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England and Wales High Court (Chancery Division) Decisions |
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You are here: BAILII >> Databases >> England and Wales High Court (Chancery Division) Decisions >> JSC Mezhdunarodniy Promyshlenniy Bank & Anor v Pugachev [2015] EWHC 1586 (Ch) (05 June 2015) URL: http://www.bailii.org/ew/cases/EWHC/Ch/2015/1586.html Cite as: [2015] EWHC 1586 (Ch) |
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CHANCERY DIVISION
Strand, London, WC2A 2LL |
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B e f o r e :
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(1) JSC MEZHDUNARODNIY PROMYSHLENNIY BANK (2) STATE CORPORATION "DEPOSIT INSURANCE AGENCY" |
Claimants |
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- and – |
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SERGEI VIKTOROVICH PUGACHEV |
Defendant |
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Clare Montgomery QC and Alexander Milner (instructed by Mr D Pashov) for the Defendant
Hearing date: 22 May 2015
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Crown Copyright ©
The Hon. Mr Justice Hildyard :
Scope of judgment
Summary of conclusion
Relevant background
"credible testimony which showed…that their fears were justified and genuine."
" Mr Pugachev led us all a merry dance through the hearing, trying to evade what was the obvious, namely that he had another passport…
…
Whilst he was addressing me, at all times he was in breach of my order and he knew it, because he had a passport which he had not delivered up."
"to ensure compliance with the Trusts Disclosure Order, this Order and any order which may be made on the Cross-Examination Application. "
The application and the Defendant's evidence in support of it
(1) On 23 April 2014 (and thus several weeks before the Claimants commenced proceedings in this jurisdiction) he instructed his French lawyers to start criminal proceedings in Paris against various officials of the Second Claimant ("the DIA") and other Russian individuals complaining of criminal acts of intimidation and extortion allegedly perpetrated against him in France.(2) The senior investigating judge in the Paris Court subsequently appointed two investigating judges to investigate the case.
(3) On 12 May 2015, the Defendant's French lawyers received a summons or "Convocation" directed to him and inviting his attendance at 10 o'clock on 29 May 2015 at the judges' offices in Paris.
(4) The Defendant's French lawyers, in a letter dated 18 May 2015 which has been redacted so that it shows neither their name and address, nor the individual signatory, have stated that the Defendant's personal attendance is "extremely important" because:
(a) the "convocation" signifies that the investigating judges want to interview him with regards to his complaint;(b) being from a judicial authority, "the attendance of the person summoned to appear in Court is mandatory";(c) the interview is "important since its aim is to provide additional details to the judges, to answer their questions, to share elements on the context of the case and above all to strengthen the sincerity of the procedure and the fact that your allegations are well founded, with what is irreplaceable, i.e. a personal contact with the judges";(d) non-attendance could signify a lack of interest and even lead to losing the benefit of the complaint and its termination;(e) video-conferencing is complicated to arrange, more impersonal and less satisfactory, and might not be permitted (depending on the Court's indulgence);(f) a request for postponement could damage the case because the investigating judges have busy schedules, as demonstrated by the year's delay in fixing the present hearing, and "it will be even more complicated to arrange a new hearing", and also because a request to postpone "could be interpreted by the judges as a lack of commitment to the case."(5) In an email to the court from the lawyer acting for the Defendant in this jurisdiction for the limited purposes of this application (Mr D Pashov, a solicitor in the employ of Luxury Consulting Limited, which appears in effect to be the Defendant's private office), it is stated that video conferencing would not be permitted by the French Court unless the Defendant had first applied to this court for the suspension of the Passport Order.
The Claimants' evidence in response
(1) under French law, the Defendant, as a "partie civile", is in effect treated as the complainant, and the complaint automatically triggers an investigation by the "juge d'instruction", who can be equated to an investigating magistrate;(2) a 'partie civile' complaint can only be filed if an initial complaint has been rejected or not actioned for more than three months;
(3) the fact that an investigation is triggered does not connote any view as to its substance, and charges may or may not follow;
(4) it seems that, so far, no charges have been brought (since the DIA would have had to be notified of any);
(5) the appointment of two magistrates (rather than a single one) was almost inevitable in a case involving parties in different jurisdictions;
(6) the attendance of a 'partie civile' is never mandatory, in the sense of the 'convocation' being a binding instruction or order the breach of which would expose the party to a sanction: it is in the nature of a formal invitation offering an opportunity to attend, rather than the equivalent of a witness summons or subpoena;
(7) a 'partie civile' is entitled to request an opportunity to be auditioned by the judge(s). This is not a hearing in the sense of an interlocutory application or trial. It is an 'audition' with the judge(s) in their chambers ("à mon cabinet"): "little more than a meeting or appointment";
(8) video-conferencing is by no means unusual in such proceedings in France, and this would be a "paradigm case" for its use, given the nature of the hearing, which is informational rather than adjudicative.
"a real risk, if Mr Pugachev were to travel to France, that he would be arrested and could be held in prison for a significant period of time pending the determination of an extradition request."
Legal principles
(1) preventing football hooligans from taking part in violence and disorder in foreign countries is an imperative reason of public interest which is capable of justifying restrictions on their freedom of movement;(2) the statutory test for such a restriction was (under section 19B(1) of the 1989 Act) that the enforcing authority should have determined it to be "necessary or expedient for giving effect to the banning order"; but the enforcing authority is required to consider the individual circumstances of each case, and in each case to be satisfied that such a restriction is no more than is necessary to accomplish the objective of the banning order in the individual case;
(3) if an individual subject to a banning order pursuant to section 14B and whose travel outside this jurisdiction had been restricted pursuant to section 19 could demonstrate that, on a balance of probabilities, his or her reason for going abroad was other than attendance at a prescribed match, that would constitute "special circumstances" warranting exemption from the restriction.
"The personal conduct of the individual concerned must represent a genuine, present and sufficiently serious threat affecting one of the fundamental interests of society."
"(i) The power to impound a passport pending the disposal of a financial remedy claim exists in principle in aid of all the court's procedures leading to the disposal of the proceedings.
(ii) But it involves a restriction of a subject's liberty and so should be exercised with caution. The authorities emphasise the short-term nature of the restraint. The law favours liberty.
(iii) A good cause of action for a substantive award must be established.
(iv) The applicant must establish that there is probable cause for believing that the respondent is about to quit the jurisdiction unless he is restrained.
(v) And the applicant must further establish that the absence of the respondent from the jurisdiction will materially prejudice her in the prosecution of her action.
(vi) Provided that the principles in (i) to (v) are carefully observed a passport impounding order will represent a proportionate public policy based restraint on freedom of movement founded on the personal conduct of the respondent."
Application of these legal principles to the facts
"The threat that was said to arise from the need to prepare the trust statement had dissipated and the threat that can be said to arise from the potential need to answer further questions is undoubtedly diminished."
The protections offered by the Defendant
Conclusions
Disposition: application refused