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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 >> Berkeley Square Holdings Ltd & Ors v Lancer Property Assets Management Ltd & Ors (Strike Out Application) (Rev 1) [2021] EWHC 818 (Ch) (Hearing 23-25 March 2021) URL: http://www.bailii.org/ew/cases/EWHC/Ch/2021/818.html Cite as: [2021] EWHC 818 (Ch) |
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BUSINESS AND PROPERTY COURTS OF ENGLAND AND WALES
BUSINESS LIST (ChD)
7 Rolls Building Fetter Lane London EC4A 1NL |
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B e f o r e :
(Sitting as a judge of the Chancery Division)
(Remotely via Microsoft Teams)
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BERKELEY SQUARE HOLDINGS LIMITED & OTHERS |
Claimant/ Applicants |
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- and - |
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(1) LANCER PROPERTY ASSETS MANAGEMENT LIMITED (2) JOHN TOWNLEY KEVILL (3) DUNCAN ROBERT FERGUSON (4) ANDREW JOHN WINDLE LAX (5) BYRON HOWARD PULL (6) LANCER PROPERTY HOLDINGS LIMITED |
Defendants/ Respondents |
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MR. ADRIAN BELTRAMI QC, MR. RICHARD MOTT and MR. OSCAR SCHONFELD (instructed by Reynolds Porter Chamberlain LLP) appeared for the Defendants/Applicants
Hearing Date: 23-25 March 2021
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Crown Copyright ©
MR ROBIN VOS:
Background
Procedural Background
Paragraph 8 of the Defence
"Sheikh Khalifa is reported to have suffered a stroke in January 2014, which the defendants believe to be gravely debilitating of his mental faculties. Further, those persons who are giving instructions on behalf of the Claimants in this matter do not have direct knowledge of whether Sheikh Khalifa authorised and approved the matters now complained of and the Defendants believe those persons are prevented by the mental incapacity of Sheikh Khalifa from seeking such confirmation from him now."
Striking out pleadings and the basis for the application
"(2) The court may strike out a statement of case if it appears to the court –
a) that the statement of case discloses no reasonable grounds for bringing or defending the claim;
b) that the statement of case is an abuse of the court's process or is otherwise likely to obstruct the just disposal of the proceedings;"
i) The remaining allegation does not constitute a defence to the claim.
ii) The real reason for the allegation of incapacity is to court publicity with a view to embarrassing Sheikh Khalifa (and his family more generally), hoping that this will exert pressure resulting in a settlement of the claim. This, they say, is an abuse of process within CPR Rule 3.4(2)(b).
iii) The allegation of incapacity offends various rules relating to state immunity, the act of state doctrine and comity including, in particular, that the allegation of incapacity is an attack on the dignity of a head of state in contravention of Article 29 of the Vienna Convention on Diplomatic Relations 1961. The argument is that, on the basis of one or more of these principles, the question of Sheikh Khalifa's incapacity is not one which can be determined by an English court.
Does paragraph 8 disclose a reasonable ground for defending the claim?
"(1) Statements of case must be concise. They must plead only material facts, meaning those necessary for the purpose of formulating a cause of action or defence, and not background facts or evidence. Still less should they contain arguments, reasons or rhetoric. These basic rules were developed long ago and have stood the test of time because they serve the vital purpose of identifying the matters which each party will need to prove by evidence at trial.
(2) As commercial transactions have become more complex and more heavily documented (including electronically), adhering to the basic rules of pleading has become both increasingly difficult and all the more important. It is increasingly difficult because it is harder for pleaders to distil what is essential from the material with which they are provided and because they can feel pressure to show their mettle and enthusiasm for their client's case by treating the pleadings as an opening salvo of submissions in the litigation. It is all the more important because prolixity adds substantial unnecessary costs to litigation at a time when it is harder than ever to keep such costs under control."
"The purpose of a pleading or statement of case is to inform the other party what the case is that is being brought against him. It is necessary that the other party understands the case which is being brought against him so that he may plead to it in response, disclose those of his documents which are relevant to that case and prepare witness statements which support his defence. …. It is also necessary for the Court to understand the case which is brought so that it may fairly and expeditiously decide the case and in a manner which saves unnecessary expense."
"One should not strike out allegations on the ground of irrelevance unless they are, to use Rattee J's words, 'so clearly irrelevant to justify their being struck out'."
"What I am concerned with is the question of whether the allegations in those paragraphs do or may properly bear on the issues between the parties. For the reasons I have given, I think they, at least arguably, do as a matter of principle and therefore it would be wrong to strike them out."
"They include background facts, evidence and polemic in a way which makes it hard to identify the material facts and complicates, instead of simplifying, the issues. The phrasing is often not just contentious but tendentious. For example, the defined term used to refer to three of the defendants is "the Conspirators". Nor can headings such as "the plot" and "the plot evolves" be supposed to be "in a form that will enable them to be adopted without issue by the other party"."
"I need to just consider this in the light of the pleadings".
"It seems to me that plainly, on the face of the pleadings, and there is no suggestion this is going to be admitted, this is a key issue. I agree with what is summarised on page 14, where it is said:-
"This is an important issue which, amongst other things, explains why the present litigation has been commenced notwithstanding the fact that Sheikh Khalifa's is still alive"."
Abuse of process
"It would be wrong in principle to plead a matter which is immaterial to the claim or claims made or relief sought for the purpose of securing disclosure of documentation relating to such immaterial matter."
"have been high risk, and apparently pursued, and usually publicised, to exert pressure in the hope of extracting a settlement, with frail evidential support and little regard to their prospects of success at trial or any real and realistic objective of securing vindication by adjudication".
"Whilst that may not technically amount to abuse, it is close to it, since the court is intentionally, though in the event, unsuccessfully, being used as an anvil for settlement rather than as an adjudicator;"