Berezovsky v Michaels
Encyclopedia
Berezovsky v Michaels is an English
libel decision in which the House of Lords
allowed Boris Berezovsky
and Nikolai Glushkov
to sue Forbes
for libel in UK courts, despite the allegedly libelous material relating to their activities in Russia
.
The case was also reported as Berezovsky v Forbes Inc.
described the plaintiffs, Boris Berezovsky
and Nikolai Glushkov
, as "criminals on an outrageous scale." According to the judgement, the circulation of this issue was as follows:
The parties also agreed that, given online availability, the issue would have had about 6,000 readers in the UK.
Despite these relative circulation numbers, the plaintiffs brought their action in the UK.
[1987] A.C. 460), found that the plaintiffs' connection with England were "tenuous" and stayed the proceedings. After the plaintiffs provided further evidence of their connection with England on appeal, the Court of Appeal overturned the decision, and held that per the Spilada test, where there was strong evidence of the plaintiffs connections with England, England was a suitable forum for the trial.
In his dissent, Lord Hoffman observed:
.
England
England is a country that is part of the United Kingdom. It shares land borders with Scotland to the north and Wales to the west; the Irish Sea is to the north west, the Celtic Sea to the south west, with the North Sea to the east and the English Channel to the south separating it from continental...
libel decision in which the House of Lords
Judicial functions of the House of Lords
The House of Lords, in addition to having a legislative function, historically also had a judicial function. It functioned as a court of first instance for the trials of peers, for impeachment cases, and as a court of last resort within the United Kingdom. In the latter case the House's...
allowed Boris Berezovsky
Boris Berezovsky
Boris Abramovich Berezovsky is a Russian businessman, mathematician, member of Russian Academy of Sciences, and a former government official and Deputy in the Duma. He is often described as a Russian oligarch. Although once a supporter of Vladimir Putin, Berezovsky clashed with the new president...
and Nikolai Glushkov
Nikolai Glushkov
Nikolay Glushkov is a former Deputy Director-General of Aeroflot and a former Finance Manager of AvtoVAZ.Glushkov had been AvtoVAZ's Finance Chief until he left his job in autumn 1995 and was appointed as Deputy General Director of Aeroflot on request from Yevgeny Shaposhnikov in February...
to sue Forbes
Forbes
Forbes is an American publishing and media company. Its flagship publication, the Forbes magazine, is published biweekly. Its primary competitors in the national business magazine category are Fortune, which is also published biweekly, and Business Week...
for libel in UK courts, despite the allegedly libelous material relating to their activities in Russia
Russia
Russia or , officially known as both Russia and the Russian Federation , is a country in northern Eurasia. It is a federal semi-presidential republic, comprising 83 federal subjects...
.
The case was also reported as Berezovsky v Forbes Inc.
Facts
The 30 December 1996 edition of ForbesForbes
Forbes is an American publishing and media company. Its flagship publication, the Forbes magazine, is published biweekly. Its primary competitors in the national business magazine category are Fortune, which is also published biweekly, and Business Week...
described the plaintiffs, Boris Berezovsky
Boris Berezovsky
Boris Abramovich Berezovsky is a Russian businessman, mathematician, member of Russian Academy of Sciences, and a former government official and Deputy in the Duma. He is often described as a Russian oligarch. Although once a supporter of Vladimir Putin, Berezovsky clashed with the new president...
and Nikolai Glushkov
Nikolai Glushkov
Nikolay Glushkov is a former Deputy Director-General of Aeroflot and a former Finance Manager of AvtoVAZ.Glushkov had been AvtoVAZ's Finance Chief until he left his job in autumn 1995 and was appointed as Deputy General Director of Aeroflot on request from Yevgeny Shaposhnikov in February...
, as "criminals on an outrageous scale." According to the judgement, the circulation of this issue was as follows:
| Subscriptions | Newsstands | Total | |
|---|---|---|---|
| United States & Canada | 748,123 | 37,587 | 785,710 |
| England & Wales | 566 | 1349 | 1915 |
| Russia | 13 | 0 | 13 |
The parties also agreed that, given online availability, the issue would have had about 6,000 readers in the UK.
Despite these relative circulation numbers, the plaintiffs brought their action in the UK.
Proceedings
At first instance, Popplewell J. held that where a party was not subject to a jurisdiction, it was for the court to determinge the appropriate forum, (citing Spiliada Maritime Corp v Cansulex LtdSpiliada Maritime Corp v Cansulex Ltd
Spiliada Maritime Corp v Cansulex Ltd [1986] 3 WLR 972, 3 All ER 843, [1987] A.C. 460 is a leading decision of the House of Lords on the doctrine of forum non conveniens.-Facts:...
[1987] A.C. 460), found that the plaintiffs' connection with England were "tenuous" and stayed the proceedings. After the plaintiffs provided further evidence of their connection with England on appeal, the Court of Appeal overturned the decision, and held that per the Spilada test, where there was strong evidence of the plaintiffs connections with England, England was a suitable forum for the trial.
Judgment
The House of Lords upheld the Court of Appeal's decision by a 3-2 majority (Lord Hoffman and Lord Hope of Craighead dissenting), dismissing the appeals, and finding that on the additional evidence provided England was an appropriate forum and the trial of actions should proceed in England.In his dissent, Lord Hoffman observed:
The plaintiffs are forum shoppers in the most literal sense. They have weighed up the advantages to them of the various jurisdictions that might be available and decided that England is the best place in which to vindicate their international reputations. They want English law, English judicial integrity and the international publicity which would attend success in an English libel action.
Significance
Scholars and commentators have suggested that the case made the UK more popular for libel tourismLibel tourism
Libel tourism is a term first coined by Geoffrey Robertson to describe forum shopping for libel suits. It particularly refers to the practice of pursuing a case in England and Wales, in preference to other jurisdictions, such as the United States, which provide more extensive defences for those...
.