OCM Maritime Nile LLC & Anor v Courage Shipping Co & Ors [2024] EWHC 1226 (Comm) (21 May 2024)
In a long running commercial dispute, Cockerill J has made an order committing a defendant to prison for 18 months and confiscating his assets as a result of breaches of a worldwide freezing order and lies told in a witness statement. The judgment provides a definitive statement of the law of civil and criminal contempt of court in the commercial context by way of breach of court order, knowingly making false statements in documents verified by a statement of truth and knowingly making false affidavits. Cockerill J also addressed the sentencing guidelines for imprisonment in this context. Michael Ryan appeared for the successful claimant, OCM Maritime.
Following success at trial in obtaining orders for the repossession of two high-value commercial vessels, OCM successfully joined the controller of the defendant companies, Mr Abdul Jalil Mallah, to the action to seek a third party costs order and obtained a worldwide freezing order against Mr Mallah.
Following a two-day contempt trial at which Mr Mallah was cross-examined, Cockerill J found that Mr Mallah was in contempt of court on three counts:
Cockerill J also addressed the law on knowingly making a false affidavits, confirming that this is a head of criminal contempt, but the Commercial Court retains an inherent jurisdiction to punish such conduct when arising during its proceedings.
The sentence for this conduct was 18 months plus an asset confiscation order, reflecting the seriousness of the contempt established. Cockerill J set out a comprehensive statement of the sentencing guidelines in this area.
Michael Ryan appeared for the successful Claimants instructed by Charles Weller and CJ Kim of Reed Smith.