Eurasian Natural Resources Corporation Ltd v Dechert LLP

INTRODUCTION

7

THE PHASE 1 JUDGMENT

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The Claims: Dechert and Mr Gerrard

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The Claims: the SFO

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Findings in the Judgment: Dechert and Mr Gerrard

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Findings in the Judgment: the SFO

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THE PHASE 1A TRIAL

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Introduction

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2017 Claim Issues

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2019 Claim Issues

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THE PARTIES' POSITIONS IN OUTLINE

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Further Statements of Case

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Breaches of Duty Relied Upon by ENRC for the Purposes of its Damages Claim

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Enrc's Claims for Losses Arising from Unnecessary Work, Unnecessary Costs and Wasted

Management Time

18

Contribution

20

The Criminal Investigation

20

Exemplary Damages

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STRUCTURE OF THIS JUDGMENT

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ENRC'S METHODOLOGY FOR CAUSATION AND LOSS ON THE PRIMARY CLAIMS

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Causation Counterfactuals

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Quantum: Unnecessary Work

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Period up to 17 May 2012 (“the Earlier Period”)

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Period after 17 May 2012 (“the Later Period”)

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Quantum: Unnecessary Costs

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Quantum: WMT

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DECHERT'S METHODOLOGY FOR CAUSATION AND LOSS ON THE PRIMARY CLAIMS

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Introduction

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Causation Points

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Quantum: Unnecessary Work

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Earlier Period

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Later Period

31

Quantum: Unnecessary Costs

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Quantum: WMT

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THE LAW

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Assessment of Factual Causation

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Inducement to Breach of Contract and Causation

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Remoteness: Reasonable Foreseeability

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The requirement of reasonable foreseeability

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Reasonable foreseeability and knowledge of probable loss

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Remoteness: Novus Actus Interveniens

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Failure to Mitigate

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Determining Quantum and the Broad Brush

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Other Points of Law

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FACTUAL CAUSATION AS AGAINST THE SFO GENERALLY

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Introduction

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The SFO'S Primary Case

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The SFO'S Secondary Case

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Presence of the DCs in the Counterfactual

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The Feedback Loop

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Prior breaches of duty on the part of Dechert

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A Proportionate Approach by the SFO

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Information and Materials available to the SFO in the counterfactual

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General Conclusion on the SFO's Secondary Case

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FACTUAL CAUSATION AS AGAINST DECHERT GENERALLY

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FACTUAL CAUSATION: THE CHRONOLOGY

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Introduction

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Period 1 — 17 August – 31 December 2011

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Period 2 — 1 January – 31 May 2012

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Period 3 — 1 June – 30 November 2012

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Period 4 — 1 December 2012 – 13 March 2013

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Period 5 — 14 – 31 March 2013

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THE CRIMINAL INVESTIGATION

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Introduction

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The Chronology

92

The Status and Import of the CEB and CAN

103

Introduction

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The CAN and the Reasons Email

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The CEB

107

Conclusion

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Events in 2013 Prior to the 17 April Meeting

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The 21 January Meeting

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The Kazakhstan report

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DC25

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27 March meeting, the s2A Notice and Dechert's Dismissal

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The Position of Mr Dalman

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Dealings with Fulcrum in April

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Conclusion.

111

Other Material

112

DCs other than the IDCs (“the Other DCs”)

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The OMs

112

Press Articles

112

Global Witness

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Intelligence referred to in the CEB

113

The RAID report

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The Depel Interview

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The other s2A interviews

114

SARs

115

The SFO'S Alternative Case on Making the CI Decision

115

Resignations

115

Addleshaw Goddard

116

Failure to produce an Africa report

116

Conclusion

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Overall Conclusion

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DEFENCES RAISED BY THE SFO

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Introduction

117

The Expansion Point

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The Workstreams Point

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Conclusion

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Remoteness: Novus Actus Interveniens

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Failure to Mitigate on the Part of ENRC

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APPROACH TO THE DETERMINATION OF QUANTUM

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General Approach on Unnecessary Work

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General Approach on Unnecessary Costs

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Objection by the SFO to ENRC'S Approach on Quantum

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SFO Objection Based on Payments by ENRC Management (UK) Limited

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QUANTUM ANALYSIS: UNNECESSARY WORK IN THE EARLIER PERIOD ON KAZAKHSTAN AND AFRICA

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Introduction

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Kazakhstan — Reason 1A

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Farm

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Procurement

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Iran

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Education

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Stripping

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Kazakhstan — Reason 1B

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Documentary Review, it Issues and Other Unnecessary Work (“Document Review”) — Reason 2

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Internal — Reason 3

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Unclear — Reason 4

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Sanctions – (after 5 March 2012) Reason 5

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Disproportionate Requests — Reason 7

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Chambishi — Reason 6

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Footnote 4

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QUANTUM: UNNECESSARY WORK IN THE LATER PERIOD ON KAZAKHSTAN

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QUANTUM: UNNECESSARY WORK IN THE LATER PERIOD ON AFRICA

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Introduction

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Africa Whistleblower

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Camrose and Camec

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Books and Records

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Data Protection

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General Bribery

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It Issues

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Multiple

150

Red Flags

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Sanctions

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QUANTUM: UNNECESSARY WORK IN THE LATER PERIOD ON BOTH

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Data Protection

151

Enrc Raid Training

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It Issues

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Multiple

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Remedial Actions

151

QUANTUM: UNNECESSARY COSTS

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Introduction

152

Addleshaw Goddard

152

Introduction

152

AG's Secondment Costs

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AG's Investigation Work

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Bridge 2 (“B2”)

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Introduction

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FRA

159

Introduction

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Dechert Reason 1

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Dechert Reason 2

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Dechert Reason 3

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Dechert Reason 4

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Dechert Reason 5

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Dechert Reason 6

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HS

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Introduction

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Dechert Reason 1

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Dechert Reason 2

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Dechert Reason 3

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Dechert Reason 4

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Dechert Reason 5

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Dechert Reason 6

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Dechert Reason 7

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Dechert Reason 8

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Conclusions on HS Costs

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KPMG

173

PWC

174

The Risk Advisory Group (“Trag”)

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WASTED MANAGEMENT TIME

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CONTRIBUTION

180

Introduction

180

The Law

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Apportionment

181

EXEMPLARY DAMAGES

183

CONCLUSIONS

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