Masri & Anor v Consolidated Contractors International Co Sal & Ors

Masri & Anor v Consolidated Contractors International Co Sal & Ors

The English court has jurisdiction to continue the receivership and asset preservation orders against the Judgment Debtors and to include the Judicial Administrators in the penal notice as persons acting as the decision-making organs of the companies. The orders are justified by the deliberate strategy of the Judgment Debtors and their shareholders to frustrate enforcement, the sufficient connection to England, and the minimal risk of double jeopardy or sanctions in Lebanon. The Judicial Administrators are not entitled to state immunity, and the orders do not trespass on Lebanese sovereignty or comity.

Parties
Judgment Creditor / Claimant: Mr Munib Masri; Receiver / Claimant: Mr Lee Manning (Receiver); Judgment Debtor / Defendant: Consolidated Contractors International Co SAL; Judgment Debtor / Defendant: Consolidated Contractors (Oil and Gas) Co SAL; Third Parties / Applicants: The Judicial Administrators (Edgard Elias Joujou, Georges Zakhour, Jihad Al-Hajjar); Third Parties / Respondents: The Nexen Companies (Canadian Nexen Petroleum Yemen, Nexen Petroleum Operations Yemen Limited, Nexen Inc)
Jurisdiction
England and Wales
Judgment Date
03 March 2011
Procedural Posture
Commercial Enforcement / Receivership / Injunction / Ruling on Application to Discharge/continue Receivership and Asset Preservation Orders
Outcome
Application to discharge receivership and asset preservation orders against Judicial Administrators refused; orders continued in revised form.
Legal Topics
Receivership, Asset Preservation, Jurisdiction, Comity, State Immunity, Contempt of Court, Enforcement of Judgments
Civil Procedure Commercial Law Conflict of Laws Insolvency Receivership Asset Preservation Jurisdiction Comity +3 more

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Parties

Mr Munib Masri

Judgment Creditor / Claimant

Mr Lee Manning (Receiver)

Receiver / Claimant

Consolidated Contractors International Co SAL

Judgment Debtor / Defendant

Consolidated Contractors (Oil and Gas) Co SAL

Judgment Debtor / Defendant

The Judicial Administrators (Edgard Elias Joujou, Georges Zakhour, Jihad Al-Hajjar)

Third Parties / Applicants

The Nexen Companies (Canadian Nexen Petroleum Yemen, Nexen Petroleum Operations Yemen Limited, Nexen Inc)

Third Parties / Respondents

Procedural Posture

Commercial Enforcement / Receivership / Injunction / Ruling on Application to Discharge/continue Receivership and Asset Preservation Orders

Legal Issues

  1. 1 Whether the English court has jurisdiction to make and continue a receivership order and asset preservation order affecting foreign assets and foreign officers (Judicial Administrators) of a foreign company
  2. 2 Whether the inclusion of foreign Judicial Administrators in a penal notice is permissible and enforceable
  3. 3 Whether the orders should be discharged on grounds of comity, state immunity, double jeopardy, or non-disclosure

Ratio Decidendi

The English court has jurisdiction to continue the receivership and asset preservation orders against the Judgment Debtors and to include the Judicial Administrators in the penal notice as persons acting as the decision-making organs of the companies. The orders are justified by the deliberate strategy of the Judgment Debtors and their shareholders to frustrate enforcement, the sufficient connection to England, and the minimal risk of double jeopardy or sanctions in Lebanon. The Judicial Administrators are not entitled to state immunity, and the orders do not trespass on Lebanese sovereignty or comity.

Court Disposition

Application to discharge receivership and asset preservation orders against Judicial Administrators refused; orders continued in revised form.

Orders

  • Third Receivership Order and Asset Preservation Order continued against Judgment Debtors and Judicial Administrators, with amendments to penal notice and affected persons provisions.
  • Judicial Administrators permitted to seek directions from Lebanese courts without breaching the order.