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 limited to compensatory and aggravated damages where orders were obtained by intentional misrepresentation, but exemplary damages are excluded by the terms of the undertakings. Management time is recoverable only where business disruption is established. General damages for stigma and inconvenience are awarded where justified by the facts, but not for emotional distress absent exceptional circumstances.

Citation
[2008] EWHC 617 (QB)
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 Following Discharge of Search and Seizure and Freezing Orders / Post Judgment Damages Assessment
Outcome
Damages awarded to defendants under cross-undertakings; exemplary damages denied.
Legal Topics
Cross Undertaking in Damages, Search and Seizure Orders, Freezing Orders, Misrepresentation, Aggravated Damages, Management Time Claims
Civil Procedure Contract Law Company Law Cross Undertaking in Damages Search and Seizure Orders Freezing Orders Misrepresentation Aggravated Damages +1 more

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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 Following Discharge of Search and Seizure and Freezing Orders / Post Judgment Damages Assessment

Legal Issues

  1. 1 Assessment of damages under cross-undertakings following discharge of search and seizure and freezing orders
  2. 2 Entitlement to general, aggravated, and exemplary damages
  3. 3 Recovery of management time as damages

Ratio Decidendi

Damages under the cross-undertakings are limited to compensatory and aggravated damages where orders were obtained by intentional misrepresentation, but exemplary damages are excluded by the terms of the undertakings. Management time is recoverable only where business disruption is established. General damages for stigma and inconvenience are awarded where justified by the facts, but not for emotional distress absent exceptional circumstances.

Court Disposition

Damages awarded to defendants under cross-undertakings; exemplary damages denied.

Orders

  • Watchhorn Business Corporation awarded $74,166.29 expenses and $409,337 interest difference.
  • Hawkstone Management Services Limited awarded £3,156.29 IT costs, £63.71 and £636.90 for photocopying and refreshments, £2,700 management time, £45,000 general/aggravated damages.