Aeroflot-Russian Airlines v Berezovsky & ors [2015] EWHC 3937 (Ch)

Analysis

The claimant brought proceedings against (amongst others) Mr Berezovsky’s estate. An application was issued on 9 December 2015 by the trustees of the insolvent estate of the late Mr Berezovsky in the run up to the first CMC. The trustees were Mr Wood, Mr Hellard and Mr Leeds, and they sought a stay of the proceedings against Mr Berezovsky’s estate under s285(1) of the Insolvency Act 1986 as amended by the Administration of Insolvent Estates of Deceased Persons Order 1986 (SI 1986/1999). The trustees’ principal argument was that if a stay was not granted the trustees would be pushed to defend a claim which would take up money that they did not have and would only lead to a pyrrhic victory for the claimant. The assets of the estate were less than the various proprietary claims being asserted against the estate which amounted to $400m in value.

Held:

1. 1) The application for a stay should be dismissed. It would lead to substantial unfairness in the case to the other defendants if the claim was pursued against them but not against Mr Berezovsky. It did not make sense for the case to proceed against them but to be stayed against Mr Berezovsky.
2. 2) Given the stage that the case had reached, if a stay was granted in respect of Mr Berezovsky’s estate, then the effect would be to release the estate from any liability.

JUDGMENT MRS JUSTICE ROSE: [1] In the run-up to this CMC, which is the first CMC in this case, an application was issued on 9 December 2015 by the trustees of the insolvent estate of Mr Berezovsky. Those trustees are Mr Wood, Mr Hellard and Mr Leeds, and they seek a stay of the proceedings …

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