are currently held by the Third to Fifth Respondents (“Clyde & Co”, “Stephenson Harwood” and “Addleshaw Goddard” respectively) as their solicitors or former solicitors.
The disclosure sought is of “all documents provided to or produced for or by Clyde & Co LLP, Stephenson Harwood LLP and/or Addleshaw Goddard LLP as remain within their sole or joint control which (in whole or in part) concern or contain information about (i) the current and/or former assets of Messrs Ablyazov and/or Shalabayev and/or (ii) any prospective or actual injunction [in respect of such assets] against Messrs Ablyazov and/or Shalabayev.”
There are ancillary applications by the Bank for declaratory and preservation relief. There are cross applications by Mr Ablyazov concerning evidence in the Bank’s applications.
The Proceedings
The proceedings by the Bank against Mr Ablyazov have occupied the Courts in England extensively over the last five years. For present purposes the following summary is sufficient.
The Bank is a bank in Kazakhstan, of which Mr Ablyazov was Chairman from May 2005 until early February 2009. On 2 February 2009 the State of Kazakhstan, through a sovereign wealth fund, effectively took control of the Bank when, according to the evidence of the Bank, there was significant concern as to the ability of the Bank to continue as a going concern. Mr Ablyazov was removed from his position and fled to London. The Bank has remained majority owned by the State of Kazakhstan throughout the relevant subsequent period although Mr Ablyazov alleges that a sale to private interests closely associated with the government has recently been agreed.
Shortly after nationalisation of the Bank, in early February 2009, Mr Ablyazov and Mr Shalabayev (together with others) instructed Clyde & Co.
On 13 August 2009 the Bank commenced these proceedings against Mr Ablyazov and others, claiming that he had misappropriated US$295 million pursuant to a fraudulent scheme. Other proceedings followed in this Court and the Chancery Division. It was alleged that Mr Ablyazov had treated the Bank as if it were his ow