Union Bank of Finland Ltd v Lelakis - Court of Appeal (Henry and Saville LJJ) - 13 May 1996

Practice - Court ordering judgment debtor to attend for examination - Judgment debtor domiciled in Greece - Whether orders validly served out of jurisdiction

The defendant, an experienced Greek shipowner, wished to build a new ship. A company of which he was the sole shareholder borrowed a total of US$ 10 million from the plaintiff bank. He entered into two personal guarantees in relation to that loan. In August 1994 the plaintiff served notices of default and demands for payment under the guarantees on the defendant. On 14 September the plaintiff issued a writ for recovery of the sums due. The writ was purportedly served in the United Kingdom under submission to jurisdiction clauses contained in the guarantees. Judgment in default of service was obtained for a sum in excess of US$ 8 million.