Baker Botts (UK) LLP v Carbon Holdings Limited & Anor

Baker Botts (UK) LLP v Carbon Holdings Limited & Anor

Security for costs is granted against EHC because there is reason to believe it will be unable to pay costs if ordered, based on its financial history, defaults, and lack of reliable evidence of improvement. Summary judgment is granted in part for invoices relating to work done for CHL and EHI, as even on the Defendants' case, liability for those sums is not disputed, subject to assessment of reasonableness. The remaining claims and defences, including collateral contract, estoppel, and set-off, raise factual disputes unsuitable for summary determination and must proceed to trial.

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 Cross Claims / Ruling on Applications for Summary Judgment, Strike Out, and Security for Costs
Outcome
Summary judgment granted in part for claimant; security for costs ordered against EHC; permission to amend Defence; balance of claims to proceed to trial.
Legal Topics
Security for Costs, Summary Judgment, Strike Out, Solicitor Client Costs, Collateral Contract, Estoppel, Set Off, Professional Negligence
Commercial Law Civil Procedure Contract Law Security for Costs Summary Judgment Strike Out Solicitor Client Costs Collateral Contract +3 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 Cross Claims / Ruling on Applications for Summary Judgment, Strike Out, and Security for Costs

Legal Issues

  1. 1 Whether summary judgment or strike out should be granted on the claimant's unpaid fees claim
  2. 2 Whether security for costs should be ordered against EHC as Part 20 Claimant
  3. 3 Whether a collateral contract or estoppel precludes the claimant from recovering fees from CHL/EHI

Ratio Decidendi

Security for costs is granted against EHC because there is reason to believe it will be unable to pay costs if ordered, based on its financial history, defaults, and lack of reliable evidence of improvement. Summary judgment is granted in part for invoices relating to work done for CHL and EHI, as even on the Defendants' case, liability for those sums is not disputed, subject to assessment of reasonableness. The remaining claims and defences, including collateral contract, estoppel, and set-off, raise factual disputes unsuitable for summary determination and must proceed to trial.

Court Disposition

Summary judgment granted in part for claimant; security for costs ordered against EHC; permission to amend Defence; balance of claims to proceed to trial.

Orders

  • Judgment for Baker Botts (UK) LLP for US$1,026,053.67 (subject to assessment of reasonableness by Costs Judge) for work done for CHL and EHI.
  • Security for costs against Egypt Hydrocarbon Corporation SAE in the sum of £1,500,000, with terms of provision to be determined.