Masri v Consolidated Contractors International UK Ltd & Anor

Masri v Consolidated Contractors International UK Ltd & Anor

Both CCIC and CC (Oil & Gas) are liable as judgment debtors under the 1992 Agreement; the running account could be terminated by either party on reasonable notice; interest is to be calculated at the syndicated loan rate (US$ LIBOR + 1.5%) compounded monthly on both sides of the account, with no differential; the claimant is not entitled to be notionally credited with a share of the syndicated loan in the running account.

Parties
Claimant: Munib Masri; Defendants: Consolidated Contractors International UK Ltd & Another; Defendants: Said Tawfic Khoury & Others
Jurisdiction
England and Wales
Judgment Date
14 March 2007
Procedural Posture
Commercial / Judgment on Quantum Following Liability Judgment
Outcome
Judgment for the claimant on quantum principles; directions for taking the account to be settled.
Legal Topics
Running Account Arrangements, Interest Calculation, Liability of Contracting Parties, Syndicated Loan Benefit, Limitation of Actions
Contract Law Commercial Law Running Account Arrangements Interest Calculation Liability of Contracting Parties Syndicated Loan Benefit Limitation of Actions

Case Brief

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Parties

Munib Masri

Claimant

Consolidated Contractors International UK Ltd & Another

Defendants

Said Tawfic Khoury & Others

Defendants

Procedural Posture

Commercial / Judgment on Quantum Following Liability Judgment

Legal Issues

  1. 1 Whether CCIC is liable as a judgment debtor under the 1992 Agreement
  2. 2 Duration and termination of the running account arrangement
  3. 3 Method for calculating interest (simple or compound) on the running account

Ratio Decidendi

Both CCIC and CC (Oil & Gas) are liable as judgment debtors under the 1992 Agreement; the running account could be terminated by either party on reasonable notice; interest is to be calculated at the syndicated loan rate (US$ LIBOR + 1.5%) compounded monthly on both sides of the account, with no differential; the claimant is not entitled to be notionally credited with a share of the syndicated loan in the running account.

Court Disposition

Judgment for the claimant on quantum principles; directions for taking the account to be settled.

Orders

  • Interest on the running account to be calculated at US$ LIBOR + 1.5%, compounded monthly, on both sides of the account.
  • No notional credit to claimant for a share of the syndicated loan in the running account.