News agencies have reported a major disappointment for AHAB in its dispute against the Saad Group and Maan Al-Sanea. As Asa Fitch in The National writes: “A Cayman Islands judge has put a multibillion-dollar fraud claim against Maan al Sanea on hold until authorities in Saudi Arabia reach a decision on the main allegations against the financier. The ruling is a blow to the al Gosaibi family, which has accused Mr al Sanea of running an immense Ponzi scheme.”
The Cayman Islands judge, Chief Justice of the Cayman Islands Grand Court Anthony Smellie, ruled that although Mr al Sanea was properly included in the Cayman lawsuit, “Saudi Arabia may be an available forum, and if so, would be the more appropriate forum for the trial of the underlying allegations of fraud raised personally against him”.
As Taif Info Center has reported in the past, the question of jurisdiction was always likely to be an important factor, with lawyers for Mr Al Sanea arguing all along that the cases should be heard in Saudi. This decision, therefore, could have big consequences and all eyes will now turn to the other jurisdictions – especially New York – where AHAB has launched lawsuits against Maan Al-Sanea.
Chief Justice Smellie upheld the worldwide $9.2 billion freezing order on Al Sanea's assets, ruling that it would remain in effect during the stay in proceedings that he had ordered.
According to Camilla Hall of Bloomberg, AHAB said in a statement that it was “considering the scope” of Smellie’s decision, which directed it to explore whether some of the issues in the case could be tried in Saudi Arabia.
Bloomberg reports that the Saad Group “applauded the decision”, saying in an e-mailed statement that “Saudi Arabia is the correct forum for the principal issues in this dispute to be resolved.”
It seems the Cayman Court has agreed with the Group.
Read The National report here.
Read Bloomberg's story here.
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