An appeal by oilfield and engineering giant Consolidated Contractors Oil & Gas Limited (CC (Oil & Gas)) and Consolidated Contractors International Company SAL (CCIC), subsidiaries of Consolidated Contractors Company (CCC) which operates out of Athens and London, founded by the Middle Eastern tycoons Said Khoury and Hasib Sabbagh, was rejected Thursday, 8th November 2007, by the House of Lords in a long running dispute over a Yemeni oilfield concession.
Today’s ruling paves the way for a $52m award to Munib Masri, a Palestinian businessman who signed an agreement with CC (Oil & Gas) and CCIC in 1992. The agreement concerned the sharing of revenues from production in the Yemeni Masila oil field, which would net Mr Masri 10% of CC (Oil & Gas) and CCIC revenues. The companies refused to pay the 10% and Mr Masri was forced to bring a claim for breach of contract.
Mr Masri won his case and under two Orders from the English High Court (dated 15th June and 26th October 2007) CC (Oil & Gas) and CCIC were required to pay to Mr Masri US$ 52,118,241 in relation to amounts owed to him under the agreement signed in 1992.
In July 2006 CCIC and CC (Oil & Gas) appealed the judgment on liability. This was struck out by the Court of Appeal in June 2007 following the companies’ failure to comply with the court’s order requiring them to pay to Mr Masri US$30 million as an interim payment.
Following the striking out of their appeal, CCIC and CC (Oil & Gas) appealed to the House of Lords to over-turn the decision on the basis of human rights arguments.
This final appeal was today rejected by the House of Lords (consisting of three Law Lords) who refused to grant permission to appeal on the basis that the appeal did not raise a point of general public importance.
The House of Lords also refused a separate application for permission to appeal made by CCIC and CC (Oil & Gas) in relation to another issue of contractual interpretation which affected the amount due to Mr Masri, worth in the region of US$ 20 million.
As a result of today’s ruling, CCIC and CC (Oil & Gas) have no further right of appeal to any court, which opens the way for Mr Masri to commence enforcement proceedings against the assets of CCIC and CC (Oil & Gas) on a worldwide basis.
CCIC and CC (Oil & Gas) are already in contempt of the English court by failing to comply with the existing orders requiring the payment of amounts owing to Mr Masri and are in breach of court orders requiring them to pay in excess of £800,000 in costs to Mr Masri.
Commenting on today’s final ruling, Simon Morgan, a Partner at Simmons & Simmons, representing Mr Masri said:
“This ruling is the culmination of a protracted legal battle and we have had to overcome many obstacles raised by the other side. My client, Mr Masri, is pleased and relieved that this issue now seems to be finally settled and that he can now proceed to recover the monies that are rightfully owed to him.”