In a judgment handed down yesterday, Mr Justice Henshaw upheld the application of Citibank (“Citi”) to grant summary judgment dismissing a €10bn claim.
The Claimant company purported to be a foundation managing high value funding projects for the United Nations. It purported to have received a €10bn transfer from an account at Deutsche Bank (“DB”) into the Claimant’s account with Citi. It said that this was the first of a series of instalment payments transferred by the relevant payor to the Claimant for the purposes of UN-approved investment.
In support of its claim, the Claimant adduced four purported SWIFT messages appearing to show the instruction and payment of the funds from DB to Citi. Subsequent to the alleged payment, the Claimant’s director had written to a number of global financial institutions, purporting to seek their assistance in recovering the €10bn.
Citi defended the claim, alleging that the SWIFT messages were forged, and that the claim had been brought dishonestly by the Claimant to secure an advantage in related litigation. At the same time as filing its defence, it applied for summary judgment dismissing the claim.
The Claimant relied on its particulars of claim, but served no further evidence responding to the application.
Mr Justice Henshaw granted Citi’s application. He held, amongst other things, that the Claimant’s assertion that funds existed to make the transfer was “entirely fanciful”. He held, further, that there was “no credible evidence” that DB ever made the transfer, or had any relationship with the alleged payor, and “no credible evidence” that Citi had ever received the funds. In those circumstances, he held that the Claimant had no realistic prospect of success, and there was no other compelling reason for a trial.
The judgment is notable for its helpful summary of the circumstances in which a respondent to a summary judgment application will come under an evidential burden to serve evidence responding to the application (see [34]-[35]). It also summarises recent authority on the Court’s approach to striking out or summarily dismissing claims involving allegations of fraud or forgery: see [36]-[39].
James MacDonald QC appeared for Citi, instructed by Clifford Chance LLP.
A copy of the judgment can be found here.