Tuesday, May 19, 2015

VTB V. NUTRITEK (2011-2013)

Essential reading:

VTB Capital plc v Nutritek International Corp

Piercing the corporate veil: An update in light of VTB v. Nutritek [Court of Appeal]

VTB v. Nutritek: Supreme Court confirms corporate veil cannot be pierced to make a puppeteer party to his puppet’s contract

Additional reading:

Case Comment: VTB Capital Plc v Nutritek International Corp & Ors [2013] UKSC 5

Technical reading:

Court of Appeal: VTB Capital Plc v Nutritek International Corp & Ors [2012] EWCA Civ 808 (20 June 2012) 
UK Supreme Court: VTB Capital Plc v Nutritek International Corp & Ors (Rev 1) [2013] UKSC 5 (6 February 2013) 


Issues for discussion:

1)      What courts considered the disputes?  Who were the parties?  What were the essential facts?
2)      Did the bank have a contract with the defendant?  Was the claim grounded on contract or tort law?
3)      Did Russian or English law govern the alleged tortuous conduct?  What were the opinions of the courts of different instances on that?
4)      Did English courts have jurisdiction to resolve the case?  Was the English court “appropriate forum” for that?  Why or why not?  What were parties’ opinions on that issue?  What was the decision of the Supreme Court?
5)      What is meant by “piercing the corporate veil”?  What should be proved to “pierce the veil”?  The veil of which company did the claimant want to pierce?  Who the claimant thought was behind the veil?
6)      Do you think a “puppeteer” should be responsible for contracts of his “puppet”?  What has the Supreme Court decided?
7)      Do you think the outcome of the case was fair?

8)      Does the claimant have any remedy now, after English courts have refused to hear its claim? 

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