Baker Botts (UK) LLP v Carbon Holdings Ltd & Anor [2025] EWHC 2225 (Comm) (29 August 2025)

Baker Botts (UK) LLP v Carbon Holdings Ltd & Anor [2025] EWHC 2225 (Comm) (29 August 2025)

Security for costs is granted against EHC because there is credible evidence of its inability to meet liabilities, including a history of defaults, negative working capital, unreliable projections, and lack of evidence of improved financial standing. The Defendants' evidence of financial improvement is insufficient and unsupported. The summary judgment application is not determined in this judgment; the focus is on the security for costs application, which succeeds on the evidence presented.

Citation
[2025] EWHC 2225 (Comm)
Parties
Claimant / Part 20 Defendant: Baker Botts (UK) LLP; First Defendant / Part 20 Claimant: Carbon Holdings Limited; Second Defendant: EHI Limited; Third Party / Part 20 Defendant / Part 20 Claimant: Egypt Hydrocarbon Corporation SAE
Jurisdiction
England and Wales
Judgment Date
29 August 2025
Procedural Posture
Commercial Claim With Part 20 Proceedings / Interlocutory Applications: Security for Costs and Summary Judgment
Outcome
Security for costs application granted against EHC; summary judgment application not determined in this judgment.
Legal Topics
Security for Costs, Summary Judgment, Contractual Interpretation, Collateral Contract, Estoppel, Set Off, Professional Negligence
Commercial Law Civil Procedure Security for Costs Summary Judgment Contractual Interpretation Collateral Contract Estoppel Set Off +1 more

Case Brief

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Parties

Baker Botts (UK) LLP

Claimant / Part 20 Defendant

Carbon Holdings Limited

First Defendant / Part 20 Claimant

EHI Limited

Second Defendant

Egypt Hydrocarbon Corporation SAE

Third Party / Part 20 Defendant / Part 20 Claimant

Procedural Posture

Commercial Claim With Part 20 Proceedings / Interlocutory Applications: Security for Costs and Summary Judgment

Legal Issues

  1. 1 Whether security for costs should be ordered against EHC under CPR 25.27(b)(ii)
  2. 2 Whether summary judgment or strike out should be granted in favour of Baker Botts (UK) LLP on its claim for unpaid fees
  3. 3 Whether there was a collateral contract or estoppel limiting CHL's liability for fees

Ratio Decidendi

Security for costs is granted against EHC because there is credible evidence of its inability to meet liabilities, including a history of defaults, negative working capital, unreliable projections, and lack of evidence of improved financial standing. The Defendants' evidence of financial improvement is insufficient and unsupported. The summary judgment application is not determined in this judgment; the focus is on the security for costs application, which succeeds on the evidence presented.

Court Disposition

Security for costs application granted against EHC; summary judgment application not determined in this judgment.

Orders

  • EHC to provide security for costs in the sum of £2,016,777.45 in favour of Baker Botts (UK) LLP.