Case details

Boru Hatlari lle Petrol Taşima AŞ and others (also known as Botaş Petroleum Pipeline Corporation) (Appellants) v Tepe Inşaat Sanayii AŞ (Respondent) (Jersey)

Case ID: JCPC JCPC 2016/0104

Jurisdiction: The Court of Appeal of Jersey

Case summary

  1. Is "day-to-day", "immediate" or "direct" control required to engage a State’s immunity from enforcement and is sufficient control made out here?
  2. Whether the relevant "interest" to engage the immunity could only be made out where the State had a "legal, equitable or contractual" interest in the property.
  3. Whether the decision of the Board in FG Hemisphere requires that the assets protected by the immunity must always be the same as those against which a judgment against the State could be enforced.

The first appellant ("Botaş") holds the shares of the second and third appellants, although a series of provisions of Turkish law gives the Republic of Turkey control over the use, possession and disposition of the shares, as well as the power to appoint the company directors and other powers. Botaş is also wholly owned by the Republic. Botaş engaged the respondent as construction and engineering sub-contractors for works on a pipeline under a number of contracts. Disputes arose between Botaş and the respondent in relation to those contracts, leading to arbitration proceedings instigated by the respondent. As a result of those proceedings arbitral awards were made in favour of the respondent against Botaş for approximately US$ 100 million.

The respondent presented two Representations to the Royal Court to enforce the awards in Jersey. The Royal Court gave the respondent permission to enforce the awards, rejecting an argument that the Republic of Turkey was entitled to assert immunity in relation to the shares of the second and third appellants held by Botaş. The Court of Appeal agreed with the Royal Court on the state immunity issue, albeit for different reasons.



Boru Hatlari lle Petrol Tasima AS


Tepe Inşaat Sanayii AŞ



Lord Mance, Lord Sumption, Lord Reed, Lord Lloyd-Jones, Lord Briggs

Hearing start date

05 Jun 2018

Hearing finish date

06 Jun 2018

Watch hearing
05 Jun 2018 Morning session Afternoon session
06 Jun 2018 Morning session Afternoon session