Sucden Financial Limited vs TMT Metals AG, Prateek Gupta, Mine Craft Limited – High Court of Justice – [2024] EWHC 1051 (Comm) – Case Summary

This case concerned an application for summary judgment by Sucden Financial Limited (Sucden) against TMT Metals AG (TMT) for a debt of over US$6.6 million, plus interest and costs. The High Court granted summary judgment in favor of Sucden, dismissing TMT's defenses as having no real prospect of success.

TLDR:

• Sucden sought summary judgment for a debt owed by TMT resulting from failure to pay margin calls.
• TMT's defenses of prevention of performance and acting arbitrarily were dismissed.
• The court found no merit in TMT's arguments regarding waiver, estoppel, and inconsistencies in the claim amount.
• Summary judgment was granted for Sucden, and TMT's application to amend the defense was denied.

The dispute arose from TMT's failure to pay margin calls made by Sucden to cover losses on trades affected by market volatility following the Russian invasion of Ukraine. TMT's defenses, including claims of undue pressure to close positions, acting arbitrarily or capriciously, and waiver of prompt payment, were rejected by the court. The court found that Sucden acted within its contractual rights and that TMT's defenses lacked substance and evidence.

Mr. Justice Picken, in a detailed judgment, systematically dismantled TMT's defenses and found that Sucden's claim was straightforward and substantiated by evidence, including part-payments and acknowledgments of the debt by TMT. The court emphasized the importance of contractual terms and the lack of any contemporaneous complaint by TMT regarding Sucden's conduct.

The judgment serves as a reminder of the courts' reluctance to allow cases to proceed to trial where there is no realistic prospect of success, and where defenses are not substantiated by evidence or contradicted by the parties' own actions.

Legal representatives: MR J ROBINSON (instructed by Macfarlanes LLP) for the Claimant. MR R MACHELL (Jury O'Shea LLP) for the First Defendant.

Judicial Panel: MR JUSTICE PICKEN

Case Citation Reference: [2024] EWHC 1051 (Comm)