Taurus Petroleum Ltd v State Oil Company of the Ministry of Oil, Republic of Iraq [2015] EWCA Civ 835 (28 July 2015)

Taurus Petroleum Ltd v State Oil Company of the Ministry of Oil, Republic of Iraq [2015] EWCA Civ 835 (28 July 2015)

The debts under the letters of credit are situated in New York, not England, and English courts have no jurisdiction to make third party debt orders in respect of them. Receivership orders in respect of these debts would exceed the proper limits of jurisdiction. SOMO is not entitled to state immunity, but the debts are not the property of CBI for the purposes of immunity under s.14(4) of the State Immunity Act 1978. The appeal is dismissed.

Citation
[2015] EWCA Civ 835
Parties
Claimant/appellant: Taurus Petroleum Limited; Defendant/respondent: State Oil Marketing Company of Iraq (SOMO); Interested Party: Central Bank of Iraq (CBI)
Jurisdiction
England and Wales
Judgment Date
28 July 2015
Procedural Posture
Appeal / Court of Appeal Judgment
Outcome
Appeal dismissed
Legal Topics
Letters of Credit, Third Party Debt Orders, Receivership Orders, State Immunity, Situs of Debts, Execution of Judgments
Commercial Law Conflict of Laws Banking Law International Law Letters of Credit Third Party Debt Orders Receivership Orders State Immunity +2 more

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Parties

Taurus Petroleum Limited

Claimant/appellant

State Oil Marketing Company of Iraq (SOMO)

Defendant/respondent

Central Bank of Iraq (CBI)

Interested Party

Procedural Posture

Appeal / Court of Appeal Judgment

Legal Issues

  1. 1 Whether English courts have jurisdiction to make third party debt orders in respect of debts situated abroad under letters of credit
  2. 2 Whether receivership orders can be made in respect of foreign debts
  3. 3 Whether SOMO is entitled to state immunity under the State Immunity Act 1978

Ratio Decidendi

The debts under the letters of credit are situated in New York, not England, and English courts have no jurisdiction to make third party debt orders in respect of them. Receivership orders in respect of these debts would exceed the proper limits of jurisdiction. SOMO is not entitled to state immunity, but the debts are not the property of CBI for the purposes of immunity under s.14(4) of the State Immunity Act 1978. The appeal is dismissed.

Court Disposition

Appeal dismissed

Orders

  • Third party debt orders discharged
  • Receivership order set aside