ABFA Commodities Trading Ltd v Petraco Oil Company SA (Re Consequential Matters) [2024] EWHC 706 (Comm) (27 March 2024)

ABFA Commodities Trading Ltd v Petraco Oil Company SA (Re Consequential Matters) [2024] EWHC 706 (Comm) (27 March 2024)

Petraco is entitled to the benefits of having beaten its Part 36 offer, but its dishonest conduct in litigation justifies a substantial reduction in recoverable costs. The Part 36 offer was a genuine attempt to settle. Interest is awarded at a moderate uplift over base rates, and the additional amount under CPR 36.17(4)(d) is granted. The escrowed sum is payable to Petraco and not subject to sanctions as VTB Commodities has no legal or equitable interest in it.

Citation
[2024] EWHC 706 (Comm)
Parties
Claimant: ABFA Commodities Trading Limited (formerly VTB Commodities Trading DAC, previously VTB Capital Trading Limited); Intervener: Petraco Oil Company SA
Jurisdiction
England and Wales
Judgment Date
27 March 2024
Procedural Posture
Commercial Court Claim / Post Trial Judgment on Costs, Interest, and Ancillary Orders
Outcome
Petraco awarded costs and interest with reductions for dishonest conduct; declaration made regarding escrowed sum; interim payment ordered.
Legal Topics
Costs, Part 36 Offers, Interest on Judgments, Sanctions, Escrow/interpleader, Dishonesty in Litigation
Civil Procedure Commercial Law Costs Part 36 Offers Interest on Judgments Sanctions Escrow/interpleader Dishonesty in Litigation

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Parties

ABFA Commodities Trading Limited (formerly VTB Commodities Trading DAC, previously VTB Capital Trading Limited)

Claimant

Petraco Oil Company SA

Intervener

Procedural Posture

Commercial Court Claim / Post Trial Judgment on Costs, Interest, and Ancillary Orders

Legal Issues

  1. 1 Appropriate costs order following a successful Part 36 offer where the successful party engaged in dishonest conduct
  2. 2 Entitlement to interest and the applicable rate under CPR 36.17(4) and Judgments Act 1838
  3. 3 Entitlement to an additional amount under CPR 36.17(4)(d)

Ratio Decidendi

Petraco is entitled to the benefits of having beaten its Part 36 offer, but its dishonest conduct in litigation justifies a substantial reduction in recoverable costs. The Part 36 offer was a genuine attempt to settle. Interest is awarded at a moderate uplift over base rates, and the additional amount under CPR 36.17(4)(d) is granted. The escrowed sum is payable to Petraco and not subject to sanctions as VTB Commodities has no legal or equitable interest in it.

Court Disposition

Petraco awarded costs and interest with reductions for dishonest conduct; declaration made regarding escrowed sum; interim payment ordered.

Orders

  • Petraco awarded 100% of its costs on a standard basis up to 6 November 2019.
  • Petraco awarded 100% of its costs on a standard basis from 7 November 2019 to 9 July 2021.