O v C

O v C

There is no real risk of prosecution for breach of US sanctions if proceeds are paid into court pursuant to a court order; the importance of supporting the arbitration and preserving proceeds outweighs any low risk, so payment into court is ordered.

Parties
Applicant: O; Respondent: C
Jurisdiction
England and Wales
Judgment Date
11 August 2024
Procedural Posture
Arbitration Claim / Judgment on Application for Sale of Cargo and Payment of Proceeds
Outcome
Application granted
Legal Topics
Section 44 Arbitration Act 1996, US Sanctions, Sale of Cargo, Payment of Proceeds, Risk of Breach of Foreign Law
Arbitration Commercial Law Sanctions Section 44 Arbitration Act 1996 US Sanctions Sale of Cargo Payment of Proceeds Risk of Breach of Foreign Law

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Parties

O

Applicant

C

Respondent

Procedural Posture

Arbitration Claim / Judgment on Application for Sale of Cargo and Payment of Proceeds

Legal Issues

  1. 1 Whether the court should order sale of the cargo and payment of proceeds into court or a blocked US account
  2. 2 Whether payment into court risks breach of US sanctions
  3. 3 Whether there is a real risk of prosecution for breach of US sanctions

Ratio Decidendi

There is no real risk of prosecution for breach of US sanctions if proceeds are paid into court pursuant to a court order; the importance of supporting the arbitration and preserving proceeds outweighs any low risk, so payment into court is ordered.

Court Disposition

Application granted

Orders

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