Ivanishvili v Credit Suisse: Forum Non Conveniens & Exclusive Jurisdiction in Trust Dispute

Bidzina Ivanishvili and his family, as beneficiaries of the Mandalay Trust, sued Credit Suisse AG and Credit Suisse Trust Limited in the High Court of Singapore, alleging losses to the trust and other assets managed by Credit Suisse. The defendants applied for a stay of proceedings based on forum non conveniens, arguing that Switzerland was a more appropriate forum. The High Court dismissed the plaintiffs' appeals, finding that Geneva was the forum conveniens due to the banking relationship, location of key witnesses, and the overall shape of the litigation.

1. Case Overview

1.1 Court

High Court of Singapore

1.2 Outcome

Appeals dismissed.

1.3 Case Type

Civil

1.4 Judgment Type

Grounds of Decision

1.5 Jurisdiction

Singapore

1.6 Description

Singapore court dismisses appeal to stay proceedings, finding Geneva a more appropriate forum due to banking relationship and key witness location.

1.7 Decision Date

17 January 2019

2. Parties and Outcomes

Party Name	Role	Type	Outcome	Outcome Type	Counsels
Bidzina Ivanishvili	Plaintiff	Individual	Appeal Dismissed	Lost	N Sreenivasan, Palaniapan Sundaraj, Lim Min, Ranita Yogeeswaran
Ekaterine Khvedelidze	Plaintiff	Individual	Appeal Dismissed	Lost	N Sreenivasan, Palaniapan Sundaraj, Lim Min, Ranita Yogeeswaran
Tsotne Ivanishvili	Plaintiff	Individual	Appeal Dismissed	Lost	N Sreenivasan, Palaniapan Sundaraj, Lim Min, Ranita Yogeeswaran
Gvantsa Ivanishvili	Plaintiff	Individual	Appeal Dismissed	Lost	N Sreenivasan, Palaniapan Sundaraj, Lim Min, Ranita Yogeeswaran
Bera Ivanishvili	Plaintiff	Individual	Appeal Dismissed	Lost	N Sreenivasan, Palaniapan Sundaraj, Lim Min, Ranita Yogeeswaran
Credit Suisse AG	Defendant	Corporation	Application for Stay Granted	Won	Harpreet Singh Nehal, Jordan Tan, Andrew Foo, Ho Wan Yi
Credit Suisse Trust Limited	Defendant	Corporation	Application for Stay Granted	Won	Stanley Lai, Kenneth Lim, Melissa Mak, Afzal Ali, Wong Pei Ting

3. Judges

Judge Name	Title	Delivered Judgment
Valerie Thean	Judge	Yes

4. Counsels

Counsel Name	Organization
N Sreenivasan	Straits Law Practice LLC
Palaniapan Sundaraj	Straits Law Practice LLC
Lim Min	Straits Law Practice LLC
Ranita Yogeeswaran	Straits Law Practice LLC
Harpreet Singh Nehal	Cavenagh Law LLC
Jordan Tan	Cavenagh Law LLC
Andrew Foo	Cavenagh Law LLC
Ho Wan Yi	Cavenagh Law LLC
Stanley Lai	Allen & Gledhill LLP
Kenneth Lim	Allen & Gledhill LLP
Melissa Mak	Allen & Gledhill LLP
Afzal Ali	Allen & Gledhill LLP
Wong Pei Ting	Allen & Gledhill LLP

4. Facts

Bidzina Ivanishvili, a former Prime Minister of Georgia, has been a customer of Credit Suisse AG since 2004.
The plaintiffs are beneficiaries of the Mandalay Trust, a Singapore discretionary trust established on 7 March 2005.
The Trustee delegated its asset management and investment powers under the Trust to the Bank.
The center of management of the plaintiffs’ portfolio of assets was the Geneva branch of the Bank.
Mr. Lescaudron, a portfolio manager at Credit Suisse, gave regular reports to the plaintiffs which were false.
The plaintiffs allege that the Bank, through Mr Lescaudron, made a series of misrepresentations in relation to the value of the Trust and Wellminstone assets.
Mr Lescaudron was convicted in Switzerland of embezzlement, simple and aggravated misappropriation and forgery.

