The Law Debenture Trust Corporation p.l.c. v Ukraine - Update September 2018
14 September 2018
Claim No. FL-2016-000002 / Appeal Ref. 2017/1755: The Law Debenture Trust Corporation p.l.c. v Ukraine - Update
This is an update on the ongoing action in Claim No. FL-2016-000002: The Law Debenture Trust Corporation p.l.c. v Ukraine. The claim relates to Ukraine’s default on its U.S.$3,000,000,000 5.00 per cent. Notes due 2015.
The Law Debenture Trust Corporation p.l.c. acted as Trustee on this Eurobond and made an application in the English High Court for summary judgment for the benefit of Noteholders (currently the Russian Federation). As the High Court judge explained in his judgment: “[s]ummary judgment is the procedure by which the court may decide a claim without a trial, where the claimant can show that the defendant has no real prospect of successfully defending the claim.” On 29 March 2017, the English High Court concluded that in respect of the four defences put forward by Ukraine, this test was met and awarded summary judgment in favour of The Law Debenture Trust Corporation p.l.c.
Ukraine appealed to the Court of Appeal to seek to change the High Court’s decision. On 14 September 2018, the Court of Appeal concluded that The Law Debenture Trust Corporation p.l.c. was entitled to summary judgment in respect of three of the four defences, but that one defence would require a trial to determine whether it constituted a defence to the claim, and that, for that defence only, summary judgment would not be awarded.
The Law Debenture Trust Corporation p.l.c.’s position is that summary judgment should be awarded on all four defences rather than only three of them. The Court of Appeal gave The Law Debenture Trust Corporation p.l.c. permission to appeal the Court of Appeal’s decision that one of the defences requires a trial. The appeal will be decided by the Supreme Court.