Legal News

Caught in the middle—Escrow agent not required to pay funds over where at risk of prosecution (PetroSaudi Oil Services v Clyde & Co)

Published on: 18 March 2021
Published by: LexisPSL
  • Caught in the middle—Escrow agent not required to pay funds over where at risk of prosecution (PetroSaudi Oil Services v Clyde & Co)
  • What are the practical implications of this case?
  • What was the background?
  • What did the court decide?
  • Case details:

Article summary

Private Client analysis: The court declined to make orders that funds held by an escrow agent should be paid into court with monthly payments out to the party entitled to the funds. The court held that the escrow agent faced a real risk of prosecution or civil liability in the USA if it parted with the funds (even under an order of the English court) which outweighed the other party’s need for the money. The judgment gives useful guidance on how the court will assess the risks and balance the competing factors in such a situation. Written by Elizabeth Weaver, barrister XXIV Old Buildings, Lincoln’s Inn. or take a trial to read the full analysis.

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