Group Seven v Notable Services Neutral citation: [2019] EWCA Civ 614

WTLR Issue: Autumn 2019 #176

1) GROUP SEVEN LIMITED

(a company incorporated under the laws of Malta)

(2) RHEINGOLD MANAGEMENT INCORPORATED

(a company incorporated under the laws of Panama)

V

(1) NOTABLE SERVICES LLP

(2) MARTIN LANDMAN

And Between:

EQUITY TRADING SYSTEMS

and

(1) NOTABLE SERVICES LLP

(2) MARTIN LANDMAN

And Between:

LLB VERWALTUNG (SWITZERLAND) AG (formerly known as LIECHTENSTEINISCHE LANDESBANK (SWITZERLAND) LIMITED)

(a company incorporated under the laws of Switzerland)

v

(1) GROUP SEVEN LIMITED

(a company incorporated under the laws of Malta)

(2) RHEINGOLD MANAGEMENT INCORPORATED

(a company incorporated under the laws of Panama)

(3) NOTABLE SERVICES LLP

(4) MARTIN LANDMAN

And Between:

LLB VERWALTUNG (SWITZERLAND) AG

(formerly known as LIECHTENSTEINISCHE LANDESBANK (SWITZERLAND) LIMITED)

(a company incorporated under the laws of Switzerland)

and

(1) EQUITY TRADING SYSTEMS LIMITED

(2) NOTABLE SERVICES LLP

(3) MARTIN LANDMAN

And Between:

OTHMAN LOUANJLI

- and -

(1) GROUP SEVEN LIMITED

(a company incorporated under the law of Malta)

(2) RHEINGOLD MANAGEMENT INCORPORATED

(a company incorporated under the laws of Panama)

(3) NOTABLE SERVICES LLP

(4) MARTIN LANDMAN

And Between:

OTHMAN LOUANJLI

- and -

(1) EQUITY TRADING SYSTEMS LIMITED

(2) NOTABLE SERVICES LLP

(3) MARTIN LANDMAN

Analysis

These appeals arose from the a ‘brazen fraud’ by which Allseas Group SA was defrauded of €100 million. After the fraud took place, there was an attempt to launder the proceeds through the client account of a London firm of solicitors, Notable Services LLP, whose partners included Mr Landman. Police intervention secured the return of €88 million – the present proceedings concerned attempts to recover the remainder of this sum from Notable, Mr Landman, Mr Louanjli (a bank employee who provided information to Notable) and LLB Verwaltung, the bank who employed him (”the Bank”).

Counsel details

Jeffrey Chapman QC, Simon Atrill and Simon Paul (Fountain Court, Temple, London EC4Y 9DH, Telephone: +44 (0)20 7583 3335, Email: chambers@fountaincourt.co.uk) instructed by Mishcon de Reya LLP (Africa House, L70 Kingsway, Londonn, WC2B 6AH, Telephone: +44 20 3321 7000, Email: contactus@mishcon.com) for Group Seven Limited, Rheingold Management Inc and Equity Trading Systems Ltd


William Flenley QC and Francis Bacon (Hailsham Chambers, 4 Paper Buildings, Temple, London EC4Y 7EX, Tel: +44 (0)20 7643 5000, Email: clerks@hailshamchambers.com) instructed by Caytons Law (85 Gracechurch Street, London, EC3V 0AA, Telephone: +44 (0)20 7398 7600, Email: info@caytonslaw.com) for Notable Services LLP


Sonia Tolaney QC (One Essex Court, Temple, London EC4Y 9AR, Telephone: 020 7583 2000, Email: clerks@oeclaw.co.uk) and Michael Ryan (7 King’s Bench Walk Temple, London EC4Y 7DS, Telephone: +44 (0)20 7910 8300, Email: clerks@7kbw.co.uk) instructed by Pinsent Masons LLP (30 Crown Place, Earl Street, London EC2A 4ES, Telephone: +44 (0) 20 7418 7000, Email: enquiries@pinsentmasons.com) for LLB Verwaltung (Switzerland) AG


Aidan Casey QC and Emily Moore (3 Hare Court, Temple, London EC4Y 7BJ, Telephone: +44 (0)20 7415 7800, Email: clerks@3harecourt.com) instructed by FPG Solicitors (Devonshire House, 582 Honeypot Lane, Stanmore HA7 1JS, Telephone: 0203 092 5484) for Mr Louanjli


Philip Hackett QC (The 36 Group, 4 Field Court, Grays Inn, London WC1R 5EF, Telephone: 020 7421 8000, Email: clerks@36commercial.co.uk) and Faisal Saifee (7 Lincoln’s Inn Fields, London WC2A 3BP, Telephone: +44 (0) 20 7404 7000, Email: clerks@thomasmore.co.uk) instructed by Janes Solicitors (Cording House, 34/35 St James’s Street, London SW1A 1HD, Telephone: 020 7930 5100, Email: office@janes-solicitors.co.uk) for Mr Landman

Cases referenced

Cases in bold have further reading - click to view.

