David Mumford KC

Much of David’s practice comprises commercial litigation, including claims under business agreements (warranty and indemnity claims under share or business sale agreements being a staple), claims for breaches of fiduciary and other duties owed in connection with commercial arrangements (for example, in joint ventures), claims for fraud in the commercial arena and claims for the infringement of shareholder and other investor rights.

Notable cases include:

• Travelport v Wex [2020] EWHC 1960 (Comm): dispute about the applicability to the Covid-19 pandemic of a “Material Adverse Effect” clause in an agreement for the US$1.7bn acquisition of a travel payments business
• SL Claimants, Omers, Manning & Napier v Tesco plc [2020] EWHC 2106 (Ch), [2019] EWHC 3312 (Ch), [2019] EWHC 3315 (Ch), [2019] EWHC 2858 (Ch): claims in fraud under s.90A FSMA brought by various institutional investors against the well-known retailer in relation to the accounting scandal which broke in 2014
• UC Rusal plc v Crispian Investments Ltd [2018] EWHC 2415 (Comm): successful claim to prevent Roman Abramovich selling down his $1bn stake in Norilsk Nickel, Russia’s largest mining company
• Guardian News & Media v Rubicon Project: defending a provider of online advertising services from claims by the well-known newspaper that it had taken undisclosed commissions
• Cepia HK v The Character Group [2016] EWHC 3133 (Comm): successful defence of claims to enforce an option to acquire shares in a distributor of well-known toy brands
• Berezovsky v Abramovich, Hine & Ors [2012] EWHC 2463 (Comm), [2011] EWHC 1776 (Ch), [2011] EWHC 1716 (Ch), [2010] EWHC 2044 (Ch): two related multi-billion pound proceedings arising out of an alleged investment joint venture, in which David represented the former fund managers
• Masri v Consolidated Contractors International Company SAL [2011] EWHC 1780 (Comm): successful defence (on jurisdiction grounds) of conspiracy and procurement of breach of contract claims arising out of the alleged non-payment of judgment debts exceeding US$75 million
• In re the Buncefield Incident (2009) 2 Lloyd's Rep 1: claims in the Commercial Court in negligence, nuisance and Rylands v Fletcher arising out of the explosion at the Buncefield oil terminal

Numerous warranty and indemnity claims arising out of business and share sale agreements, including Cabot v Faccenda Investments (warranty claims relating to the sale of a debt recovery business), Lyondell Basell v Shell Petroleum NV (claims under an environmental contamination indemnity following the sale of a number of petrochemical facilities), Infinity Invest v Caffe Nero (claims to recover escrow monies held following the sale of part of the well-known coffee chain), Ageas (UK) Ltd v Kwik-Fit (GB) Ltd [2013] EWHC 3261 (QB) (warranty claims concerning the accounting treatment of a debt purchase facility) and Telekom Slovenije v Cosmote (warranty claims relating to the sale of one of Macedonia’s largest mobile telecoms operators)

David is co-editor of a leading textbook on Civil Fraud (Civil Fraud: Law, Practice and Procedure, Sweet & Maxwell) and has appeared in many leading fraud cases in the commercial context. He has experience in bringing and defending claims in deceit, conspiracy, bribery, breach of fiduciary duty and statutory frauds (e.g. s.90A FSMA and s.423 IA 1986), as well as in obtaining and resisting the interlocutory relief that is so often decisive in such claims (freezing orders, search orders etc.).

Notable cases include:

