Jersey third-party debt order not immune from enforcement under State Immunity Act 1978


Re: Boru Hatlari Ile Petrol Taşima AŞ & Ors v Tepe Insaat Sanayii AS [2018] UKPC 31

The first appellant Boru Hatlari Ile Petrol Taşima AŞ (Botaş) and the respondent Tepe İnşaat Sanayii AŞ (Tepe), are Turkish companies. A group of Main Export Pipeline participants led by BP engaged Botaş as main contractor under a turnkey contract for the construction and operation of the Baku-Tbilisi-Ceyhan pipeline. Botaş in turn inter alia, engaged Tepe as a sub-contractor for parts of the work. Tepe obtained arbitral awards, which Botaş has failed successfully to challenge in the French courts and failed to pay. Tepe sought to enforce the outstanding awards against shares held by Botaş in two Jersey subsidiary companies. The Jersey courts granted an interim arrêt entre mains in respect of the shares. Botaş challenged the order on the basis that the shares were immune from any process of enforcement under the State Immunity Act 1978 as extended to Jersey. The Privy Council dismissed the appeal.

Professor Zachary Douglas QC was involved in this case.