Traxis: on forum non and burden of proof.

Traxys Europe SA v Sodexmines Nigeria Ltd [2020] EWHC 2195 (Comm)  concerns the alleged dishonest substitution by Sodexmines Nigeria Limited in Nigeria in 2018 of a virtually worthless product in place of a valuable tin product which it had agreed (with choice of court and law pro England) to sell to the Claimant, Traxys Europe SA.  Second defendant is the beneficial owner and alter ego of the First Defendant (note at 31 Teare J’s insistence that they are legally separate and distinct persons). Permission to serve Mr. Ali out of the jurisdiction was granted on the basis that he was a necessary and proper party to the claim against First Defendant and that England is the proper place in which to bring the claim.

Mr Ali has applied for a stay (oddly not: an application to set aside the service order) on forum non conveniens grounds, which would ordinarily per Lord Goff in Spiliada (see discussion at 9 ff) with Teare J here at 11 holding he

‘should have regard to the substance of the matter, namely, that this is a case where the Claimant was not entitled to commence proceedings against Mr. Ali “as of right” (the expression used by Lord Goff at p.481 E) but needed to persuade the court, not only that there was a jurisdictional gateway permitting service out, but also that England was the forum conveniens for the claim against Mr. Ali. Thus, notwithstanding that as a matter of form and language Mr. Ali is seeking a stay, I consider that once battle lines were drawn as to whether England was the forum conveniens the burden lay on the Claimant to establish that England was the forum conveniens.’

At 16-17 arguments for both are listed, summarily discussed (per Lord Briggs’ instruction in Vedanta) with conclusion at 38

the claim against him lies in tort. The events which have given rise to those claims took place (in the main) in Nigeria. The witnesses upon whom the Claimant will rely to establish their claim against Mr. Ali are in Nigeria. In truth this is a Nigerian case, not an English case. The centre of gravity of the case is in Nigeria, not in England. To use the phrase used in one of the cases to which I was referred “the fundamental focus of the litigation” is on Nigeria, not England.

Of note is that the contractual and in all likelihood tort case against the first defendant will go ahead. I am not au fait whether leave to appeal was granted. On burden of proof, Teare J’s findings are quite relevant and must be I imagine subject to differences of view.

Geert.