TAURUS PETROLEUM LTD V STATE OIL MARKETING COMPANY OF THE MINISTRY OF OIL, REPUBLIC OF IRAQ

[2015] EWCA Civ 835, Court of Appeal, Lord Justice Moore-Bick, Lord Justice Sullivan and Lord Justice Briggs, 28 July 2015

Arbitration - Enforcement of award - Third party debt order - Appointment of receiver - Situation of debt - Whether state immunity applied to the debts - CPR Part 72 - Rome I Regulation, article 4 - State Immunity Act 1978, sections 13 and 14

Under a series of contracts, SOMO agreed to sell oil to Taurus. In February 2013 Taurus obtained a final UNCITRAL arbitral award against SOMO in respect of demurrage and under a performance bond. In March 2013 the Commercial Court granted permission to enforce the award in the same manner as a judgment, made third party debt orders under CPR Part 72 against ST and CA in respect of purchases from SOMO and ordered the appointment of a receiver in respect of moneys due under a letter of credit issued by CA. SOMO applied to set aside the TPDOs and the appointment of a receiver, relying on the State Immunity Act 1978. It was argued that sums for Iraqi oil were to be paid into the account of the Central Bank of Iraq held at the Federal Reserve Bank New York. If CBI was a joint promisee, the debts would not be owed solely to SOMO and thus fell outside CPR Part 72. The Court of Appeal held as follows.