Stephen Moverley Smith QC

Barrister

Call 1985
QC 2002
stephen.moverley.smith@xxiv.co.uk
Clerks 020 7691 2424

Stephen specialises in litigation and arbitration in the fields of commercial, company, trusts and business law. Clients refer to him as "an approachable and trustworthy advisor, legally adept and thorough - winning qualities" (Legal 500).

With a background of high profile work for the DTI and Inland Revenue as junior counsel to the Crown (Chancery) prior to taking silk in 2002, Stephen has developed an extensive practice in the fields of hostile corporate and trust litigation, insolvency, civil fraud and joint venture disputes (in both a corporate and partnership context), often for private clients.

Stephen has practiced in the regulatory field for many years and was appointed a Joint Inspector by the DTI (now BERR) to investigate allegations of market abuse. His on-going regulatory work includes cases is in the area of collective Investment schemes and land banking.

Stephen has an extensive off-shore practice, particularly in the British Virgin Islands (since 1995) and Cayman Islands. He is regularly involved in multi-jurisdictional disputes, advising on global strategy, interim remedies, conflicts of law and asset recovery and appearing before courts and arbitral tribunals in a wide variety of jurisdictions.

Recent notable cases include acting for the Chinese defendants in the battle for control of the largest drinks company in China (Danone v Wahaha); acting for the liquidators in the liquidation of the biggest investor in the Madoff fraud (Fairfield Sentry Ltd) and for the Moscow patriachate in a dispute as to ownership of the Russian Orthodox Cathedral in London.

Areas of experience Select all

+ Arbitration

+ Civil Fraud, Asset Tracing & Recovery

+ Commercial Litigation

Stephen Moverley Smith has dealt with all manner of business disputes, amassing particular experience in matters with an international dimension. Legal 500/2011 recommends him whilst Chambers & Prs recommends him for commercial chancery and offshore work. He is said to perform "admirably, calmly and coherently in court".

His more notable cases include:

Michailidis v Caylon: Proceedings in Gibraltar to recover US$15m from a French bank on the grounds of "knowing receipt".
eChinaCash Inc v Light Year Partners LLP: claim to recover the shares in a BVI company whose subsidiary operates China's largest loyalty card programme.
Black Swan Investments Ltd v Harvest View Ltd: fraud claim in relation to the importation of vehicles into South Africa. A seminal case on freezing injunctions and the application of the Siskina principle to non-UK jurisdictions.
Danone -v- Wahaha : a very high profile joint venture dispute between Danone and the largest drinks producer in China. Muliti-jurisdictional litigation with proceedings in the British Virgin Islands and Samoa and a series of associated SCC arbitrations in Stockholm.
Kensington International Ltd -v- Montrow International : acting for the claimants in $100 million soverign debt dispute litigated in the British Virgin Islands.
Re Fairfield Sentry Ltd : acting for the liquidators in relation to claims arising from the collapse of the largest of the Madoff feeder funds.
Vee Networks Ltd v Econet Ltd : a series of commercial arbitrations in Nigeria and England concerning the operation and development of a mobile telephone network in Africa and the enforcement of rights of premption. Stephen acted for a minority shareholder.
Isoft Group plc v Misys Holdings Ltd : a dispute as to whether the vendorunder a share sale agreement had a binding obligation to offer after-acquired property to the purchaser. Stephen acted for the vendor.
Re Norman Island : a commercial Dispute relating to the mooring rights of a private island in the Caribbean.
Tasarruf Mevduati Sigorta Fonu v Merrill Lynch Bank & Trust Company (Cayman) Ltd & Ors [2011] UKPC 17 (Privy Council): The Privy Council has decided that a judgment debtor who has placed money in trust but retained a power of revocation over the trust can be forced to exercise the power for the benefit of his creditors.
Watford Petroleum Ltd -v- Interoil Trading SA : large scale litigation (a section 459 Petition and four related claims) arising out of a joint venture for refining and selling oil in Ukraine. Stephen acted for the defendants.

+ Company

Stephen Moverley Smith has extensive experience within the company law sphere, as recognised by both Chambers & Partners and Legal 500. Whilst regularly advising and acting in relation to all aspects of company law, ranging from boardroom battles and shareholder claims to directors’ disqualification (which he dealt with for many years as a member of the Treasury Solicitor’s ‘A’ Panel). He is particularly renowned for his expertise in relation to complex international joint venture disputes, regularly advising on global strategy, related conflict of law issues and interim remedies.

His many cases include:

