Clyde & Co: Libyan Investment Authority Update

The decision of Glenn Maud v The Libyan Investment Authority decided on 8 June 2015 is of interest to those involved in the sanctions field.

A claim was made by The Libyan Investment Authority (LIA) under a guarantee given by Mr Maud in his personal capacity in April 2008, before the imposition of sanctions against Libya in March 2011. The guarantee covered the default of a company (Propinvest Group Ltd). The guarantee was overdue as from 2 March 2010. There was no dispute that the company had defaulted. LIA served a Statutory Demand on Mr Maud based on the guarantee issued in April 2008. The Statutory Demand was challenged by Mr Maud on grounds that to pay would amount to a breach of sanctions, and accordingly that it should be set aside.