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DANILINA V CHERNUKHIN [2019] EWHC 173

This was an oligarch joint venture fight over the ownership of land in central Moscow worth US$200 million. The client was alleged to have breached his fiduciary duties owed to the Claimant and conspired with his Co-Defendant to unlawfully deprive the Claimant of her 50% interest in the joint venture.

The case attracted legal interest after the Court decided that whilst the client was entitled to security for costs, that amount should be calculated by reference to the extent of the risk that the orders were not enforceable in Russia, where the Claimant was domiciled, rather than the entirety of his costs. We successfully appealed that order in the Court of Appeal, where the Court held that our client was entitled to security for all his costs.

That was an important steps to take as after a 6 week trial which finished in mid-January 2019, the Court not only rejected all the claims made against the client but also awarded him indemnity costs as the Court found that the Claimant had given dishonest evidence to the Court pursuant to an agreement with another party to the proceedings.

We successfully opposed the Defendant’s application for permission to appeal to the Court of Appeal on all but one of the seven grounds; the trial judge gave permission to appeal on the one remaining ground.