5. Formal Citations

Ivanishvili, Bidzina and others v Credit Suisse AG and another, Suit No 790 of 2017 (Registrar’s Appeals Nos 229 of 2018 and 232 of 2018), [2019] SGHC 6

6. Timeline

Date	Event
2004-01-01	Bidzina Ivanishvili became a customer of Credit Suisse AG.
2005-02-28	Bidzina Ivanishvili signed the Acceptance Documentation, Trust/Company in Geneva for the formation of the Mandalay Trust.
2005-03-07	Mandalay Trust established by declaration of trust.
2005-03-22	Bidzina Ivanishvili settled approximately USD1.1 billion in the Trust.
2005-03-23	USD550 million transferred into accounts in the name of Soothsayer with the Singapore branch of the Bank.
2011-10-25	Life Portfolio International policy commenced with Mr Ivanishvili as the insured person.
2013-07-05	Trustee executed a Deed of Amendment and Restatement in respect of the Trust.
2015-03-01	Mr Ivanishvili agreed to the Bank entering into a framework agreement.
2015-09-01	Bank issued margin calls totalling USD41.01 million on accounts within the Mandalay Trust.
2015-12-01	Bank filed a criminal complaint against Mr Lescaudron in Geneva.
2017-08-07	Plaintiffs commenced suit in New Zealand in respect of losses suffered by the Green Vals Trust.
2017-08-17	Proceedings in Bermuda were filed by the Plaintiffs, Meadowsweet and Sandcay against CS Life.
2017-08-25	Plaintiffs commenced this suit.
2017-11-15	The Bank and the Trustee filed applications for a stay of the proceedings.
2018-02-01	Mr Lescaudron was convicted of embezzlement, simple and aggravated misappropriation and forgery and sentenced to 5 years in prison.
2018-08-31	Senior Assistant Registrar granted the orders.
2018-09-10	Senior Assistant Registrar granted the orders.
2018-10-23	Hearing date.
2018-10-25	Hearing date.
2018-10-30	Hearing date.
2019-01-18	Judgment reserved.

7. Legal Issues

Forum Non Conveniens
- Outcome: The court held that Geneva was the forum conveniens for the dispute.
- Category: Procedural
- Sub-Issues:
  - Location of witnesses
  - Availability of evidence
  - Governing law
  - Shape of litigation
- Related Cases:
  - [1987] AC 460
  - [2008] 4 SLR(R) 543
  - [2011] 1 SLR 391
  - [2017] 2 SLR 265
Exclusive Jurisdiction Clause
- Outcome: The court held that the forum of administration clause was not an exclusive jurisdiction clause for all disputes related to the trust.
- Category: Procedural
- Sub-Issues:
  - Scope of the clause
  - Applicability to parties
- Related Cases:
  - [2014] JCA 089
  - [2014] UKPC 14
  - (2002) 6 ITELR 568
  - [2009] CILR 490
  - [2012] SC (Bda) 72 Civ
  - [1993] 3 SLR(R) 432
  - [1983] 2 Lloyd’s Rep 171
  - [2005] 3 SLR(R) 719

8. Remedies Sought

Declaration that the Amended Trust Deed is void
Account of loss caused to the Mandalay Trust
Equitable compensation to restore the value of the Trust
Damages for misrepresentation
Damages for negligence
Exemplary damages

