4 New Square successful in resisting £75 million Russian investment appeal

In Khanty-Mansiysk Recoveries v Forsters LLP [2018] EWCA Civ 89, the Court of Appeal has today dismissed an appeal brought by Khanty-Manisysk Recoveries Ltd in relation to summary judgment against its claim (said to be worth £75 million) against a solicitors firm involved in the arrangements for an investment in oil exploration assets in Russia. Jamie Smith QC and Anthony Jones represented the successful respondent law firm, both on appeal and in the Commercial Court ([2016] EWHC 522 (Comm)), in this important professional negligence case selected as one of The Lawyers Top 20 Cases of 2016.

The respondents obtained judgment at first instance on a preliminary issue, namely that the claim had already been settled by virtue of the terms of a settlement agreement following a fee dispute between the firm and its former clients (the assignors of the claim brought by Khanty-Mansiysk Recoveries). The result in this appeal confirms the potential impact that a settlement may have on subsequent litigation, even when the claims brought subsequently were not known or considered by the parties at the time of that settlement.