The UK High Court has determined that both the UK Serious Fraud Office (SFO) and the law firm Dechert are liable to pay damages to the Eurasian Resources Group (ERG). This ruling was based on their unlawful actions and marks a substantial triumph for the Kazakh mining company.
The court’s judgment underscores the accountability of the SFO and Dechert for their actions and represents a significant legal victory for ERG. According to the novinite, a possible compensation could reach significant sums in the millions of pounds that can be received by ERG.
The court’s recent ruling deemed the initiation of a criminal investigation by the Serious Fraud Office (SFO) into ERG in 2013 as unlawful. The investigation was influenced by unauthorized information from former Dechert partner Neil Gerrard.
It was concluded in August 2023 due to insufficient evidence. This legal ordeal incurred unnecessary labor and financial costs for ERG. This decision was mainly handed down by Judge David Waxman of the High Court, who elucidated the misuse of a lawyer, Neil Gerrard, as a confidential informant. It also shed light on the financial repercussions for ERG.
Consequently, the court mandated that both the SFO and law firm Dechert must pay costs and damages to ERG. While ERG initially sought over £21 million in compensation, Dechert has already disbursed around £9 million, leaving an outstanding claim of nearly £12 million that needed to be paid to ERG.
The court assigned a quarter of the damages to the SFO and hold Dechert and Neil Gerrard jointly liable for the remaining amount. The final sum will be determined in an upcoming hearing that is scheduled in early 2024.
Apart from immediate damages, ERG is pursuing up to $1 billion in damages for future losses related to a separate criminal investigation. This aspect will be addressed in subsequent court hearings. The SFO, led by new director Nick Ephgrave, and Dechert are currently reviewing the High Court verdict and preparing to navigate the complexities of addressing damages.
This case serves as a examplary risk against the improper use of lawyers by law enforcement agencies and emphasizes the potential financial and reputational risks involved. It also underscores the importance of compliance with rules and regulations in legal ethics, challenging the abuse of attorney-client privilege and the use of lawyers as secret informants for law enforcement agencies.
The insistence on compensation by ERG reflects an attempt to safeguard its reputation and financial interests. It potentially sets a crucial precedent and enhances client confidence in their dealings with law firms and law enforcement agencies.
As a result of this decision, potential changes in standards and practices can be observed in legal compliance, confidentiality, and cooperation with attorneys during criminal investigations. The case has the potential to reshape norms in these crucial areas and help make unbiased decisions.