Glencore Energy UK Ltd v Springfield Energy Ltd [2018] EWHC 1780 (Comm) (17 July 2018)

Glencore Energy UK Ltd v Springfield Energy Ltd [2018] EWHC 1780 (Comm) (17 July 2018)

Glencore did not carry out any activity in Ghana requiring a licence under the GNPA; storage was conducted by TFC, importation was by Springfield, and Glencore did not sell or transport petroleum products in Ghana. Even if a licence were required, breach of the GNPA would not constitute a criminal offence. Therefore, the Sale Contracts and Settlement Agreement are not illegal or unenforceable, and Glencore is entitled to judgment for the outstanding debt and interest.

Citation
[2018] EWHC 1780 (Comm)
Parties
Claimant: Glencore Energy UK Limited; Defendant: Springfield Energy Limited
Jurisdiction
England and Wales
Judgment Date
17 July 2018
Procedural Posture
Commercial Claim (breach of Contract and Counterclaim) / High Court Judgment After Abbreviated Trial
Outcome
Claim allowed in full; counterclaim dismissed.
Legal Topics
Enforceability of Settlement Agreements, Illegality Under Foreign Law, Restitution, Interpretation of Foreign Statutes, Interest on Judgment Debts
Commercial Law Contract Law Conflict of Laws Enforceability of Settlement Agreements Illegality Under Foreign Law Restitution Interpretation of Foreign Statutes Interest on Judgment Debts

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Parties

Glencore Energy UK Limited

Claimant

Springfield Energy Limited

Defendant

Procedural Posture

Commercial Claim (breach of Contract and Counterclaim) / High Court Judgment After Abbreviated Trial

Legal Issues

  1. 1 Whether the Sale Contracts as amended were unlawful under Ghanaian law due to lack of licence under the GNPA
  2. 2 Whether the Settlement Agreement is unenforceable due to alleged illegality of underlying contracts
  3. 3 Whether Glencore engaged in activities requiring a licence under the GNPA

Ratio Decidendi

Glencore did not carry out any activity in Ghana requiring a licence under the GNPA; storage was conducted by TFC, importation was by Springfield, and Glencore did not sell or transport petroleum products in Ghana. Even if a licence were required, breach of the GNPA would not constitute a criminal offence. Therefore, the Sale Contracts and Settlement Agreement are not illegal or unenforceable, and Glencore is entitled to judgment for the outstanding debt and interest.

Court Disposition

Claim allowed in full; counterclaim dismissed.

Orders

  • Judgment for Glencore in the sum of US$1,234,205.91
  • Interest at 8% per annum on the outstanding balance as per the Settlement Agreement, calculated up to 9 July 2018 as US$241,019, with updated figure to be provided at hand down