9. Cause of Actions

Breach of Trust
Negligence
Misrepresentation

10. Practice Areas

Forum Non Conveniens
Jurisdiction
Trusts
Banking Law

11. Industries

Finance

12. Cited Cases

Case Name	Court	Affirmed	Citation	Jurisdiction	Significance
Spiliada Maritime Corporation v Cansulex Ltd	House of Lords	Yes	[1987] AC 460	England and Wales	Governs the principles for granting a stay of proceedings on the basis of forum non conveniens.
CIMB Bank Bhd v Dresdner Kleinwort Ltd	Court of Appeal	Yes	[2008] 4 SLR(R) 543	Singapore	Summarized the principles for granting a stay of proceedings on the basis of forum non conveniens.
JIO Minerals FZC and others v Mineral Enterprises Ltd	Court of Appeal	Yes	[2011] 1 SLR 391	Singapore	Endorsed five non-exhaustive types of connections to determine the most appropriate forum.
Rappo, Tania v Accent Delight International Ltd	Court of Appeal	Yes	[2017] 2 SLR 265	Singapore	Cautioned against applying the five-fold framework in a mechanistic manner when determining forum non conveniens.
La Societe du Gaz de Paris v La Societe Anonyme de Navigation “Les Armateurs Francais”	House of Lords	Yes	(1926) Sess Cas (HL) 13	United Kingdom	The object, under the words ‘forum non conveniens’ is to find that forum which is the more suitable for the ends of justice.
Crociani v Crociani	Jersey Court of Appeal	Yes	[2014] JCA 089	Jersey	The concept of the forum of administration related to the internal administration of the trust and not to hostile litigation.
Crociani v Crociani	Privy Council	Yes	[2014] UKPC 14	United Kingdom	Accepted that the expression “forum of administration” did not have a well-established technical significance.
Koonmen v Bender	Jersey Court of Appeal	Yes	(2002) 6 ITELR 568	Jersey	Held that the forum of administration clause amounted to an exclusive jurisdiction clause.
Helmsman Ltd and another v Bank of New York Trust Company	Cayman Islands Grand Court	Yes	[2009] CILR 490	Cayman Islands	The phrase “forum for administration” in its ordinary meaning does not extend to contentious breach of trust litigation.
Re a Trust	Supreme Court of Bermuda	Yes	[2012] SC (Bda) 72 Civ	Bermuda	The designation of Bermuda as the forum for administration of a trust will ordinarily signify both (a) the exclusive selection of Bermuda as the domicile of the trust, and (b) the exclusive selection of Bermuda as the forum the courts of which will supervise the administration of the trust.
The “Jian He”	Court of Appeal	Yes	[1993] 3 SLR(R) 432	Singapore	The jurisdiction clause applied to “all disputes arising under or in connection with this Bill of Lading”.
The Playa Larga	Court of Appeal	Yes	[1983] 2 Lloyd’s Rep 171	England and Wales	A jurisdiction clause whose scope was “all disputes arising out of this contract” covered a claim in tort.
The Rainbow Joy	Court of Appeal	Yes	[2005] 3 SLR(R) 719	Singapore	Where parties had specified the governing law in a contract of employment, the contractual term would prevail even where an appellant has sued in tort.
VTB Capital plc v Nutritek International Corp and others	United Kingdom Supreme Court	Yes	[2013] UKSC 5	United Kingdom	If the defendant chooses to say nothing, then it would be quite appropriate for the court to proceed on the basis that there is no more (and no less) to the proceedings than will be involved in the claimant making, or trying to make, out its case.
Rickshaw Investments Ltd v Nicolai Baron von Uexhall	High Court	Yes	[2007] 1 SLR(R) 377	Singapore	The location and compellability of witnesses carry greater weight in disputes involving questions of fact.
Trisuryo Garuda Nusa Pte Ltd v SKP Pradiksi (North) Sdn Bhd and another and another appeal	Court of Appeal	Yes	[2017] 2 SLR 814	Singapore	Emphasised the importance of governing law in the context of Singapore companies and trust claims against such companies.
Humpuss Sea Transport Pte Ltd (in compulsory liquidation) v PT Humpuss Intermoda Transportasi TBK and another	High Court	Yes	[2016] 5 SLR 1322	Singapore	Dealt with overlapping claims and partial stays.
Ivanishvili v Credit Suisse AG	High Court of New Zealand	Yes	[2018] NZHC 1755	New Zealand	Grounds of decision of Justice Venning, Chief High Court Judge of the High Court of New Zealand, Ivanishvili v Credit Suisse AG [2018] NZHC 1755, dated 17 July 2018, were relied on by both sides in argument.

13. Applicable Rules

Rule Name
No applicable rules

14. Applicable Statutes

Statute Name	Jurisdiction
Trustees Act	Singapore

15. Key Terms and Keywords

15.1 Key Terms

Forum non conveniens
Exclusive jurisdiction clause
Mandalay Trust
Trustee de son tort
Misrepresentation
Geneva
Singapore
Lescaudron
Trust administration
Banking relationship

15.2 Keywords

Trust
Forum non conveniens
Jurisdiction
Credit Suisse
Singapore
Geneva

16. Subjects

Trusts
Banking
Conflict of Laws
Civil Procedure

17. Areas of Law

Conflict of Laws
Trust Law
Civil Procedure