Eurasian Natural Resources Corporation (ENRC) has entered trial proceedings against the Serious Fraud Office (SFO) and Dechert, to claim a reduced figure of $168m in losses incurred during a decade-long investigation.
The company is seeking damages following previous court rulings that found the SFO, throughout its investigation, and retired Dechert partner Neil Gerrard, throughout his representation of ENRC which concluded in 2013, had acted unlawfully.
ENRC is now seeking $168m in compensation, reduced from $290m, for losses it incurred as a result of the investigation.
The SFO begun its investigation into ENRC in 2013 before closing it in 2023, without bringing any charges against the company. ENRC accused Gerrard of leaking news to the press in 2011 and 2013, which the company believes launched the SFO investigation.
The case, originally pursued by ENRC against Dechert in 2017 and against the SFO since 2019, is being heard at the Commercial Court, King’s Bench Division, in the second phase of proceedings this week.
The first phase of the trial was concluded in 2022, where the High Court ruled in favour of ENRC. This was appealed by Dechert and SFO, but ultimately upheld at the Court of Appeals in 2024.
In a statement, head of litigation strategy for ENRC Dmitry Vozianov said: ‘Dechert should be held to account in full for conduct that the High Court found involved grave breaches of duty to its own client. Conduct of that nature has no place in the legal profession.’
‘The SFO should likewise be held accountable for what the Court has already ruled as serious wrongdoing, including bad-faith opportunism, and for pursuing an investigation that ran for more than a decade without a single charge being brought. ENRC self-reported and cooperated, yet still faced years of unnecessary and deeply damaging process,’ he continued.
LB understands that, for losses in the phase 2 period, from March 2013 to August 2023, the SFO would seek a substantial contribution from Dechert, in line with previous splits of damages.
A spokesperson for the SFO said: ‘We strongly contest ENRC’s position and will challenge this at trial. All damages must be based on proof of loss.’
In a statement, a Dechert spokesperson said: ‘Dechert denies it is liable for any losses claimed in Phase 2 of the litigation.’
