Josh Dickinson

In Virgo Marine Inc and Nixie Marine v Reed Smith LLP and Barclays Bank PLC [2025] EWHC 1157 (Comm.), the High Court refused Reed Smith’s application for £6 million in security for costs against Zaiwalla & Co’s Dubai-based shipping clients. The claim arises from the freezing of approximately US$13.3 million held in escrow following Virgo Marine’s designation under US sanctions. Although Reed Smith later accepted that its London office was not subject to US sanctions and instructed Barclays to release the funds, the bank declined to do so.

Virgo and Nixie commenced proceedings in negligence, breach of contract and breach of trust. Mr Justice Foxton rejected Reed Smith’s security application, holding that there was insufficient evidence that Barclays would refuse to comply with an English court order, describing the contrary evidence as “thin and unpersuasive.”