Executive Summary
- The case concerns costs allocation in complex multi-party litigation involving the Republic of Mozambique, Credit Suisse International, the Privinvest Companies, and Ms Lucas (former Director of Treasury of Mozambique).
- Mozambique made allegations against Ms Lucas but did not bring a formal claim; the Privinvest Companies initiated a Part 20 additional claim against Ms Lucas contingent on Mozambique’s allegations.
- The court struck out the additional claim against Ms Lucas, who now seeks costs from the Privinvest Companies.
- The Privinvest Companies seek costs from Mozambique, arguing Mozambique’s allegations caused the additional claim.
- The court ruled that the Privinvest Companies must bear the costs of their additional claim against Ms Lucas, rejecting cost liability on Mozambique.
Sanctions Highlights
- — No sanctions implications identified in the judgment or proceedings.
Emerging Risks
- Multi-party litigation involving contingent claims can create complex cost liabilities and strategic risks.
- Parties initiating additional claims based on unproven allegations risk bearing full costs if claims fail.
- Defensive litigation strategies by third parties (Privinvest Companies) may increase exposure to cost orders.
- Risk of cost disputes escalating in multi-party cases where claims and allegations overlap but are not formally pursued by all parties.
Geopolitical Impact
- — No direct geopolitical significance or involvement of other countries beyond Mozambique noted.
Economic Intelligence
- The judgment highlights financial exposure for corporate defendants (Privinvest Companies) in litigation linked to state allegations.
- Costs rulings may influence future litigation funding and risk assessment in cases involving sovereign states and financial institutions.
- Credit Suisse’s settlements and Mozambique’s strategic litigation decisions impact cost distribution but do not shift liability to the state.
- The ruling underscores the economic consequences of pursuing or defending contingent claims in complex commercial disputes.
Strategic Recommendations
- Parties should carefully assess the reasonableness and risks before issuing additional claims contingent on third-party allegations.
- Litigation strategies must consider potential cost liabilities, especially in multi-party proceedings with overlapping claims.
- States and financial institutions should coordinate closely to avoid unnecessary cost exposure from parallel or contingent claims.
- Legal teams should seek early resolution or cost agreements to mitigate protracted cost disputes.
- Monitoring cost rulings in multi-party litigation can inform risk management and budgeting for future cases involving sovereign entities and corporate defendants.
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**Source Notes:**
*Sanctions Intelligence Digest* — [https://empyreanprotocol.com/litigation/view/www.bailii.org/ew/cases/EWHC/Comm/2025/395.txt](https://empyreanprotocol.com/litigation/view/www.bailii.org/ew/cases/EWHC/Comm/2025/395.txt)