Procedural Posture

The English High Court of Justice (Commercial Court) considered applications by Soprim Construction SARL (Claimant) to enforce arbitral awards against the Republic of Djibouti (Defendant) via a final charging order over funds held in London bank accounts in the name of Doraleh Container Terminal SA (DCT). The Objecting Parties, DP World Djibouti and DCT, opposed the charging order and applied to set aside the arbitration claim form.

Principal Legal Issues

The principal issues included: (i) whether the funds in the Standard Chartered Bank (SCB) accounts were held on bare trust for Djibouti under English law; (ii) whether the Djiboutian court judgments appointing administrators and liquidators over DCT should be recognized in England, or refused on public policy or natural justice grounds; (iii) whether the court should exercise its discretion to grant a final charging order; and (iv) whether the arbitration claim form was validly served.

Parties' Positions

Soprim argued that Djibouti exercised complete control over DCT and its administrators, creating a bare trust over the SCB accounts, and that the charging order should be made final. The Objecting Parties contended that the administrators lacked authority, asserting that their appointments breached English anti-suit injunctions and arbitration agreements, and were procured through improper influence. They further disputed the existence of a trust and opposed the charging order on discretionary grounds.

Court's Analysis and Findings

Mr Justice Picken determined that the SCB accounts were situated in England, making English law the applicable law of the alleged trust. The court inferred from the factual matrix—including Djibouti's systemic control over DCT and the administrators' actions aligning entirely with the State's interests—that an agreement existed whereby DCT held the funds on bare trust for Djibouti. The court rejected the Objecting Parties' arguments against recognizing the Djiboutian judgments, finding no direct breach of the English injunctions by the relevant parties. Furthermore, the court held there was insufficient specific evidence that the Djiboutian court decisions appointing the administrators were perverse or breached natural justice. The court also dismissed the set-aside application regarding service of the claim form, confirming it was served within the applicable time limits.

Operative Directions

The court granted Soprim's application for a final charging order over the entirety of the amounts contained in the SCB accounts. The court rejected alternative applications for a third-party debt order and a receivership order, and dismissed the Objecting Parties' set-aside application.