Groundbreaking Legal Precedent

In May 2022, following an 11-week trial, Justice Waksman delivered a landmark judgment (the "Phase 1 Judgment") that uncovered "extraordinary" and "almost unimaginable" misconduct by Neil Gerrard, ENRC's former solicitor, alongside three former SFO officers, which was directly linked to the unlawful opening of a ten-year criminal investigation into ENRC.

These findings laid the foundation for a subsequent ruling in December 2023 (the "Phase 1A Judgment"), which concluded that the SFO would not have launched its decade-long criminal investigation into ENRC but for the unlawful conduct of its officers and Gerrard. As part of the Phase 1A proceedings, ENRC was awarded substantial damages in respect of legal fees incurred up to and including March 2013 and costs.

Court of Appeal Endorses Finality of Judgments

In April 2024, the SFO, Dechert, and Gerrard sought permission to appeal these rulings. However, the Court of Appeal, led by Lord Justice Males, refused their application, affirming that there was no basis for a successful appeal against the factual findings of the trial court. This decision is final and cannot be further reviewed or appealed. As a result, the damages and costs awarded to ENRC remain intact, with the proceedings now moving into "Phase 2" to determine further losses suffered by ENRC due to the SFO's investigation, which was abandoned in August 2023 without any charges, ending its decade-long corruption inquiry. ENRC had always denied any wrongdoing. A trial date for those Phase 2 proceedings has not yet been set.

Legal and Financial Implications

The Court of Appeal's refusal to allow the SFO to challenge the earlier judgments draws to a close any questions of the facts in the proceedings, and is definitive on the question of the SFO and Dechert’s liability for damages. The appellate court supported Justice Waksman's findings, highlighting the serious breaches committed by the SFO and the unlawful actions of Neil Gerrard and Dechert. The judgment confirms that the criminal investigation into ENRC would not have been launched without these unlawful breaches, and that the resulting damages and management losses suffered by ENRC were foreseeable and legally justified.

This ruling marks a significant milestone in ENRC's ongoing efforts to hold those responsible accountable for their actions. ENRC remains committed to pursuing full compensation for the substantial damages incurred and will continue to seek justice in the upcoming phases of this litigation.