Aic Ltd. v Nigeria & Anor [2003] EWHC 1357 (QB) (13 June 2003)

Aic Ltd. v Nigeria & Anor [2003] EWHC 1357 (QB) (13 June 2003)

The State Immunity Act 1978 confers immunity on foreign states from the jurisdiction of UK courts, including proceedings to register and enforce foreign judgments, unless a statutory exception applies. The commercial transaction exception does not extend to registration proceedings, and central bank accounts are immune from execution regardless of beneficial ownership or use. The Nigerian judgment should not have been registered and the attached accounts are immune from execution.

Citation
[2003] EWHC 1357 (QB)
Parties
Claimant / Judgment Creditor: AIC Limited; Defendant / Judgment Debtor: The Federal Government of Nigeria; Defendant / Judgment Debtor: The Attorney General of the Federation of Nigeria; Third Party: The Bank of England; Third Party: HSBC Bank PLC
Jurisdiction
England and Wales
Judgment Date
13 June 2003
Procedural Posture
Application to Register and Enforce Foreign Judgment / High Court (queen's Bench Division) Judgment on Immunity and Enforcement Issues
Outcome
Registration order set aside; judgment not enforceable in the UK against the defendants due to state immunity.
Legal Topics
Enforcement of Foreign Judgments, State Immunity From Jurisdiction, State Immunity From Execution, Commercial Transactions Exception, Central Bank Immunity
Private International Law State Immunity Civil Procedure Enforcement of Foreign Judgments State Immunity From Jurisdiction State Immunity From Execution Commercial Transactions Exception Central Bank Immunity

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Parties

AIC Limited

Claimant / Judgment Creditor

The Federal Government of Nigeria

Defendant / Judgment Debtor

The Attorney General of the Federation of Nigeria

Defendant / Judgment Debtor

The Bank of England

Third Party

HSBC Bank PLC

Third Party

Procedural Posture

Application to Register and Enforce Foreign Judgment / High Court (queen's Bench Division) Judgment on Immunity and Enforcement Issues

Legal Issues

  1. 1 Whether a judgment against a State may be registered and enforced in the UK under the Administration of Justice Act 1920 in light of the State Immunity Act 1978
  2. 2 Whether funds in bank accounts of a central bank, beneficially owned by the government, are liable to execution if used or intended for commercial purposes

Ratio Decidendi

The State Immunity Act 1978 confers immunity on foreign states from the jurisdiction of UK courts, including proceedings to register and enforce foreign judgments, unless a statutory exception applies. The commercial transaction exception does not extend to registration proceedings, and central bank accounts are immune from execution regardless of beneficial ownership or use. The Nigerian judgment should not have been registered and the attached accounts are immune from execution.

Court Disposition

Registration order set aside; judgment not enforceable in the UK against the defendants due to state immunity.

Orders

  • Order of 11 September 2002 registering the Nigerian judgment is set aside.
  • Interim third party debt orders against Bank of England and HSBC accounts are discharged.