OIL STATES INDUSTRIES (UK) LTD AGAINST "S" LTD AND OTHERS [2022] ScotCS CSOH_52 (04 August 2022)

OIL STATES INDUSTRIES (UK) LTD AGAINST "S" LTD AND OTHERS [2022] ScotCS CSOH_52 (04 August 2022)

Bribery is a distinct cause of action in Scots law, not requiring proof of fraud or inducement, and is established where a fiduciary receives a secret benefit from a third party without the principal's consent. The evidence, including contemporaneous emails, witness statements, and corroborated hearsay, establishes on the balance of probabilities that Mr Galbraith received bribes from the second defender, for which the first defender is vicariously liable.

Citation
[2022] ScotCS CSOH_52
Parties
Pursuer: Oil States Industries (UK) Limited; First Defender: "S" Limited; Second Defender: Lagan Building Contractors Limited (in administration); Second Defender: John Hansen and Stuart Irwin (joint administrators of Lagan Building Contractors Limited)
Jurisdiction
Scotland
Judgment Date
04 August 2022
Procedural Posture
Civil (commercial) / Preliminary Proof (trial on Bribery Issue Before Full Proof)
Outcome
Bribery by Mr Galbraith established; first defender vicariously liable; preliminary proof resolved in pursuer's favour on bribery issue.
Legal Topics
Bribery, Fiduciary Duty, Vicarious Liability, Secret Commissions, Procurement Fraud
Commercial Law Contract Law Agency Law Tort/delict Bribery Fiduciary Duty Vicarious Liability Secret Commissions +1 more

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Parties

Oil States Industries (UK) Limited

Pursuer

"S" Limited

First Defender

Lagan Building Contractors Limited (in administration)

Second Defender

John Hansen and Stuart Irwin (joint administrators of Lagan Building Contractors Limited)

Second Defender

Procedural Posture

Civil (commercial) / Preliminary Proof (trial on Bribery Issue Before Full Proof)

Legal Issues

  1. 1 Whether Mr Galbraith received a bribe in the procurement process for the Heartlands project
  2. 2 Whether the first defender is vicariously liable for any bribes received by Mr Galbraith
  3. 3 Whether the benefits received amounted in law to bribery under Scots law

Ratio Decidendi

Bribery is a distinct cause of action in Scots law, not requiring proof of fraud or inducement, and is established where a fiduciary receives a secret benefit from a third party without the principal's consent. The evidence, including contemporaneous emails, witness statements, and corroborated hearsay, establishes on the balance of probabilities that Mr Galbraith received bribes from the second defender, for which the first defender is vicariously liable.

Court Disposition

Bribery by Mr Galbraith established; first defender vicariously liable; preliminary proof resolved in pursuer's favour on bribery issue.

Orders

  • Proceed to full proof on remaining issues and quantum of damages.
  • First defender found liable for consequences of bribery.