Braspetro Oil Services Company & Anor v FPSO Construction Inc & Anor [2005] EWHC 1316 (Comm) (24 June 2005)

Braspetro Oil Services Company & Anor v FPSO Construction Inc & Anor [2005] EWHC 1316 (Comm) (24 June 2005)

The entitlement of claimants to recover sums paid to third party suppliers from defendants depends on the construction of the Side Letter Agreements and the contractual structure, including whether assignment or step-in rights were properly exercised. The Side Letters do not permit reopening of prior settlements. Defendants' cross-claims depend on the interpretation of the Supervision Agreements and the facts underlying the claims, which are not determined at this preliminary stage.

Citation
[2005] EWHC 1316 (Comm)
Parties
Claimant: Braspetro Oil Services Company; Claimant: Petroleo Brasileiro S. A. Petrobras; Defendant: FPSO Construction Inc.; Defendant: FPSO Engeneering Inc.; Defendant: FSO Construction Inc.; Defendant: FSO Engeneering Inc.
Jurisdiction
England and Wales
Judgment Date
24 June 2005
Procedural Posture
Commercial Court Trial of Preliminary Issues / Judgment on Preliminary Issues
Outcome
Preliminary issues determined; entitlement to recover under Side Letter Agreements and cross-claims not finally resolved at this stage.
Legal Topics
Contractual Interpretation, Third Party Rights, Assignment and Novation, Construction Project Disputes, Claims and Cross Claims, Supervision and Step in Rights
Commercial Law Contract Law Construction Law Contractual Interpretation Third Party Rights Assignment and Novation Construction Project Disputes Claims and Cross Claims +1 more

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Parties

Braspetro Oil Services Company

Claimant

Petroleo Brasileiro S. A. Petrobras

Claimant

FPSO Construction Inc.

Defendant

FPSO Engeneering Inc.

Defendant

FSO Construction Inc.

Defendant

FSO Engeneering Inc.

Defendant

Procedural Posture

Commercial Court Trial of Preliminary Issues / Judgment on Preliminary Issues

Legal Issues

  1. 1 Whether Side Letter Agreements entitle claimants to recover sums paid to third party suppliers from defendants
  2. 2 Whether defendants have cross-claims under Supervision Agreements or on a quantum meruit basis
  3. 3 Interpretation of contractual structures and assignment/step-in rights

Ratio Decidendi

The entitlement of claimants to recover sums paid to third party suppliers from defendants depends on the construction of the Side Letter Agreements and the contractual structure, including whether assignment or step-in rights were properly exercised. The Side Letters do not permit reopening of prior settlements. Defendants' cross-claims depend on the interpretation of the Supervision Agreements and the facts underlying the claims, which are not determined at this preliminary stage.

Court Disposition

Preliminary issues determined; entitlement to recover under Side Letter Agreements and cross-claims not finally resolved at this stage.