Palestinian Firm’s Appeal to UK Privy Council

May 22, 2011

A Palestinian construction firm that had its on-island assets frozen two years ago will appeal to the UK Privy Council on Thursday. Consolidated Contractors International Company SAL v Munib Masri will be the only appeal to be heard in the Privy Council on May 26th, 2011.

According to the Judicial Committee of the Privy Council, “In this case from the Court of Appeal in Bermuda, the Privy Council is to decide (i) whether s.4 Judgments (Reciprocal Enforcement) Act 1958, so far as it deals with foreign judgments obtained (or allegedly obtained) by fraud, should be interpreted consistently with the common law and the (English) statutory provisions for the registration of foreign judgments, as this was determined by the House of Lords in Owens Bank Ltd v Bracco; (ii) whether the Appellant is entitled to apply to have the registration set aside on the ground that the English judgments were obtained by fraud as to the jurisdiction of the court; (iii) whether the Court of Appeal should have ordered that the allegations of fraud made against the Respondent should have been ordered to be tried as an issue, and the judgment of the Supreme Court stayed until the final determination of that issue; and (iv) whether it was just and convenient for the English judgments to be enforced in Bermuda.”

Consolidated Contractors International Company’s on-island holdings were first frozen during a business dispute with Palestinian tycoon Munid Masri in 2009. In November of that year, the company unsuccessfully attempted to appeal the decision in the Bermuda Court of Appeal.

As previously reported by Bernews, the company’s earlier attempt to have Puisne Judge Ian Kawaley’s decision regarding its Bermuda assets set aside was dismissed as “unmeritorious” by the Bermuda Court of Appeal, which noted in its decision: “The Appeal was heard on 13 November 2009 when the Appellants were represented by Alexander Layton QC making his first appearance before the Courts in Bermuda. We are grateful to him for his skilled and restrained submissions, notwithstanding that their content was of so little merit.”

Founded in Haifa in 1943, Consolidated Contractors Company is largely controlled by Palestinian entrepreneur Said Khoury and his family. It is actively involved projects across the Middle East in areas such as heavy civil construction, mechanical construction, pipeline construction and other large projects.

The company has given generously to UK political campaigns, including £118,000 donated to the Conservative Party since 2010.

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