Al-Rawas v Pegasus Energy Ltd & Ors [2008] EWHC 617 (QB) (08 April 2008)

Al-Rawas v Pegasus Energy Ltd & Ors [2008] EWHC 617 (QB) (08 April 2008)

Damages under the cross-undertakings are recoverable for actual losses (expenses, management time) and, in the case of the search and seizure order, for general and aggravated damages due to the unjustified invasion and inconvenience, given the order was obtained by intentional non-disclosure. No exemplary damages are recoverable under the undertakings as framed. General damages for the freezing order are only awarded to the one individual who evidenced actual distress; otherwise, no evidence supported further awards.

Citation
[2008] EWHC 617
Parties
Claimant in the Actions/defendant in the Inquiry: Iman Said Abdul Aziz Al-Rawas; Defendant in the Actions/claimant in the Inquiry: Pegasus Energy Limited; Defendant in the Actions/claimant in the Inquiry: HH Sheikh Khalifa bin Hamed Al Thani; Defendant in the Actions/claimant in the Inquiry: Dr Issa Ghanem Al-Kawari; Defendant in the Actions/claimant in the Inquiry: Hawkstone Management Services Limited; Defendant in the Actions/claimant in the Inquiry: Mr Talal Issa Ghanem Al-Kawari; Defendant in the Actions/claimant in the Inquiry: Mr Martin Bowen; Defendant in the Actions/claimant in the Inquiry: Mr Geoffrey White; Defendant in the Actions/claimant in the Inquiry: Mr David Lloyd; Defendant in the Actions/claimant in the Inquiry: Mr Harold Palmer; Defendant in the Actions/claimant in the Inquiry: Ms Frances Cook; Defendant in the Actions/claimant in the Inquiry: Middle East South Africa Energy (Pty) Limited; Defendant in the Actions/claimant in the Inquiry: Pegasus Energy Management Services (Pty) Limited; Defendant in the Actions/claimant in the Inquiry: Vuma Petroleum Ltd (Seychelles); Defendant in the Actions/claimant in the Inquiry: Vuma Zambia Limited (Zambia); Defendant in the Actions/claimant in the Inquiry: Pegasus Energy Zambia Limited (Zambia); Defendant in the Actions/claimant in the Inquiry: Gulf Environment Limited (BVI); Defendant in the Actions/claimant in the Inquiry: Watchhorn Business Corporation (BVI); Defendant in the Actions/claimant in the Inquiry: Beagle Equities Limited (Gibraltar); Defendant in the Actions/claimant in the Inquiry: Fermor Investments Limited (BVI)
Jurisdiction
England and Wales
Judgment Date
08 April 2008
Procedural Posture
Inquiry Into Damages on Cross Undertakings Following Discharge of Search and Seizure and Freezing Orders / Judgment on Assessment of Damages
Outcome
Damages awarded to defendants under the cross-undertakings for expenses, management time, and general/aggravated damages; no exemplary damages awarded.
Legal Topics
Cross Undertaking in Damages, Search and Seizure Orders, Freezing Injunctions, Damages Assessment, Aggravated Damages, Management Time Claims
Civil Procedure Commercial Law Cross Undertaking in Damages Search and Seizure Orders Freezing Injunctions Damages Assessment Aggravated Damages Management Time Claims

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Parties

Iman Said Abdul Aziz Al-Rawas

Claimant in the Actions/defendant in the Inquiry

Pegasus Energy Limited

Defendant in the Actions/claimant in the Inquiry

HH Sheikh Khalifa bin Hamed Al Thani

Defendant in the Actions/claimant in the Inquiry

Dr Issa Ghanem Al-Kawari

Defendant in the Actions/claimant in the Inquiry

Hawkstone Management Services Limited

Defendant in the Actions/claimant in the Inquiry

Mr Talal Issa Ghanem Al-Kawari

Defendant in the Actions/claimant in the Inquiry

Mr Martin Bowen

Defendant in the Actions/claimant in the Inquiry

Mr Geoffrey White

Defendant in the Actions/claimant in the Inquiry

Mr David Lloyd

Defendant in the Actions/claimant in the Inquiry

Mr Harold Palmer

Defendant in the Actions/claimant in the Inquiry

Ms Frances Cook

Defendant in the Actions/claimant in the Inquiry

Middle East South Africa Energy (Pty) Limited

Defendant in the Actions/claimant in the Inquiry

Pegasus Energy Management Services (Pty) Limited

Defendant in the Actions/claimant in the Inquiry

Vuma Petroleum Ltd (Seychelles)

Defendant in the Actions/claimant in the Inquiry

Vuma Zambia Limited (Zambia)

Defendant in the Actions/claimant in the Inquiry

Pegasus Energy Zambia Limited (Zambia)

Defendant in the Actions/claimant in the Inquiry

Gulf Environment Limited (BVI)

Defendant in the Actions/claimant in the Inquiry

Watchhorn Business Corporation (BVI)

Defendant in the Actions/claimant in the Inquiry

Beagle Equities Limited (Gibraltar)

Defendant in the Actions/claimant in the Inquiry

Fermor Investments Limited (BVI)

Defendant in the Actions/claimant in the Inquiry

Procedural Posture

Inquiry Into Damages on Cross Undertakings Following Discharge of Search and Seizure and Freezing Orders / Judgment on Assessment of Damages

Legal Issues

  1. 1 Whether and to what extent damages are recoverable under cross-undertakings given for search and seizure and freezing orders that were set aside for material non-disclosure and lack of sufficient grounds.
  2. 2 Whether general, aggravated, or exemplary damages are recoverable under the undertakings.
  3. 3 How to assess damages for management time, reputational harm, and inconvenience.

Ratio Decidendi

Damages under the cross-undertakings are recoverable for actual losses (expenses, management time) and, in the case of the search and seizure order, for general and aggravated damages due to the unjustified invasion and inconvenience, given the order was obtained by intentional non-disclosure. No exemplary damages are recoverable under the undertakings as framed. General damages for the freezing order are only awarded to the one individual who evidenced actual distress; otherwise, no evidence supported further awards.

Court Disposition

Damages awarded to defendants under the cross-undertakings for expenses, management time, and general/aggravated damages; no exemplary damages awarded.

Orders

  • Watchhorn Business Corporation awarded $74,166.29 (expenses) and $409,337 (interest difference, previously ordered).
  • Hawkstone awarded £3,156.29 (IT costs), £63.71 and £636.90 (photocopying and refreshments), £2,100 (management time), and £45,000 (general/aggravated damages).