Hunt v. BP Exploration Company (Libya) LTD. (“Hunt I”)

Nelson Bunker Hunt (plaintiff) was an American citizen who entered into a joint venture with BP Exploration Company (Libya) LTD (BP) (defendant), an English company, to explore and develop an oil field in a concession granted to Hunt by the Libyan government. Hunt agreed to give BP a one-half interest in the concession plus a payment based on the production of oil, and in exchange, BP agreed to pay for certain initial exploration and development costs. Several years later, the Libyan government nationalized the concession, and BP and Hunt lost their interests in the concession. BP sued Hunt in England, claiming that the contract was frustrated when the Libyan government took its interest in the concession, and that Hunt had benefited from BP’s performance of its obligations under the contract before the concession was taken. After BP was unsuccessful in serving Hunt personally, the English court granted BP’s request to serve Hunt by mail. Hunt sought a dismissal of the English action for lack of personal jurisdiction. The English court denied Hunt’s request for dismissal. The English case proceeded to trial, which resulted in a judgment against Hunt, and Hunt appealed. While the English proceedings were still pending, Hunt filed suit in United States federal district court, seeking a declaratory judgment that he owed nothing to BP. BP moved for summary judgment based on the English judgment, but Hunt argued that the English judgment should not be recognized in the United States because, among other things, service of the complaint did not comport with United States due-process requirements, the judgment violated several public policies of the United States, and England did not reciprocate recognition of American judgments.