• SL Claimants, Omers, Manning & Napier v Tesco plc [2020] EWHC 2106 (Ch), [2019] EWHC 3312 (Ch), [2019] EWHC 3315 (Ch), [2019] EWHC 2858 (Ch): claims in fraud under s.90A
• FSMA brought by various institutional investors against the well-known retailer in relation to the accounting scandal which broke in 2014
• Qatar v Banque Havilland [2020] EWHC 1248 (Comm): claims in conspiracy arising out of an alleged international scheme to manipulate the value of Qatari currency and bonds
• Conway v Eze: [2018] EWHC 29 (Ch), [2018] EWHC 1569 (Ch): claim to set aside a contract to acquire a high value London residence on the grounds of bribery
• State Bank of India v Mallya & Ors: David acted for companies allegedly holding assets for the prominent entrepreneur (behind Kingfisher and the Force India F1 team) in relation to various “Chabra” orders obtained against them
• Asia Resource Minerals plc: David acted for the FTSE-listed mining conglomerate in a number of matters arising out of alleged financial irregularities and misappropriations, including a successful SIAC arbitration
• OSL v BCG: defending brokers against dishonest assistance claims brought by a Russian private bank defrauded by certain of its employees
• Ikon International v Ikon Finance: Commercial Court and arbitration proceedings concerning alleged frauds and diversions of profits in a foreign exchange trading joint venture
• MWP v Sinclair [2012] EWHC 2560 (Comm): conspiracy and dishonest assistance claims brought against third parties allegedly implicated in the diversion of corporate opportunities from a Kazakh firm concerned in natural resources transactions
• ITS Ltd v Pitt Capital Partners Ltd: claims in conspiracy and dishonest assistance arising out of the alleged fraudulent misapplication of £52 million from certain UK pension schemes
• Jennington International Inc v Assaubayev [2010] EWHC 2351 (Ch): US$500 million fraud action brought by a Russian gold mining conglomerate concerning the sale of a gold mining business in Kazakhstan
• Cadogan Petroleum plc v Tolley: fraud, conspiracy and dishonest assistance claims by a listed petroleum company against its former CEO and others for alleged bribery in connection with transactions in Ukraine
• Fifth Street Owner Corp v Rolin: deceit and restitutionary claims brought by a group of US property holding companies against a property advisor for $46 million worth of allegedly false invoices
• Stirling Mortimer Global Property Fund Ltd v ELS: claims in fraud, contract and dishonest assistance arising out of the misappropriation from a solicitor’s client account of €10 million deposited by a global property investment fund
• Marlwood v Kozeny [2008] EWHC 1538 (Comm): fraud and conspiracy claims advanced by AIG and other investors in respect of a scheme to invest in Azeri privatisation options

Company and partnership disputes form a substantial part of David’s practice, particularly as they arise in the commercial context. He has acted in such disputes in litigation and arbitration, both domestically and abroad. Such work includes unfair prejudice claims and other shareholder disputes, claims for breach of directors’ duties, claims for frauds on creditors or minorities and partnership dissolution actions. He has also acted in a number of disputes involving joint ventures.

Notable cases include:

• BTI v Sequana [2019] 1 BCLC 347, [2017] EWHC 1339 (Ch), [2017] EWHC 211 (Ch), [2016] EWHC 1686 (Ch): multi-million Euro claim to claw back allegedly unlawful dividend distributions in order to satisfy potential indemnity liabilities arising out of environmental contamination in the US. Now the leading authority on directors’ duties in the zone of insolvency
• Asturion Fondation v Alibrahim [2020] 1 WLR 1627, [2019] EWHC 274 (Ch): claim by a vehicle holding assets of the Saudi royal family to set aside a transfer for want of authority on the part of one of its board members; now the leading authority on “warehousing” abuse of process
• Reyl & Cie SA v LK Bennett Group Ltd: claims under s.423 IA 1986 and in conspiracy arising out of the restructuring of the group owning and operating the well-known shoe and fashion retailer
• Re SAB Miller: advice in connection with the US$121bn takeover of SAB Miller by AB InBev (the largest ever in the brewing industry)
• Berezovsky v Abramovich, Hine & Ors [2012] EWHC 2463 (Comm), [2011] EWHC 1776 (Ch), [2011] EWHC 1716 (Ch), [2010] EWHC 2044 (Ch): two related multi-billion pound proceedings arising out of an alleged investment joint venture, in which David represented the former fund managers
• Boghani v Nathoo [2011] 2 BCLC 704: dissolution action concerning a branded hotel partnership, with a leading decision on the application of s.38 of the Partnership Act 1890
• Heron Quays v Administrators of Lehman Brothers Ltd: dispute in the administration of Lehman Brothers as to the administrators’ liability to pay rent for the bank’s flagship Canary Wharf office

