SARPD Oil International Ltd v Addax Energy SA & Anor

SARPD Oil International Ltd v Addax Energy SA & Anor

Security for costs should be ordered against a foreign company that deliberately refuses to disclose its financial position, and the amount should include both Addax’s own costs and costs for which Addax will be liable to Glencore, assessed by reference to the approved costs budgets.

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 / Court of Appeal Judgment
Outcome
Appeal allowed; security for costs ordered.
Legal Topics
Security for Costs, Costs Budgeting, International Purchase Contracts
Civil Procedure Commercial Law Security for Costs Costs Budgeting International Purchase Contracts

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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 / Court of Appeal Judgment

Legal Issues

  1. 1 Whether security for costs should be ordered against a foreign company with no publicly available accounts and deliberate reticence about its financial position
  2. 2 Whether costs incurred in Part 20 proceedings, including costs for which Addax will be liable to Glencore, are Addax's costs for purposes of security for costs
  3. 3 Whether the approved costs budgets should be used as the reference point for assessing the amount of security for costs

Ratio Decidendi

Security for costs should be ordered against a foreign company that deliberately refuses to disclose its financial position, and the amount should include both Addax’s own costs and costs for which Addax will be liable to Glencore, assessed by reference to the approved costs budgets.

Court Disposition

Appeal allowed; security for costs ordered.

Orders

  • Claimant to provide security for costs in the sum of £868,254.42.
  • Security to cover Addax’s own costs and costs for which Addax will be liable to Glencore, as per approved costs budgets.