PCB win crucial victory in Middle East Fraud case

Posted on: December 20th, 2012

On 16 October 2012 PCB Litigation applied to the English Commercial Court to discharge freezing and disclosure orders made on the basis that:

  • The claimants breached their duty on the ex parte applications by failing to make full and frank disclosure and misrepresenting matters; and
  • The claimants had breached an order for the preservation of certain hard drives

In discharging the original orders on 12th December 2012, Smith J said the following:

“[150] In this case my conclusions mean that the claimants’ breaches of duty on the ex parte applications were extensive and culpable, and their culpability was aggravated by their subsequent conduct, in particular the breach of the preservation undertaking by deleting documents from [certain hard drive] and the claimants’ dishonest evidence on these applications.”

Further, in deciding not to re-grant the orders, he said:

“[156] Although I have put my decision on the basis of the breach of duty on the ex parte applications, the claimants’ deliberate breach of the preservation undertaking to my mind confirms that it would be wrong to continue or renew the relief.”