San Leon awarded €16m damages after Canadian asset firm fails to submit defence

Dublin-headquartered gas and oil exploration firm San Leon plc brought the action against Tri Ri Asset Management Corp

The defendants, Tri Ri Asset Management Corp, initially indicated they would contest San Leon’s case but were not represented in the High Court in Dublin. Stock picture: Alamy

San Leon, the Dublin-headquartered gas and oil exploration firm, has been awarded damages in the region of €16m by the High Court, after a Canadian asset management firm sued by San Leon over reneging on an investment agreement failed to defend the lawsuit.

San Leon plc brought the action against Tri Ri Asset Management Corp (Tram) last March, accusing the Toronto-based firm of failing to follow through on a deal to swap 419,000 shares in US technology firm Palantir for a 10% shareholding stake in San Leon.

San Leon, with offices on Crampton Ave, Dublin 4, also sued father and son Shan Ahmad Ali and Asad Ali, director and chief investment officer of Tram respectively and both with addresses in Toronto.

The Tram defendants failed to enter a defence to the lawsuit. Last month, the High Court granted judgment to San Leon in default of defence against the Tram defendants.

If a litigant does not enter a defence to a High Court action, the suing party can apply for judgment in default of defence and bypass the need for a full trial of the action.

This week, senior counsel Gary McCarthy, appearing for San Leon with barrister Declan Harmon, and instructed by Turners solicitors, opened before Judge Oisín Quinn evidence of losses sustained by San Leon on account of the Tram defendants’ wrongdoing.

The Tram defendants were not represented.

The judge assessed the appropriate damages to be awarded to San Leon against Tram at $18,171,500 (€15,687,092).

The judge reached this figure by taking the value of 419,000 Palantir shares due to be transferred to San Leon at the time of the deal, and deducting the value of a 10% stake in San Leon to be transferred to Tram.

The judge also added 2% interest to the damages figure.

San Leon brought the case against Tram, alleging breach of contract, and against Shan Ahmad Ali and Asad Ali, alleging conspiracy and intimidation, among other alleged wrongs.

The Tram defendants initially indicated they would contest San Leon’s case, and instructed Arthur Cox to act for them. Solicitors acting for Tram filed papers challenging the court’s jurisdiction to hear the case.

However, Mr Cox came off record for Tram in October after “the relationship of trust and confidence” between the solicitors and the clients broke down “irreconcilably”.

According to court documents, when Mr Cox sought to come off record, the solicitors had been unable to obtain instruction from Tram for some time, and had not received payment for their services.

Tram did not retain new solicitors following the development.