Numerous unfair prejudice and minority shareholder claims, including Re VK Com (unfair prejudice and breach of shareholder agreement claims arising from the alleged diversion of opportunities from the group owning the VKontake Russian social network), Re Northacre plc (derivative proceedings for breach of directors’ duties concerning an AIM-listed property development company), Rothschild v Bumi Plc (unfair prejudice proceedings brought by the well-known financier relating to alleged defalcations at the FTSE-listed mining conglomerate), Re Beck Group plc (unfair prejudice proceedings involving a group specialising in museum fit-outs) and Moher v Ashley (unfair prejudice and constructive trust claims in connection with the exploitation by Mike Ashley of the Lonsdale brand of sportswear)

Numerous other claims arising out of the breakdown of partnerships and joint ventures, particularly those engaged in property development, including Grainmarket Asset Management, Reuben v Ruimy, Newmarket Holdings v Confiance and Adler v Adler

David has acted in a range of banking and finance related matters, both in the High Court and in domestic and international arbitrations, including complex debt recovery actions, enforcement of securities, disputes over securitisations and bond issues, and the financing of government contracts.

Notable cases include:

• Solar Achiever: dispute over the appointment of receivers over shares in BVI companies by way of enforcement of claims by PRC banks in relation to the financing of a Hong Kong property development

• Qatar v Banque Havilland [2020] EWHC 1248 (Comm): claims in conspiracy arising out of an alleged international scheme to manipulate the value of Qatari currency and bonds

• Various banks v D & Ors: LCIA arbitration claims to enforce complex debt and security instruments against emerging market borrowers alleging frustration due to military unrest

• Canary Wharf Finance II v Deutsche Trustee Co [2016] EWHC 100 (Comm): dispute over redemption premia payable under notes issued as part of the securitisation of the Canary Wharf estate

• Erste Group Bank v JSC VMZ Red October [2015] EWCA Civ 379, [2013] EWHC 2926 (Comm): successful defence (on jurisdiction grounds) of conspiracy and s.423 IA 1986 claims by an Austrian bank against state-owned Russian steel companies

• CHC Scotia v RBPIL: defending Royal Bank of Scotland in claims resulting from the failure of a consortium to secure a government contract for the provision of helicopter search and rescue services

• Cinnamon European Structured Credit Master Fund v BCP SA [2009] EWHC 3381: jurisdiction challenge and contractual claims in connection with the securitisation of a €1.5bn portfolio of Portuguese mortgages

A number of other claims (in the Commercial Court and in LCIA, ICC and SIAC arbitrations) to enforce debts and amounts due under commercial contracts, including F&I v Virosat, Piemonte v Samsung Heavy Industries, Rabobank v Shree Renunka Sugars and ARM v Roeslani

David has been involved in a number of significant insolvency and asset recovery cases, particularly in offshore jurisdictions.

Notable cases include:

• Wang v Floreat: very substantial just and equitable winding up proceedings in the BVI and Cayman relating to 4 investment funds, in which some $500m has been invested and (allegedly) mismanaged.  David led in the EC Court of Appeal in a sizeable appeal on issues relating to the appointment of provisional liquidators and receivers.

• Solar Achiever: dispute over the appointment of receivers over shares in BVI companies by way of enforcement of claims by PRC banks in relation to the financing of a Hong Kong property development

• Tillman v Lloyds & Better Capital: claim in conspiracy by the former owner of Jaeger and Aquascutum against firms involved in the restructuring and rescue of the businesses

• BTI v Sequana [2019] 1 BCLC 347, [2017] EWHC 1339 (Ch), [2017] EWHC 211 (Ch), [2016] EWHC 1686 (Ch): multi-million Euro claim to claw back allegedly unlawful dividend distributions in order to satisfy potential indemnity liabilities arising out of environmental contamination in the US. Now the leading authority on directors’ duties in the zone of insolvency

