Michael Cherney 311.
(photo credit: Courtesy Michael Cherney blog)
LONDON – The New York Supreme Court has rejected a plea by Russian-born Israeli
oligarch Michael Cherney to transfer to Israel a court case involving Israeli
oligarch Alexander Gliklad and a disputed $270 million.
On Thursday, the
New York court denied an objection to the court’s jurisdiction from Cherney’s
lawyers over a case involving Gliklad, a Ukrainian- born Israeli living in New
The court reaffirmed an injunction issued in July prohibiting
Cherney from prosecuting the case in Israel, finding that there is “no basis to
hold that it erred in its prior decision.”
At the time, the judge said
that allowing the case to go ahead in Israel “would result in a serious waste of
the court’s scarce resources and time.
“Mr. Cherney has proceeded in a
way that is not conducive to the timely resolution of this case. A parallel
lawsuit in Israel would result in duplicative litigation and may interfere with
the court’s adequately enforcing this jurisdiction’s policies and resolving the
issues before it,” the presiding judge said in July.
“Weighing up all the
factors, the court is of the opinion that New York is an appropriate forum for
this litigation and for this reason denies Mr.
Cherney’s motion,” the
judge said in his ruling last week rejecting Cherney’s argument that New York
was an “inconvenient forum” for him to litigate.
The case was brought to
the New York court by Gliklad in 2009. He accuses Cherney of owing him $270m.,
in accordance with a signed agreement for a stake in the Russian coal-producing
organization Kuzbassrazrezugol, a former state enterprise privatized in the
Cherney claims he mistakenly signed the agreement with
Gliklad after “consuming a tremendous amount of vodka” during a drinking session
in Vienna in 2003.
The New York court also labeled Cherney’s defense as
“not probable” to succeed and concluded after a full evaluation of both sides’
factual arguments that Gliklad “established a likelihood of success on the
Last week, Cherney announced that he would not be testifying at
a court case involving Russian oligarch Roman Abramovich and former business
partner Boris Berezovsky, currently taking place at the High Court in
Cherney was expected to give evidence last week via video link,
as a witness for Berezovsky, who alleges that Abramovich “threatened” and
“intimidated” him in order to coerce him into selling his stake in Russian oil
company Sibneft. He is seeking £3.5 billion from Abramovich.
Cherney confirms he will not be testifying in the Berezovsky vs Abramovich court
case and he will not be commenting further,” a London spokesman for Cherney told
The Jerusalem Post last week. “His own lawsuit against Oleg Deripaska is due to
be heard in London next April.”
The case is likely to spark huge media
attention on Monday, when Abramovich is set to give evidence