  • Agip (Africa) Ltd v Jackson [1990] Ch 265
  • AIB Group v Mark Redler [2015] WTLR 187, [2014] UKSC 58
  • Anderson v City of Bessemer [1985] 470 US 564
  • Assicurazioni Generali SvA v Arab Insurance Group [2002] EWCA Civ 1642
  • Baden v Société Générale [1993] 1 W.L.R. 509
  • Barlow Clowes International Ltd v Eurotrust International Ltd [2005] WTLR. 1453, [2005] UKPC 37
  • Barnes v Addy (1874) L.R. 9 Ch. App. 244
  • Bartonshill Coal Co v McGuire (1858) 3 Macq. 300
  • Bazley v Curry (1999) 174 D.L.R. (4th) 45
  • BCCI (Overseas) Ltd v Akindele [2000] WTLR. 1049, [2001] Ch 437
  • Biogen Inc v Medeva plc [1977] R.P.C. 1
  • Brinks Ltd v Abu-Saleh [1996] C.L.C. 133
  • British Council v Jeffery [2018] EWCA Civ 2253
  • Broom v Morgan [1953] 1 Q.B. 597
  • Cases referred to Abou-Rahmah v Abacha [2007] WTLR 1, [2006] EWCA Civ 1492
  • Cox v Ministry of Justice [2016] A.C. 660
  • Datec Electronics Holdings Ltd v United Parcels Service Ltd [2007] UKHL 23
  • Deatons Pty Ltd v Flew (1949) 79 C.L.R. 370
  • Doyle v Olby (Ironmongers) Ltd [1969] 2 Q.B. 158
  • Dubai Aluminium Co Ltd v Salaam [2003] WTLR. 163, [2003] 2 AC 366
  • Duncan v Findlater (1839) 6 Cl. & Fin. 894
  • Fage UK Ltd v Chobani UK Ltd [2014] EWCA Civ 5
  • Group Seven Ltd v Allied Investment Corp Ltd [2014] EWHC 2046 (Ch)
  • Group Seven Ltd v Allied Investment Corp Ltd [2015] EWCA Civ 631
  • Group Seven Ltd v Nasir [2017] EWHC 2466 (Ch)
  • Grupo Torras SA v Al Sabah [1997] C.L.C. 1553
  • Grupo Torras SA v Al-Sabah [2001] WTLR 641, [2001] Lloyds Rep. Bank 36
  • Henderson v Foxworth Investments Ltd [2014] UKSC 41
  • Housen v Nikolaisen [2002] 2 SCR 235
  • Ivey v Genting Casinos (UK) Ltd [2017] 1 WLR 679
  • Ivey v Genting Casinos (UK) Ltd [2018] A.C. 391
  • JSC Bank v Ablyazov [2018] EWCA Civ 1176
  • Kooragnag Investments Pty. Ltd v Richardson & Wrench Ltd [1982] A.C. 462
  • Lister v Hesley Hall Ltd [2002] 1 A.C. 215
  • Lloyd v Grace, Smith & Co [1912] A.C. 716
  • Madoff Securities International Ltd v Raven [2014] Lloyd's Rep. F.C. 95
  • Maga v Archbishop of Birmingham & Anr [2010] 1 W.L.R. 1441
  • Manifest Shipping Co Ltd v Uni-Polaris Insurance Co Ltd [2003] 1 A.C. 469
  • McGraddie v McGraddie [2013] UKSC 58
  • Mohamud v WM Morrison Supermarkets plc [2016] A.C. 677
  • Morris v C W Martin & Sons Ltd [1966] 1 Q.B. 716
  • Novoship (UK) Ltd v Mikhaylyuk [2014] WTLR 1521, [2015] Q.B. 499
  • Pettersson v Royal Oak Hotel Ltd [1948] N.Z.L.R. 13
  • Piglowska v Piglowski [1999] 1 W.L.R. 1360
  • Playboy Club London Ltd & Ors v Banca Nazionale Del Lavoro SPA [2014] EWHC 2613 (QB)
  • R v Ghosh [1982] Q.B. 1053
  • Re B (A Child) [2013] UKSC 33
  • Rose v Plenty [1976] 1 W.L.R. 141
  • Royal Brunei Airlines v Tan [1995] 2 A.C. 378
  • Smech Properties Ltd v Runnymede BC [2016] EWCA Civ 42
  • Smith New Court Ltd v Scrimgeour Vickers [1997] A.C. 254
  • Starglade Properties Ltd v Nash [2010] WTLR 1267, [2011] 1 Lloyd's Rep. F.C. 102
  • Target Holdings v Redferns [1996] A.C. 421
  • Todd v Adams & Chope (trading as Trelawney Fishing Co) [2002] 2 Lloyd's Rep. 293
  • Turberville v Stampe (1698) 1 Ld. Raym. 264
  • Twinsectra v Yardley [2002] WTLR. 423, [2002] 2 A.C. 164
  • Ultraframe v Fielding [2007] WTLR. 835, [2005] EWHC 1638
  • Various Claimants v Catholic Child Welfare Society [2013] 2 A.C. 1
  • Warren v Henlys Ltd [1948] 2 All E.R. 935
  • Weddall v Barchester Healthcare Ltd [2012] I.R.L.R. 307

Legislation referenced

Legislation in bold has further reading - click to view.

  • Statutes referred to Marine Insurance Act 1906, s39(5)
  • Theft Act 1968