On 22 January 2025, Mr Justice Henshaw handed down judgment in Arcadia v Bosworth, Hurley & Kelbrick [2025] EWHC 91 (Comm) dismissing all of the claims after a 10-week trial during May-July 2024. The action was commenced 10 years ago and is understood to be one of the longest-running cases in the Commercial Court.
The claimants alleged that the defendants had perpetrated a $325m fraud in relation to 144 crude oil transactions between April 2007 and May 2013 relating to oil originating in West Africa. Henshaw J dismissed all of the claims and held that Mr Bosworth, Mr Hurley, and Mr Kelbrick all acted honestly in relation to the relevant transactions. In relation to Mr Kelbrick, Henshaw J held that he was “fully satisfied that he acted honestly in relation to the transactions he was involved in” ([1007]); and that he had “no doubt whatsoever that his evidence was honestly given” ([37]).
Henshaw J also found that: (i) Mr John Fredriksen, who had authorised the litigation, “had convinced himself that he had been defrauded and was unwilling to reflect on that belief even where the facts suggested otherwise” ([22]); (ii) the Claimants had “destroyed relevant, potentially highly relevant documents during the course of the litigation” ([24]); (iii) there was a “complete lack of substance in … long-pursued but unmeritorious allegations of deliberate deception” ([925]).
The Judgment also summarises law in relation to allegations of dishonesty ([836]-[838]), unlawful means conspiracy ([839]-[842]), breach of fiduciary duty ([843]-[867]), dishonest assistance ([868]-[871]), and knowing receipt ([872]-[875]).
A copy of the judgment can be found here.
Freddie Popplewell acted for Mr Kelbrick and Attock Mauritius (the Fifth and Ninth Defendants), led by Tom Sprange KC and instructed by Sarah Walker of King & Spalding International LLP.
