BL-2023-000501 - [2025] EWHC 2334 (Ch)

At a meeting in Moscow on or around 2 June 2012, the parties to this claim met with the Russian businessman, Mr Vasily Anisimov. They discussed the basis on which the claimant, Mr Kirill Stein, would provide litigation assistance to Mr Anisimov in relation to English High Court proceedings issued by Mr Boris Berezovsky against Mr Anisimov in relation to a Russian mining company, CJSC Holding Company Metalloinvest (“Metalloinvest”). It was agreed at that meeting that USD2 million would be deposited by Mr Anisimov with the defendant, Mr Eugene Jaffe, in relation to his defence of the Berezovsky claim, and that the claimant would be paid USD1 million for his first six months’ work. The sum of USD2 million (“the Payment”) was subsequently paid by a company connected to Mr Anisimov to a Marshall Islands company, Pumula Management Limited (“Pumula”). Pumula was apparently owned by the defendant’s wife and later acknowledged by the defendant to be co-controlled by him. None of the said USD2 million was paid directly to the claimant and only a few thousand pounds were used to defray his expenses.

Mr Stein contends that it was agreed at the said meeting that, when Mr Anisimov later caused the sum of USD2 million to be transferred to Pumula, Mr Jaffe (either alone or together with the company) was as he agreed to be constituted as the trustee of that sum for Mr Stein, pursuant to an express bare trust. Mr Stein further contends that Mr Jaffe breached his duties as trustee of such a bare trust by failing to inform him that the sum constituting trust monies had been received, and by paying the money away for his own benefit rather than accounting for it to Mr Stein. Accordingly, Mr Stein claims equitable compensation or an account of the profit made by Mr Jaffe with the assets said to have been trust assets. Mr Jaffe contends that Mr Stein’s entitlement to payment for his work on behalf of Mr Anisimov was dependent on other steps being taken and that the Payment to Pumula was a gesture of good faith.

The claim was issued by Mr Stein in March 2023, some years after the events in question. This is my judgment following the trial of the claim.