Key defendant found liable in London High Court litigation brought by SCF Group of Companies
Friday 10 December, 2010
International law firm Ince & Co, led by Stuart Shepherd (pictured), represented the claimants, Russian ship operators Sovcomflot and Novoship.
Today in the High Court (Commercial Court) in London, Mr Justice Andrew Smith gave judgement in the case brought by the claimants Fiona Trust & Holding Corporation & Others, together with Intrigue Shipping Inc & Others, both now part of the SCF Group (Sovcomflot) against, amongst others: Mr Yuri Nikitin (the Principal of Standard Maritime Limited); Mr Dimitry Skarga (former Director General of Sovcomflot); and Mr Tagir Izmaylov (former President of JSC Novorossiysk Shipping Company). The Judgment extends to 421 pages.
In summary, Mr Justice Andrew Smith found Mr Yuri Nikitin liable for conspiring to injure the SCF Group by unlawful means (including bribery). As a consequence, whilst the amount of compensation is yet to be determined it is anticipated that it will be in the region of at least USD 65 million, including interest. Messrs Dimitry Skarga and Tagir Izmaylov were not found liable of dishonest breach of duty to the SCF Group.
Mr Nikitin was found to have been involved in fraudulent conduct between 2001-2004, including the bribery of Mr Yuri Privalov, former head of SCF's London office, and of collaboration and conspiracy with Mr Privalov and certain individuals at two leading London ship brokers. Pursuant to those conspiracies "commissions" on various sale and purchase and new building transactions were wrongly diverted away from the brokers' principals for the benefit of Mr Nikitin.
Several claims against other parties, including Mr Yuri Privalov, Clarksons and Galbraith's were subject to settlements agreed prior to trial totalling approximately USD 80m.
Commenting on the decision, Nicholas Fairfax, a member of the Executive Board of SCF Group, noted: "When we initiated the proceedings in 2005 we had no doubt that the SCF Group had been the subject of a fraud. The judgement of the London High Court announced today supports our decision to bring the proceedings."
Partner Stuart Shepherd, who led the Ince & Co team, said: "This was a lengthy and complex case involving multiple allegations of dishonest conduct. It required our team to undertake huge disclosure exercises in various countries. Our clients, who were defrauded of significant sums, have made a substantial recovery. Like our clients we are, however, disappointed that the central allegations concerning Mr Skarga were not accepted, despite the Court concluding that he gave dishonest evidence and acted dishonestly. We are pleased that claims against Mr Nikitin have been upheld."
The Ince & Co team included partners Ben Ogden, Rebecca Axe and Jonathan Goldfarb.
The Fiona Trust Litigation (PDF)
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For further information please contact:
Jane Biddell, Ince & Co London
Tel: + 44 (0)20 7481 0010
Tel: + 44 (0) 20 7551 8607
email: jane.biddell@incelaw.com
Notes to Editors
Ince & Co is an international law firm with 86 partners. Ince & Co has offices in Dubai, Hamburg, Hong Kong, Le Havre, London, Paris, Piraeus, Shanghai and Singapore. The firm's lawyers practise English, French, German, Greek, Hong Kong and PRC law and in Singaporean law in arbitrations.
Lawyers in the firm advise in seven core business areas: Aviation; Business & Finance; Commercial Disputes; Energy & Offshore; Insurance & Reinsurance; International Trade and Shipping. Our teams regularly use knowledge of one sector to advise clients in another.
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