SARPD Oil International Ltd v Addax Energy SA & Anor [2016] EWCA Civ 120 (03 March 2016)

SARPD Oil International Ltd v Addax Energy SA & Anor [2016] EWCA Civ 120 (03 March 2016)

Where a claimant company refuses to provide financial information and has no publicly available accounts or discernible assets, the court is entitled to infer there is reason to believe it will be unable to pay the defendant's costs if ordered, justifying an order for security for costs. Security may include both the defendant's own costs and those for which it will be liable to a third party, and the approved costs budget is the correct reference for the amount.

Citation
[2016] EWCA Civ 120
Parties
Claimant/respondent: SARPD Oil International Limited; Defendant/appellant: Addax Energy SA; Third Party: Glencore Energy UK Ltd
Jurisdiction
England and Wales
Judgment Date
03 March 2016
Procedural Posture
Civil Appeal / Appeal From High Court (commercial Court) to Court of Appeal
Outcome
Appeal allowed
Legal Topics
Security for Costs, Costs Budgeting, International Sale of Goods, Civil Procedure Rules (cpr), Third Party Proceedings
Civil Procedure Commercial Law Security for Costs Costs Budgeting International Sale of Goods Civil Procedure Rules (cpr) Third Party Proceedings

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Parties

SARPD Oil International Limited

Claimant/respondent

Addax Energy SA

Defendant/appellant

Glencore Energy UK Ltd

Third Party

Procedural Posture

Civil Appeal / Appeal From High Court (commercial Court) to Court of Appeal

Legal Issues

  1. 1 Whether security for costs should be ordered against a foreign company that refuses to disclose financial information under CPR 25.13(2)(c)
  2. 2 Whether security for costs should include costs for which the defendant will be liable to a third party (Glencore)
  3. 3 Whether the approved costs budget should be the reference point for the amount of security

Ratio Decidendi

Where a claimant company refuses to provide financial information and has no publicly available accounts or discernible assets, the court is entitled to infer there is reason to believe it will be unable to pay the defendant's costs if ordered, justifying an order for security for costs. Security may include both the defendant's own costs and those for which it will be liable to a third party, and the approved costs budget is the correct reference for the amount.

Court Disposition

Appeal allowed

Orders

  • Order for security for costs against Sarpd Oil International Limited in the sum of £868,254.42
  • Security to cover Addax's own costs and costs for which Addax will be liable to Glencore