EURASIAN NATURAL RESOURCES CORPORATION LIMITED v DECHERT LLP

EURASIAN NATURAL RESOURCES CORPORATION LIMITED v DECHERT LLP

Dechert LLP and Neil Gerrard committed multiple deliberate and reckless breaches of duty to ENRC, including leaking confidential information, expanding investigations unnecessarily, giving wrong legal advice, and failing to protect privilege; the SFO, through certain officers, induced breaches of contract by knowingly or recklessly receiving unauthorised information from Gerrard, but did not commit misfeasance in public office as knowledge of probable loss was not established; limitation of liability clauses did not bar claims for reckless breaches; limitation periods were postponed by deliberate concealment; declaratory relief against the SFO was refused as a matter of law and discretion.

Parties
Claimant: Eurasian Natural Resources Corporation Limited; Defendant: Dechert LLP; Defendant: David Neil Gerrard; Defendant/third Party: Director of the Serious Fraud Office
Jurisdiction
England and Wales
Judgment Date
16 May 2022
Procedural Posture
Civil (commercial Court, England and Wales) / Judgment After Trial of Liability (phase 1 Issues)
Outcome
Claims against Dechert LLP and Neil Gerrard for breach of duty succeed; claims against SFO for inducement to breach of contract succeed (subject to causation and loss); claims for misfeasance in public office and further claims against SFO fail; declaratory relief refused; limitation and limitation of liability...
Legal Topics
Solicitor's Duties, Breach of Fiduciary Duty, Inducement to Breach of Contract, Misfeasance in Public Office, Legal Professional Privilege, Limitation of Liability, Causation and Loss, Self Reporting to Authorities, Corporate Criminal Liability, Civil Recovery Orders
Professional Negligence Tort Law Contract Law Public Law Criminal Law (bribery/corruption) Solicitor's Duties Breach of Fiduciary Duty Inducement to Breach of Contract +7 more

Case Brief

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Parties

Eurasian Natural Resources Corporation Limited

Claimant

Dechert LLP

Defendant

David Neil Gerrard

Defendant

Director of the Serious Fraud Office

Defendant/third Party

Procedural Posture

Civil (commercial Court, England and Wales) / Judgment After Trial of Liability (phase 1 Issues)

Legal Issues

  1. 1 Whether Dechert LLP and Neil Gerrard breached contractual, tortious, and fiduciary duties to ENRC
  2. 2 Whether the SFO, through its officers, induced breaches of contract/fiduciary duty or committed misfeasance in public office
  3. 3 Whether Dechert negligently or recklessly expanded the scope of investigations and failed to protect ENRC's privilege

Ratio Decidendi

Dechert LLP and Neil Gerrard committed multiple deliberate and reckless breaches of duty to ENRC, including leaking confidential information, expanding investigations unnecessarily, giving wrong legal advice, and failing to protect privilege; the SFO, through certain officers, induced breaches of contract by knowingly or recklessly receiving unauthorised information from Gerrard, but did not commit misfeasance in public office as knowledge of probable loss was not established; limitation of liability clauses did not bar claims for reckless breaches; limitation periods were postponed by deliberate concealment; declaratory relief against the SFO was refused as a matter of law and discretion.

Court Disposition

Claims against Dechert LLP and Neil Gerrard for breach of duty succeed; claims against SFO for inducement to breach of contract succeed (subject to causation and loss); claims for misfeasance in public office and further claims against SFO fail; declaratory relief refused; limitation and limitation of liability...

Orders

  • Judgment for ENRC against Dechert LLP and Neil Gerrard on liability for breaches of duty (contract, tort, fiduciary)
  • Judgment for ENRC against SFO on liability for inducement to breach of contract (subject to causation and loss)