U&M Mining Zambia Ltd v Konkola Copper Mines Plc

U&M Mining Zambia Ltd v Konkola Copper Mines Plc

KCM's conduct in arbitration and litigation, including reliance on untrue evidence and obstructive behaviour, established a real risk of dissipation of assets. The English court, as seat of arbitration, was appropriate to grant a worldwide freezing order despite assets being in Zambia. Although U&M breached its duty of full and frank disclosure in several material respects, the interests of justice required continuation of the freezing order, with costs consequences to mark the importance of disclosure.

Parties
Claimant: U&M Mining Zambia Ltd; Defendant: Konkola Copper Mines PLC
Jurisdiction
England and Wales
Judgment Date
10 October 2014
Procedural Posture
Commercial Arbitration Enforcement / Inter Partes Application to Continue Worldwide Freezing Order
Outcome
Worldwide freezing order continued
Legal Topics
Freezing Orders, Risk of Dissipation, Full and Frank Disclosure, Jurisdiction, Enforcement of Arbitral Awards
Arbitration Commercial Law Injunctions Freezing Orders Risk of Dissipation Full and Frank Disclosure Jurisdiction Enforcement of Arbitral Awards

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Parties

U&M Mining Zambia Ltd

Claimant

Konkola Copper Mines PLC

Defendant

Procedural Posture

Commercial Arbitration Enforcement / Inter Partes Application to Continue Worldwide Freezing Order

Legal Issues

  1. 1 Whether there is a real risk of dissipation of assets by KCM
  2. 2 Whether it is just and convenient to continue the worldwide freezing order
  3. 3 Whether U&M complied with its duty of full and frank disclosure

Ratio Decidendi

KCM's conduct in arbitration and litigation, including reliance on untrue evidence and obstructive behaviour, established a real risk of dissipation of assets. The English court, as seat of arbitration, was appropriate to grant a worldwide freezing order despite assets being in Zambia. Although U&M breached its duty of full and frank disclosure in several material respects, the interests of justice required continuation of the freezing order, with costs consequences to mark the importance of disclosure.

Court Disposition

Worldwide freezing order continued

Orders

  • U&M to bear its own costs of the ex parte and inter partes application
  • U&M to pay one-third of KCM’s costs of resisting continuance of the WFO on the indemnity basis