Thomas Munby KC, Emily Gailey and James Mitchell acted for the successful First Defendant in Kireeva v Zolotova

A successful outcome for the First Defendant in Kireeva v Zolotova, in which a Russian bankruptcy trustee had attempted to claim ownership of a valuable property in Italy via a share in an English company.

Alongside substantive defences, the Defendant alleged that the proceedings offended against sanctions regulations (on the basis of alleged control of the Claimant’s litigation funding by sanctioned individuals) and the rules against maintenance, champerty and abuse of process. Those allegations were the subject of numerous interlocutory applications in the run-up to trial, including the Claimant's unsuccessful attempt to strike them out ([2024] EWHC 552 (Ch)) and various successful disclosure and amendment applications brought by the First Defendant. Ultimately, following an alleged replacement of the Claimant’s litigation funder in disputed circumstances, related issues led to the trial being adjourned and then struck out (three weeks before the adjourned trial was due to start) for breach of an unless order ([2024] EWHC 2705 (Ch)). The case illustrates both the difficulties which can arise with disputable funding arrangements (particularly where sanctions issues arise), and the Court’s approach to policing procedural compliance.

Thomas Munby KC, Emily Gailey and James Mitchell acted for the successful First Defendant, alongside Matt Bradley KC of 4 New Square who appeared on the final strike out application (which was listed urgently at a time the trial counsel team were already in court on other matters). Thomas, Emily, James and Matt were instructed by Smeetesh Kakkad and Claire van der List of Gresham Legal.

Read the published judgments in the case here and here.