Case details

Taurus Petroleum Limited (Appellant) v State Oil Marketing Company of the Ministry of Oil, Republic of Iraq (Respondent)

Case ID: UKSC 2015/0199

Case summary

Issue
  1. The identity of the beneficiary under letters of credit;
  2. The situs of debts under letters of credit;
  3. Whether there is a free-standing principle of honest dealing beyond the rule that a judgment creditor cannot execute against property that does not belong to the judgment debtor;
  4. The correct basis on which a court should exercise its discretion to make receivership orders;
  5. The circumstances in which sections 13(2)(b), 14(2) and 14(4) of the State Immunity Act 1978 allow immunity from execution.
Facts

The appellant, Taurus Petroleum Limited ("Taurus"), contracted with the respondent, State Oil Marketing Company of the Ministry of Oil, Republic of Iraq ("SOMO"). Disputes arose and in 2013 an arbitral award was made against SOMO in favour of Taurus. Sums of money were owed to SOMO under two letters of credit issued by the London branch of Crédit Agricole, both of which provided that payment was to be made to an account held by the Central Bank of Iraq in New York. Taurus was granted an order that the arbitral award could be enforced as a judgment in England. A third party debt order and associated receivership order were made concerning the letters of credit. SOMO challenged the third party debt and receivership orders. Field J set aside both orders and the Court of Appeal upheld the result, albeit with different reasoning. Taurus appealed to the Supreme Court.

Judgment appealed

[2015] EWCA Civ 835

Parties

Appellant

Taurus Petroleum Limited

Respondent

State Oil Marketing Company of the Ministry of Oil, Republic of Iraq

Appeal

Justices

Lord Neuberger, Lord Mance, Lord Clarke, Lord Sumption, Lord Hodge

Hearing start date

21 Mar 2017

Hearing finish date

22 Mar 2017

Watch hearing
21 Mar 2017 Morning session Afternoon session
22 Mar 2017 Morning session Afternoon session