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Mishcon de Reya Successfully Defends Russian Oligarch

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The Mishcon de Reya law firm announced that it has successfully defended a EUR 50 million claim bought by an American businessman against a Russian oligarch in the English Commercial Court, in a case that addressed the issue of when contracts should be governed by English law.

Richard Gerstein, Partner and Head of Mishcon de Reya's Professional Negligence Team, represented defendant Lev Tchernoy, a Russian businessman who generated significant wealth in the Russian aluminum industry. The claimant, Carl Sax, an American businessman, brought the claim over the acquisition and development of a 269 hectare estate in Sardinia, Italy – a joint business venture between the two parties and one other which ended when Tchernoy became concerned over the legality of the proposed transaction. Mr. Justice Hamblen ruled in favor of Tchernoy on all three grounds put forward by Mishcon de Reya -- that there was no binding contract, that English law did not apply, and that there was no basis to recover any of the damages claimed. 

The firm issued a statement announcing that: "As London's standing as the preferred dispute resolution centre for wealthy foreigners increases, this case illustrates the need for a genuine connection to England for the case to be heard here." And according to Gerstein, "the impact of the decision is that the claim cannot be pursued in England, and will not be pursued elsewhere. The judge effectively said that if you want the English courts to determine disputes you need to expressly provide for it."

 

 

 

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