ABFA Commodities Trading Limited v Petraco Oil Company SA

ABFA Commodities Trading Limited v Petraco Oil Company SA

Petraco is entitled to the consequences of beating its Part 36 offer, but its dishonest conduct regarding the Petraco Knowledge issue justifies a reduction to 40% of its costs on an indemnity basis from 10 July 2021. The Part 36 offer was a genuine attempt to settle. Petraco is entitled to 100% of its costs on a standard basis up to 9 July 2021, and 40% thereafter on an indemnity basis. The appropriate interest uplift is 3% over US Prime on damages (max 10%) and 4% over Bank of England base rate on costs (max 10%). Petraco is entitled to an interim payment of £1.9m on account of costs. VTB Commodities has no legal or equitable interest in the escrowed funds, which are payable to Petraco.

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
24 November 2024
Procedural Posture
Commercial Court Litigation / Post Trial Judgment on Costs, Interest, Interim Payment, and Declaratory Relief
Outcome
Petraco's application for costs, interest, interim payment, and declaratory relief is granted in part.
Legal Topics
Costs, Part 36 Offers, Interest on Judgments, Sanctions, Declaratory Relief
Civil Procedure Commercial Law Costs Part 36 Offers Interest on Judgments Sanctions Declaratory Relief

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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 Litigation / Post Trial Judgment on Costs, Interest, Interim Payment, and Declaratory Relief

Legal Issues

  1. 1 What are the appropriate orders as to costs and interest following Petraco's successful Part 36 offer?
  2. 2 Should a declaration be made regarding VTB Commodities' interest in sums held by PCB Byrne LLP?
  3. 3 What is the appropriate interim payment on account of costs?

Ratio Decidendi

Petraco is entitled to the consequences of beating its Part 36 offer, but its dishonest conduct regarding the Petraco Knowledge issue justifies a reduction to 40% of its costs on an indemnity basis from 10 July 2021. The Part 36 offer was a genuine attempt to settle. Petraco is entitled to 100% of its costs on a standard basis up to 9 July 2021, and 40% thereafter on an indemnity basis. The appropriate interest uplift is 3% over US Prime on damages (max 10%) and 4% over Bank of England base rate on costs (max 10%). Petraco is entitled to an interim payment of £1.9m on account of costs. VTB Commodities has no legal or equitable interest in the escrowed funds, which are payable to Petraco.

Court Disposition

Petraco's application for costs, interest, interim payment, and declaratory relief is granted in part.

Orders

  • Petraco awarded 100% of its costs on a standard basis up to 9 July 2021.
  • Petraco awarded 40% of its costs on an indemnity basis from 10 July 2021.