Franbar Holdings Ltd v Casualty Plus Ltd : acting in a shareholder dispute over pre-emption rights contained in a shareholders' agreement.
Re Reserve International Ltd : acting for a BVI investment company in relation to a dispute about the compulsory redemption of shares.
Re GVEC IV Ltd : acting for an international bank in a fraud claim against a director of a company in which the bank held share warrants.
Danone v Wahaha : a massive joint venture dispute over the operation of the largest drinks company in China. Stephen was acting for the successful defendants in litigation in the BVI and Samoa and associated arbitrations in Stockholm.
Re Grand Bahamas Port Authority : a long running Bahamas boardroom battle over the port company operating Grand Bahama - Stephen was acting for one of the directors.
Vee Networks Ltd v Econet Wireless Ltd : a dispute about pre-emption rights in a Nigerian mobile telephone company. Stephen acted in arbitrations in England and Nigeria.
Re Blue Ribbon Ltd : acting for a shareholder in a dispute about the ownership and operation of a BVI company.
Re Weiner : acting for a shareholder in a dispute about the operation of a shareholders' agreement.
Watford Petroleum Ltd -v- Interoil Trading : large scale litigation (a section 459 Petition and four related claims) arising out of a joint venture for refining and selling oil in Ukraine.
Astian Group Ltd -v- TNK : acting for a minority shareholder pursing a derivative action against a BVI joint venture oil company operating in Russia.
Fiske Nominees Ltd & Ors -v- Dwyka Diamonds Ltd : acting for the successful claimant who established that it was necessary, when making a takeover bid, for the majority shareholders to give the minority shareholders sufficient information to make an informed decision on any share purchase offer.
In the matter of Ciro Citterio Menswear plc : a dispute as to the application of s. 330 Companies Act 1985 to an informal loan made to a director. Stephen acted for the administrators.
Re Forcesun Ltd : an example of the many public interest winding up petitions on which Stephen appeared for the Secretary of State.
Re Wilmott Trading Ltd : establishing that a waste management licence did not vest as bona vacantia on the dissolution of a company. Stephen acted for the Environment Agency.
Re Rhonda Waste Disposal Ltd : a seminal case as to the ability of the Environment Agency to prosecute a company in administration for breaches of a waste management licence. Stephen acted for the Environment Agency.
Re H Laing Demolition Contractors Ltd : a leading case on shadow and de factor directors in the context of directors' disqualification. Stephen acted for the Secretary of State on this and many other directors' disqualification applications.
Re Double S Printers Ltd (In liquidation) : acting for the Inland Revenue in successfully contending that a director's debenture securing his loan to the company to stave off insolvency constituted a floating charge.
eChinaCash Inc v Light Year Partners LLP : acting for the claimants in dispute about the ownership of shares in a BVI company operating the largest loyalty card programme in China

+ Banking and Financial Services

+ Hedge Funds & Structured Investment Vehicles

+ Insolvency

With a background acting for the department of trade and industry in relation to public interest winding up petitions and directors' disqualification, and the inland revenue, environment agency and treasury solicitor in relation to many other aspects of insolvency, Stephen has developed a very extensive business restructuring/ insolvency experience ranging over many years. More recently he has been involved in a wide range of international cases raising cross-border insolvency issues, including the operation of UNCITRAL model law provisions in a variety of jurisdictions and the interplay with Chapter 15 recognition in the US. He is recommended for insolvency in Legal 500/2011 which comments that he is "accessible and a real team player".

His recent cases include:

Gallea Ltd: proceedings in the BVI regarding the liquidation of a BVI company.
Spectrum Galaxy Fund Ltd: Creditor seeking to prevent the termination of the liquidation of a hedge fund on the grounds of a change in the law following Westford (see below).
Quantek Opportunity Fund Ltd: Stephen successfully represented a US$2 billion hedge fund in resisting attempts to wind it up on the grounds of loss of substratum, persuading the BVI court not to follow a line of authority developed in Cayman.
Fairfield Sentry Ltd : acting for the liquidators of the largest Madoff feeder fund in relation to a wide variety of claims made by and against it
Westford Special Situations Fund Ltd : acting for the fund in its successful appeal against a winding up order obtained by a redeeming investor claiming to be a creditor
Re a Company : resisting a claim by a redeeming investor to wind up a hedge fund
Re Kaupthing Bank (IOM) : acting in relation to a claim in the insolvency of an offshore bank
Atala Group Ltd : acting for a creditor appealing the rejection of its proof of debt
Re: Kingate Global Ltd : acting in relation to the liquidation of the fund
Re: Reserve International Ltd : acting for a money market liquidity fund in relation to an application by redeeming shareholders to appoint liquidators
Re a Company : obtaining the appointment of provisional liquidators in a sovereign debt claim
Hicking v Baker : (CA) acting for a bankrupt successfully appealing a committal order made under s. 364 Insolvency Act 1986
Re : Westbond : acting in relation to the insolvency of an offshore bank

+ Trusts, Probate & Estates

As a leading commercial Chancery barrister recommended by both the current editions of Chambers & Partners and Legal 500, Stephen has very considerable experience of trust, probate and estate matters. While many of his cases are highly confidential, the following examples provide an indication of the scope of his practice:

Tasarruf Mevduati Sigorta Fonu v Merrill Lynch Bank & Trust Company (Cayman) Ltd & Ors [2011] UKPC 17 (Privy Council): The Privy Council has decided that a judgment debtor who has placed money in trust but retained a power of revocation over the trust can be forced to exercise the power for the benefit of his creditors.
Dean v Bowlby : a dispute as to whether the Russian Orthodox Cathedral in London is held on trust for the Moscow or Constantinople patriachates. Stephen acted for the successful Moscow patriachate.
Re G Trust : an application dealing with the licensing of protectors under the BVI Bank and Trust Companies Act 1990 and the consequences of acting without a licence.
Re H Trust : an application in relation to the appointment of protectors of a family settlement and the requirement of independence in relation to that appointment
Re DM Trust : advising in relation to distributions to be made by a employee benefit trust following the sale of the underlying business.
Re B Trust : a dispute as to the liability of trustees of a family settlement in relation to a sale of trust assets. Stephen acted for the trustee
Re: G : This cases relates to a number of offshore trusts in which an Asian dynasty had placed their wealth. It is possible that certain actions are invalid or ultra vires. There are US$13 billion tax consequences.
Re Corbett : acting in relation to a series of issues concerning the administration of a large estate.
Re R Trust : a proprietary claim to trust assets. Stephen acted for the trustee.
T Choithram International SA -v- Pagarani & Ors : a seminal case which ultimately went to the Privy Council as to the ability of a settlor to gift shares to a charitable foundation by an oral declaration of trust.