London, 22 May 2015 –The High Court in London has rendered its Judgment in Citibank’s well-publicised claim against Mercuria Energy for payment of USD 270 million. The Court has found in Mercuria’s favor.
The key issue in this case was whether Citi are entitled to payment of some USD 270 million from Mercuria in relation to warehouse receipts delivered by Citi on 22 July 2014. Mr Justice Phillips held that Citi is not entitled to a money judgment against Mercuria for the price of the metal because Citi’s tender of endorsed receipts was not good delivery of metal.
In relation to a separate transaction, the Judge also held that Citi are liable to pay Mercuria damages for failing to deliver metal that had been paid for by Mercuria.
The Judge did find that Citi have a right to terminate the underlying Master Agreements between Citi and Mercuria but, without a money judgment in their favour, this is a largely technical issue.
The Judgment has justified Mercuria’s approach to this matter.
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