*Fiona Trust & Holding Corporation and others v Privalov and others

Practice – Pre-trial or post-judgment relief. In earlier proceedings, the claimant Russian shipping companies had alleged that the various defendants had been dishonestly involved in schemes to enrich a Russian businessman. The claimants had obtained freezing orders against the defendants and gave undertakings (the undertakings) to compensate the defendants in the event that the court found them to have suffered loss consequent upon the orders. Some, but not all of the claims had succeeded. Some of the defendants to the orders (the applicants in the present proceedings) alleged that they suffered loss consequent upon those orders and that the orders had been improperly made due to alleged misrepresentation and lack of disclosure and had caused them loss. They applied for directions for an assessment of compensation for loss suffered to be paid, under the undertakings. The Commercial Court, in granting the application, held that the impropriety of the claimants who had obtained the freezing orders had been such that it would be wrong not to enforce the undertakings. The defendants had adduced sufficient evidence that the orders had caused them loss to justify an inquiry as to damages.

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