Alleged wrongdoing by the Serious Fraud Office was not the cause of harm for which compensation is sought in a multi-million pound damages claim, the High Court has heard.

Mining giant Eurasian Natural Resources Corporation is seeking some £21 million in damages following the findings of Mr Justice Waksman in relation to the company’s claims against international firm Dechert and its former head of white-collar crime Neil Gerrard and his ’breach of duty induced by the Serious Fraud Office’. 

The SFO argues that wrongdoing does not necessarily cause harm and that SFO’s wrongdoing was ‘not necessary’ for ENRC to suffer the losses it alleges. Earlier during the hearing, Dechert argued that the SFO was liable for half of any payment due.

Simon Colton KC, for the SFO, said: ‘In particular this is not a case where SFO wrongdoing was necessary in order for ENRC to be caused harm. ENRC accepts this. Their own case is Gerrard’s wrongdoing alone in failing to report his leak was causative of all the losses for which ENRC claims.

‘ENRC cannot show on balance of probability that SFO wrongdoing caused pre-2013 losses,’ Colton said. ’It is up to the ENRC to pick which of the breaches they wish to rely on.’

He told the court ‘ENRC does not identify any particular losses that resulted’ from the wrongdoing found by Justice Waksman in the first trial. He added:  ‘The argument that Gerrard needed silent encouragement from the SFO before he would act in gross breach of his duties holds no water at all. He was…  bold enough already.’

Colton told the court that  Gerrard had said he was in ‘rape mode’ and planning to ‘screw’ ENRC for ’25 million’. He added: ‘None of this [which led to the ENRC’s alleged ‘unnecessary work] can be put at the SFO’s door’.

Waksman will determine what damages, if any, are payable to ENRC as a result of the wrongdoing found during the first phase trial last year.

The hearing continues.