Company & Commercial Law

Contractual Drafting & Disputes

Samuel Okoronkwo Jr

CLIENT ADVISED ON JURISDICTION AND CONTRACTUAL LIABILITY IN INTERNATIONAL ENGINEERING DISPUTE

Facts

The client entered into a verbal agreement with a UK-based construction company to provide engineering services for a project in Ramadi, Iraq. He prepared key pre-construction documentation, which was approved at a pre-construction meeting in October 2022, allowing the company to commence site activities. Following a leadership change at the contracting authority, two documents, prepared by others, were rejected. The client was later engaged to review and amend the documents at an hourly rate and completed extensive revisions. He was paid £2,000 for this work. In September 2024, the company contacted the client demanding compensation of $199,660, alleging that project delays were caused by his failure to resubmit the Accident Prevention Plan. The client believes the company is shifting blame for its own contractual failures and is considering legal action in the UK for breach of contract or defamation.

Issues

The client sought advice on whether he could initiate proceedings in the UK to defend against the compensation demand and reputational allegations.

Advice and Solution

Counsel, Mr. Samuel Okoronkwo Jr, advised that the client cannot pre-emptively defend a claim that has not yet been formally brought. Furthermore, UK courts are unlikely to have jurisdiction over the matter, as the contract relates to work performed in Iraq under an Iraqi tender. The allegations were made privately and are unlikely to meet the threshold for defamation. Counsel recommended that the client continue working with his Iraqi lawyer to address any potential proceedings locally. The client confirmed that he has already retained legal representation in Iraq.

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