Govt-affiliated media outlet owner loses appeal in multi-million dollar legal battle involving late tycoon Patarkatsishvili

Irakli Rukhadze, the owner of government-affiliated media outlets Imedi TV and GDS, has lost his appeal in a lengthy legal battle over the multi-million dollar compensation owed to companies Revoker LLP and Recovery Partners GP Limited.

The Supreme Court of England and Wales upheld earlier rulings that Rukhadze, along with his business partners Benjamin Marson and Igor Alekseev, must pay more than $170 million in damages for their involvement in a commercial conspiracy regarding the assets of late billionaire Badri Patarkatsishvili.

The decision, announced on Wednesday, brings to a close a series of legal proceedings dating back to 2018, when Rukhadze and his associates were found to have breached fiduciary duties after the death of Patarkatsishvili in 2008.

The court ruled that the trio intentionally removed Salford Capital Partners International, the investment firm entrusted with managing Patarkatsishvili’s assets, from a vital recovery project. In doing so, they took control of the project through their own company, Hunnewell Partners, and reaped substantial profits from it.

Despite Rukhadze’s appeals to the Court of Appeal and the Supreme Court, the seven-judge panel unanimously rejected his claims, confirming the earlier rulings.

The compensation, which includes legal fees and interest, now exceeds $170 million and is expected to continue growing until a final settlement is reached.

Additionally, the court had previously ordered the seizure of part of Rukhadze’s assets in 2021 as part of the judgment.

The case centers on the aftermath of Patarkatsishvili’s death, when his chief financier Eugene Jaffe, along with Salford Capital Partners, took on the responsibility of recovering and managing Patarkatsishvili’s vast estate.

Rukhadze, a former high-ranking manager at Salford, played a central role in the recovery process but, according to the court, manipulated events to redirect the project and its assets to his own benefit.

Rukhadze’s holding company, Hunnewell Partners, controls Liberty Bank, Rustavi Metallurgical Plant, and a stake in Honeywell Cement (formerly HeidelbergCement), as well as Imedi and GDS television stations.

In its final judgment, the court highlighted the serious harm caused to Patarkatsishvili’s family and their attempts to reclaim their late relative’s fortune, with over $2 billion in assets eventually returned to them.