O v C [2024] EWHC 2838 (Comm) (08 November 2024)

O v C [2024] EWHC 2838 (Comm) (08 November 2024)

There is no real prospect of prosecution for breach of US sanctions if the proceeds are paid into court, given the Owners' efforts to comply with sanctions and the context of a court order. The importance of supporting the arbitration and preserving the proceeds in court outweighs the very low risk of prosecution. The court therefore orders the sale of the cargo and payment of proceeds into court.

Citation
[2024] EWHC 2838 (Comm)
Parties
Applicant: O; Respondent: C
Jurisdiction
England and Wales
Judgment Date
08 November 2024
Procedural Posture
Arbitration Claim Under Section 44 Arbitration Act 1996 / Application for Interim Relief (order for Sale of Cargo and Payment of Proceeds)
Outcome
Application granted in principle.
Legal Topics
Interim Relief in Arbitration, Enforcement of Foreign Sanctions, Sale of Goods, Payment of Proceeds Into Court, Risk of Breach of Foreign Law
Arbitration Commercial Law Sanctions Interim Relief in Arbitration Enforcement of Foreign Sanctions Sale of Goods Payment of Proceeds Into Court Risk of Breach of Foreign Law

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 2 Authorities cited 10 Party arguments 2 Amounts and remedies 1
Sign in to unlock

Parties

O

Applicant

C

Respondent

Procedural Posture

Arbitration Claim Under Section 44 Arbitration Act 1996 / Application for Interim Relief (order for Sale of Cargo and Payment of Proceeds)

Legal Issues

  1. 1 Whether the court should order the sale of the cargo under section 44 Arbitration Act 1996
  2. 2 Whether the proceeds of sale should be paid into court or into a blocked account at a US financial institution in light of US sanctions

Ratio Decidendi

There is no real prospect of prosecution for breach of US sanctions if the proceeds are paid into court, given the Owners' efforts to comply with sanctions and the context of a court order. The importance of supporting the arbitration and preserving the proceeds in court outweighs the very low risk of prosecution. The court therefore orders the sale of the cargo and payment of proceeds into court.

Court Disposition

Application granted in principle.

Orders

  • The cargo may be sold.
  • The proceeds of any sale shall be paid into court.