Deutsche Bank AG v Sebastian Holdings and Alexander Vik

In the latest development in the long-running litigation between Deutsche Bank and billionaire businessman Alexander Vik’s vehicle, Sebastian Holdings Inc, Mr Justice Teare has ruled that, notwithstanding that Mr Vik is resident out of the jurisdiction, Deutsche Bank can apply to commit Mr Vik for breaches of a court order requiring him to provide information and documents about Sebastian Holdings’ means to pay the US$243 million judgment Deutsche Bank obtained against it in 2013.

Deutsche Bank’s application is the first case in which the Court has had to decide whether contempt proceedings can be brought against an officer of a judgment debtor resident abroad for breaches of orders under CPR 71.2.  Teare J held that Deutsche Bank was entitled to make an application to commit Mr Vik under CPR 81 and/or CPR 71.8, notwithstanding that CPR 71.2 is territorially limited and that Mr Vik is resident out of the jurisdiction.  Teare J did not give permission to serve the committal application out of the jurisdiction on Mr Vik but left open the question of whether such permission would be required in the circumstances.

Sonia Tolaney QC, James MacDonald and Andrew Lodder acted for Deutsche Bank, instructed by Freshfields Bruckhaus Deringer LLP.

The judgment is available here.