In the latest round of hard fought and high value fraud and enforcement litigation, on 30 November 2022 Mr Justice Foxton (sitting in the Commercial Court), handed down a judgment determining a series of disputes relating to the realisation of valuable shares and real estate recovered following a ten week trial in 2021. Daniel Saoul KC (with Elizabeth Jones KC of Serle Court, and Richard Hoyle and Lorraine Aboagye of Essex Court) acted for the successful parties, including Harbour Litigation Funding (represented by Harcus Parker), the Serious Fraud Office, Stewarts Law and various insolvency office holders (represented by Addleshaw Goddard, Stephenson Harwood and Holman Fenwick Willan), for whom he also acted at trial.
In summary, the trial had resulted in findings that a number of valuable assets were held on trust for Harbour, on the terms of its litigation funding investment agreement, as well as for certain other beneficiaries who had been the claimants in underlying fraud litigation known as the Orb Litigation, which Harbour had funded. Stewarts Law, who had acted for the claimants in the Orb Litigation, were also found to have the benefit of an equitable lien over the assets in its favour. Following the trial judgment, a dispute developed as to how the assets should be handled and realised, and by whom – raising issues about the terms of the trust, the powers of the trustees, the propriety of the conduct of certain beneficiaries in purporting to exercise those powers, and the circumstances in which receivers could be appointed over trust property. Dan’s clients succeeded in full, and also obtained worldwide freezing relief to protect their rights.