Travers Smith has secured victory for Icelandic lawyer Johannes Jóhannsson against a £2.2bn claim brought by businessman Vincent Tchenguiz in the High Court.
Tchenguiz alleged that Jóhannsson, a a former member of defunct bank Kaupthing’s resolution and winding up committees, misused the Serious Fraud Office’s (SFO) powers in 2009.
He alleged that the lawyer had agreed with others “to instigate, encourage and/or direct an SFO investigation into the collapse of Kaupthing” by making “false allegations of criminal conduct or other wrongdoings” to put pressure on Tchenguiz and others to obtain information.
Mr Justice Knowles today (20 April) dismissed the claim against Jóhannsson, and was satisfied that the claim being asserted by Tchenguiz had in fact been settled by virtue of an agreement entered into in earlier proceedings which voided any future legal action between the parties.
The judgment brings proceedings against Jóhannsson to an end, subject to Tchenguiz taking his claim directly to the Court of Appeal. The claim against Grant Thornton UK and the two partners of Grant Thornton UK Stephen Akers and Hossein Hamedani continues.
Travers Smith partner Stephen Paget-Brown instructed 4 Stone Buildings’ Robert Miles QC and South Square’s Jeremy Goldring QC to lead defence of claim.
Tchenguiz turned to McGuireWoods partner Hardeep Nahal, who instructed Selborne Chambers’ Romie Tager QC and One Essex Court’s David Cavender QC.
Last year Travers Smith won a jurisdictional challenge to the High Court to have Tchenguiz’ £2.2bn claim against Kaupthing heard in Iceland.
Paget-Brown said the result was “an important victory” for his client.
“In my view this is a claim which should never have been brought,” he said. “It is clear to me that the very serious allegations made in the claim about the conduct of Jóhannsson had absolutely no basis in fact, and were pursued despite the absence of any evidence whatsoever supporting those allegations.”
Property tycoon Vincent Tchenguiz launched the billion-pound legal action against accountancy firm Grant Thornton, Kaupthing and a number of related individuals in November, following the collapse of the Serious Fraud Office’s (SFO) botched investigation into him and his brother.
Tchenguiz claimed the companies conspired to instigate the probe, which ended with the SFO paying him £3m plus costs in July 2014.
He initially launched a legal action against Kaupthing when it collapsed in 2008, claiming the bank owed him £1.6bn. Tchenguiz alleged Kaupthing encouraged the SFO to investigate him in order to have his claim against it quashed.
The £2.2bn claim included the original claim against the bank plus damages as a result of loss of business opportunities relating to failed restructuring of his assets, and increased cost of credit.
The legal line-up
For the respondents/claimants, Vincent Tchenguiz & Ors
Selborne Chambers’ Romie Tager QC, One Essex Court’s David Cavender QC and Alexander Brown, Argent Chambers’ Jonathan Crystal, instructed by McGuireWoods partner Hardeep Nahal
For the applicants/fourth and fifth defendants, Kaupthing Bank and Johannes Jóhannsson
4 Stone Buildings’ Robert Miles QC and Tom Gentleman and South Square’s Jeremy Goldring QC, instructed by Travers Smith partner Stephen Paget-Brown