Eurasian Natural Resources Corporation Limited v Dechert LLP & Anor

Eurasian Natural Resources Corporation Limited v Dechert LLP & Anor

The breaches of duty by Dechert, Gerrard, and the SFO were concurrent and cumulative causes of ENRC's unnecessary legal and third-party costs and wasted management time. The SFO's breaches were an effective cause of the losses and the opening of the criminal investigation. The losses were not too remote and were reasonably foreseeable. ENRC did not fail to mitigate its losses. Liability for damages is apportioned 75% to Dechert/Gerrard and 25% to the SFO for unnecessary costs and wasted management time; Dechert/Gerrard are 100% liable for unnecessary work. Exemplary damages are not awarded against the SFO as the threshold for such relief was not met.

Parties
Claimant: Eurasian Natural Resources Corporation Limited; First Defendant (2017 Action), Third Party (2019 Action): Dechert LLP; Second Defendant (2017 Action), Fourth Party (2019 Action): David Neil Gerrard; Third Party (2017 Action), Defendant (2019 Action): Director of the Serious Fraud Office
Jurisdiction
England and Wales
Judgment Date
11 October 2024
Procedural Posture
Civil (commercial Court, England and Wales) / Judgment After Phase 1 a Trial (causation and Loss)
Outcome
Judgment for the Claimant (ENRC) against Dechert LLP, David Neil Gerrard, and the Director of the Serious Fraud Office on causation and loss; quantum to be finalised by the parties.
Legal Topics
Inducement to Breach of Contract, Misfeasance in Public Office, Negligence, Damages, Contribution, Remoteness, Mitigation, Exemplary Damages
Tort Contract Professional Negligence Public Law Inducement to Breach of Contract Misfeasance in Public Office Negligence Damages +4 more

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Parties

Eurasian Natural Resources Corporation Limited

Claimant

Dechert LLP

First Defendant (2017 Action), Third Party (2019 Action)

David Neil Gerrard

Second Defendant (2017 Action), Fourth Party (2019 Action)

Director of the Serious Fraud Office

Third Party (2017 Action), Defendant (2019 Action)

Procedural Posture

Civil (commercial Court, England and Wales) / Judgment After Phase 1 a Trial (causation and Loss)

Legal Issues

  1. 1 Whether breaches of duty by Dechert LLP, David Neil Gerrard, and the SFO caused ENRC to incur unnecessary legal and third-party costs and wasted management time;
  2. 2 Whether the SFO's breaches caused the opening of a criminal investigation into ENRC;
  3. 3 Whether losses claimed were too remote or not reasonably foreseeable;

Ratio Decidendi

The breaches of duty by Dechert, Gerrard, and the SFO were concurrent and cumulative causes of ENRC's unnecessary legal and third-party costs and wasted management time. The SFO's breaches were an effective cause of the losses and the opening of the criminal investigation. The losses were not too remote and were reasonably foreseeable. ENRC did not fail to mitigate its losses. Liability for damages is apportioned 75% to Dechert/Gerrard and 25% to the SFO for unnecessary costs and wasted management time; Dechert/Gerrard are 100% liable for unnecessary work. Exemplary damages are not awarded against the SFO as the threshold for such relief was not met.

Court Disposition

Judgment for the Claimant (ENRC) against Dechert LLP, David Neil Gerrard, and the Director of the Serious Fraud Office on causation and loss; quantum to be finalised by the parties.

Orders

  • ENRC entitled to damages for unnecessary work, unnecessary costs, and wasted management time, subject to detailed calculation per the judgment.
  • Dechert LLP and David Neil Gerrard jointly and severally liable for 100% of unnecessary work damages and 75% of unnecessary costs and wasted management time damages; SFO liable for 25% of unnecessary costs and wasted management time damages.