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Magdeev v Tsvetkov [2020] EWHC 997 (Comm)

The Commercial Court has today given judgment in favour of PCB’s client, Mr Dmitry Tsvetkov, who was defending a claim brought under a guarantee by his former business partner, Rustem Magdeev. At the centre of the case was a Graff diamond franchise, established by Mr Tsvetkov, and invested in by Mr Magdeev.

The case was unusual because whilst the claim was based on a written document, being the guarantee, the successful defence was based on establishing that the parties had entered into two oral agreements, pursuant to which various payments had been made by which the loan underlying the guarantee had been repaid.

The defence was successful because Mrs Justice Cockerill DBE was persuaded that the circumstances of this case were such “the documentary record cannot be regarded as entirely reliable” with the result that “less weight is placed on such documents as signed contracts than is usual in this Court”.

The PCB team comprised Anthony Riem, Cath Eason, Andrew McLeod and Caitlin Foster.

Magdeev v Tsvetkov [2020] EWHC 997 (Comm)