ABFA Commodities Trading Ltd v Petraco Oil Company SA [2024] EWHC 147 (Comm) (30 January 2024)

ABFA Commodities Trading Ltd v Petraco Oil Company SA [2024] EWHC 147 (Comm) (30 January 2024)

The court found that Petraco was not liable to VTB Commodities for abuse of rights under Russian law as the requisite knowledge or recklessness was not established. Petraco was entitled to damages under the undertaking in damages, as it would have acquired title to the disputed parcel but for the injunction. The quantum of damages was determined based on the loss suffered by Petraco as a result of the injunction.

Citation
[2024] EWHC 147 (Comm)
Parties
Claimant: ABFA Commodities Trading Limited (formerly VTB Commodities Trading Limited, formerly VTB Commodities Trading DAC); Intervener: Petraco Oil Company SA
Jurisdiction
England and Wales
Judgment Date
30 January 2024
Procedural Posture
Commercial Court Claim / Final Judgment After Trial
Outcome
Petraco's claim for damages under the undertaking in damages is allowed; VTB Commodities' claim for abuse of rights is dismissed.
Legal Topics
Injunctions, Undertaking in Damages, Abuse of Rights (russian Law), Title to Goods, Damages Assessment, Interim Relief, Sanctions Impact on Proceedings
Commercial Law Contract Law Tort Law Private International Law Injunctions Undertaking in Damages Abuse of Rights (russian Law) Title to Goods +3 more

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Parties

ABFA Commodities Trading Limited (formerly VTB Commodities Trading Limited, formerly VTB Commodities Trading DAC)

Claimant

Petraco Oil Company SA

Intervener

Procedural Posture

Commercial Court Claim / Final Judgment After Trial

Legal Issues

  1. 1 Is Petraco liable to VTB Commodities for the tort of abuse of rights under Russian law for acquiring certain cargoes?
  2. 2 Is Petraco entitled to damages under the undertaking in damages given by VTB Commodities for the injunction?
  3. 3 Did MachinoImport acquire title to the disputed parcel from Antipinsky?

Ratio Decidendi

The court found that Petraco was not liable to VTB Commodities for abuse of rights under Russian law as the requisite knowledge or recklessness was not established. Petraco was entitled to damages under the undertaking in damages, as it would have acquired title to the disputed parcel but for the injunction. The quantum of damages was determined based on the loss suffered by Petraco as a result of the injunction.

Court Disposition

Petraco's claim for damages under the undertaking in damages is allowed; VTB Commodities' claim for abuse of rights is dismissed.

Orders

  • Petraco awarded damages under the undertaking in damages (quantum to be determined as per judgment).
  • VTB Commodities' claim for damages for abuse of rights is dismissed.