UK Court to Determine the amount that Irakli Rukhadze and his Business-partners have to Pay to Recovery Partners GP Limited and Revoker LLP by way of an account of profits
On October 18 2021, the High Court of Justice of England and Wales has commenced the quantum stage of the proceedings between Recovery Partners GP Limited, Revoker LLP (Claimants) - AND - Mr Irakli Rukhadze, Mr Igor Alexeev, Mr Benjamin Marson (Individual Defendants), also Hunnewell Partners (UK) Limited; Hunnewell Partners (BVI) Limited; Park Street (GP) Limited, Park Street (BR) Limited and Park Street (GS) Limited; Park Street (L) Limited (Additional Defendants).
The liability trial of the Proceedings took place between June 25 and July 19, 2018, before Mrs Justice Cockerill. Cockerill J handed down her judgment on November 1 2018. In the Judgment, Cockerill found in favour of the Claimants.
The case concerns the recovery of the assets owned by the late billionaire Mr Badri Patarkatsishvili. With the 2018 judgment, Mrs Justice Cockerill established, amongst other things, that Irakli Rukhadze and his business partners breached their fiduciary duties to the Claimants.
Mrs Justice Cockerill ordered that, concerning the Defendants' liability, the Claimants were entitled to elect whether there should be: (i) an inquiry as to equitable compensation or damages; or (ii) an account of profits. On February 14, 2019, the Claimants chose an account of profits.
On March 12, 2019, the Court of Appeals, Hon. Lord Justice Flaux refused permission to appeal the Judgment, which he found careful and well reasoned.
In August 2021, the Claimants applied for and successfully obtained leave to seize the interests of the Individual Defendants in Stichting Media Finance (the "Stichting"), the Dutch foundation. The Stichting is a holding entity of Media Finance BV, which owns 100% of Teleimedi LLC via Georgian Media Production Group LLC. The leave was granted by the Court of Amsterdam to secure a claim that the Claimants have against the Individual Defendants, which is subject to Proceedings. The Stichting (and the Individual Defendants) are currently disputing what claims are covered by the orders.
The Quantum phase trial is listed to last for six weeks.
Currently the defendants own and manage multi-million dollar projects and assets in Georgia, Including the third largest bank by market share ‘Liberty Bank’, largest metallurgy plant in the country ‘Rustavi Steel’, Minority stake in largest cement factory ‘Heidelberg Georgia’, as well as Media holding that owns ‘Imedi’ and ‘GDS’ Channels. Mr. Irakli Rukhadze personally owns the minority stake in ‘Magti’ largest communications company in Georgia.
