BSG Resources Ltd v Vale SA & Ors [2019] EWHC 2456 (Comm) (20 September 2019)

BSG Resources Ltd v Vale SA & Ors [2019] EWHC 2456 (Comm) (20 September 2019)

No risk of dissipation or diminution of assets established; administrators act independently and in creditors' interests; security for award refused. Security for costs granted at US$510,000 as reasonable and proportionate. Enforcement order not set aside or stayed; award retains presumptive validity pending challenge. Amendment to claim form permitted; no prejudice to defendants. Condition to pay outstanding costs order not imposed due to administration and pari passu principle.

Citation
[2019] EWHC 2456 (Comm)
Parties
Claimant: BSG Resources Limited; Defendant: Vale S. A.; Defendant: Filip De Ly; Defendant: David A. R. Williams; Defendant: Michael Hwang
Jurisdiction
England and Wales
Judgment Date
20 September 2019
Procedural Posture
Commercial Court Arbitration Related Applications / Interlocutory Applications Prior to Substantive Hearing of Challenge Application
Outcome
Applications disposed as follows: security for award refused; security for costs granted at US$510,000; set aside/stay of enforcement refused; amendment to claim form granted; condition to pay costs order refused.
Legal Topics
Security for Award, Security for Costs, Stay of Enforcement, Amendment of Claim, Costs Order in Administration
Arbitration Commercial Law Insolvency Security for Award Security for Costs Stay of Enforcement Amendment of Claim Costs Order in Administration

Case Brief

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Parties

BSG Resources Limited

Claimant

Vale S. A.

Defendant

Filip De Ly

Defendant

David A. R. Williams

Defendant

Michael Hwang

Defendant

Procedural Posture

Commercial Court Arbitration Related Applications / Interlocutory Applications Prior to Substantive Hearing of Challenge Application

Legal Issues

  1. 1 Whether security for the award should be ordered under Section 70 Arbitration Act 1996
  2. 2 Quantum of security for costs under Section 70(6) Arbitration Act 1996
  3. 3 Whether enforcement order should be set aside or stayed pending challenge

Ratio Decidendi

No risk of dissipation or diminution of assets established; administrators act independently and in creditors' interests; security for award refused. Security for costs granted at US$510,000 as reasonable and proportionate. Enforcement order not set aside or stayed; award retains presumptive validity pending challenge. Amendment to claim form permitted; no prejudice to defendants. Condition to pay outstanding costs order not imposed due to administration and pari passu principle.

Court Disposition

Applications disposed as follows: security for award refused; security for costs granted at US$510,000; set aside/stay of enforcement refused; amendment to claim form granted; condition to pay costs order refused.

Orders

  • Application for security for award dismissed.
  • Application for security for costs granted in sum of US$510,000.