• Reyl & Cie SA v LK Bennett Group Ltd: claims under s.423 IA 1986 and in conspiracy arising out of the restructuring of the group owning and operating the well-known shoe and fashion retailer

• Erste Group Bank v JSC VMZ Red October [2015] EWCA Civ 379, [2013] EWHC 2926 (Comm): successful defence (on jurisdiction grounds) of conspiracy and s.423 IA 1986 claims by an Austrian bank against state-owned Russian steel companies

Equitable Life v Ernst & Young, Bowley & Ors [2005] EWHC 722 (Comm): David acted unled for Roy Ranson, the former MD and Appointed Actuary of Equitable Life, at the trial of its £3.3bn professional negligence and breach of directors’ duties claim against its former auditors, Appointed Actuary and Board, arising out of the collapse of the Society

David is called to the Bar in the British Virgin Islands and (ad hoc) the Cayman Islands, and has acted in offshore disputes there, in Gibraltar, Hong Kong, Jersey, Guernsey and Singapore. A lot of his offshore work is in fraud, company and trust disputes, as well as in the obtaining or resisting of interlocutory relief securing assets situated in one jurisdiction in aid of substantive proceedings in another.

Notable cases include:

• Convoy Collateral v Cho: freezing order proceedings in the BVI ancillary to a substantial fraud claim in Hong Kong. Now the leading Court of Appeal authority on whether freezing orders in aid of foreign proceedings can be served out of the jurisdiction
• R&S Trust: claims before BVI Courts in relation to the alleged fabrication of a trust in order to seize control of a substantial Ukrainian business group from a deceased business partner
• Re NWVF: proceedings in Gibraltar and the BVI relating to a fund holding assets associated with Boris Berezovsky and Badri Patarkatsishvili
• Investec Trust (Guernsey) Ltd v Glenalla Properties Ltd: claims in Guernsey to recover the proceeds of loans made by the Icelandic bank Kaupthing to trust companies holding investments associated with the Tchenguiz brothers
• Deutsche Bank (Nominees): advising Jersey trustee and nominee shareholders of a feeder fund in connection with exposures to the Madoff ponzi scheme fraud
• In re St Paul’s Trust: claims arising out of trust investments in New York derivative instruments that ceased trading following the 2008 banking collapse
• In re the Phi Settlement: proceedings seeking Court sanction for the division of a substantial Jersey trust
• In re Baltic Partners Limited: unfair prejudice and derivative claims in the Royal Court of Jersey relating to investments in certain German properties
• In re Internine and Intertraders Trusts: breach of trust proceedings in the Royal Court of Jersey relating to certain Saudi family trusts

David has acted in a number of professional negligence claims, particularly defending auditors and financial services advisers in connection with commercial transactions.

Notable cases include:

• Topping Chance v CCIF: audit negligence claims in relation to a food exporting business operating out of Hong Kong, China and the Bahamas
• AngloStarlite v NCMF: audit and actuarial negligence claims in Hong Kong for in excess of HK$1 billion arising out of the collapse of a motor insurer
• Makar v PricewaterhouseCoopers [2011] EWHC 3835 (Comm): striking out of an audit negligence claim by a director on the grounds of lack of a duty of care (and subsequent strike-out of related claims at [2012] EWHC 3681 (Comm))
• Scottish & Newcastle plc v PricewaterhouseCoopers: professional negligence claim in relation to management consultancy advice given on the restructuring of the S&N distribution network
• Gregson v HAE Trustees [2008] 2 BCLC 542: leading case on the availability of a “dog-leg” claim by beneficiaries of a trust directly against the directors of the trustee company in relation to management of the trust investments
• Finlan v Eyton Morris Winfield (a firm) [2007] 4 All ER 143: professional negligence claim against corporate finance advisers and solicitors in connection with a management buy-in
• Equitable Life v Ernst & Young, Bowley & Ors [2005] EWHC 722 (Comm): David acted unled for Roy Ranson, the former MD and Appointed Actuary of Equitable Life, at the trial of its £3.3bn professional negligence and breach of directors’ duties claim against its former auditors, Appointed Actuary and Board, arising out of the collapse of the Society.