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An employment dispute involving a Jersey-based mining company, its aggrieved former boss, and the firm's Chinese owner has reached its next stage – with the Royal Court allowing the ex-CEO to be paid $13.5m.
In the latest chapter of a lengthy litigation, Jersey resident Oleg Sheyko can use the money paid by his former employer into the court to invest for his own benefit.
Ukrainian-born Mr Sheyko was head of Consolidated Minerals Limited from July 2017, when he moved to the island.
However, he resigned less than a year later, and initiated court proceedings in July 2018, claiming that CML’s new Chinese owner, which had bought the business in May 2017, had undermined his authority.
CML, however, argued that Mr Sheyko was incompetent and difficult, and resigned because he had not got rich from an anticipated public listing.
What followed is a protracted court battle, which has involved the Royal Court trying to access documents and correspondence sent between key players, including Chinese senior executives of the parent company, which could prove or disprove the claims.
This process of ‘discovery’, which appeared to involve the Chinese State, frustrated the court so much that it decided that CML’s defence against the civil claim could not continue, therefore Mr Sheyko’s claim was successful.
Pictured: In an earlier judgment, the Royal Court said that CML had failed to provide details of text conversations that had taken place via the Chinese WeChat messaging service.
CML appealed this decision, which also failed, but it now hopes to take the case to the Privy Council, based on the principles of ‘doléance’, which is an ancient right of remedy where a judgment “contains a manifest judicial error” or where a court has refused to hear an appeal, despite a right of appeal existing.
Mr Sheyko applied to be paid all sums held by the Royal Court because, he argued, all rights of appeal open to CML had been exhausted.
CML argued for a stay, raising the issue of its appeal to the Privy Council, but judge Advocate Matthew Thompson, the Master of the Royal Court, concluded that “there were no reasonable prospects of success to show a manifest judicial error to support a petition in doléance”.
He said: “Leave to appeal has been refused by both the Royal Court and the Court of Appeal. The only factor therefore left is the risk of the plaintiff not repaying [should the doléance be successful].
“In relation to that factor, [Mr Sheyko] resides in Jersey with his family and has done since 2017. His family home is here, and he has a young child at school.
“Prior to coming to Jersey, he had spent the previous ten years in London. His connections for the last 15 years were therefore either with England or Jersey.
Advocate Thompson added: “[Mr Sheyko] had also made it quite clear that he wanted to invest the monies in court along with other assets he already held.
“The nature of the investments he wished to make which were explained in his evidence also confirmed that [he] had other wealth because the investments were much more sophisticated than the average individual would ever contemplate.
“He therefore clearly owns other property which could be pursued using the various options available to the court if [Mr Sheyko] chose not to return funds.
“While [Mr Sheyko] did not reveal the full extent of his assets, he did not have to do so, and [CML] has no right to police the [Mr Sheyko] assets generally just because the [Mr Sheyko] might be ordered to repay the sums I have ruled he is entitled to.
“The conclusion I reached for the reasons set out above is that there is no evidence of irremediable harm but only a potential difficulty in recovering funds if, contrary to the view I reached, a petition in doléance is available as a remedy to the defendant.
“This was not solid grounds to justify a stay.”
CML were ordered to pay the US$13.5m into the Royal Court in an earlier judgment given last July.
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