Gater Assets Ltd v Nak Naftogaz Ukrainiy

Gater Assets Ltd v Nak Naftogaz Ukrainiy

The court has jurisdiction under CPR 25.12 to order security for costs against a Convention award creditor seeking enforcement, as the procedural rules apply equally to domestic and Convention awards and do not breach Article III of the New York Convention. Naftogaz has shown a prima facie case of fraud, justifying the order for security for costs.

Parties
Applicant/defendant: Gater Assets Limited; Respondent/claimant: Nak Naftogaz Ukrainiy (National Joint Stock Company Naftogaz of Ukraine)
Jurisdiction
England and Wales
Judgment Date
22 March 2007
Procedural Posture
Commercial Arbitration Enforcement / Application for Security for Costs Pending Set Aside of Enforcement Order
Outcome
Application for security for costs granted.
Legal Topics
Security for Costs, Enforcement of Foreign Arbitral Awards, New York Convention, Fraud in Arbitral Proceedings
Arbitration Commercial Law Civil Procedure Security for Costs Enforcement of Foreign Arbitral Awards New York Convention Fraud in Arbitral Proceedings

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Parties

Gater Assets Limited

Applicant/defendant

Nak Naftogaz Ukrainiy (National Joint Stock Company Naftogaz of Ukraine)

Respondent/claimant

Procedural Posture

Commercial Arbitration Enforcement / Application for Security for Costs Pending Set Aside of Enforcement Order

Legal Issues

  1. 1 Whether the court has jurisdiction to order security for costs against a Convention award creditor
  2. 2 Whether ordering security for costs breaches Article III of the New York Convention
  3. 3 Whether CPR 25.12 applies to enforcement of Convention awards

Ratio Decidendi

The court has jurisdiction under CPR 25.12 to order security for costs against a Convention award creditor seeking enforcement, as the procedural rules apply equally to domestic and Convention awards and do not breach Article III of the New York Convention. Naftogaz has shown a prima facie case of fraud, justifying the order for security for costs.

Court Disposition

Application for security for costs granted.

Orders

  • Gater Assets Limited to provide security for Naftogaz's costs in the amount of £250,000.
  • Court to hear submissions on time and manner of compliance with the order.