Virgo Marine and Nixie Marine v Reed Smith and Barclays Bank has been featured in The Lawyer’s Top 20 Cases of 2026. View here.
Zaiwalla & Co acts for UAE-based Virgo Marine (designated by US OFAC) and Panama-incorporated Nixie Marine in ongoing High Court proceedings arising from the collapse of a US$20 million ship purchase.
The dispute concerns the reporting of Virgo’s US OFAC designation to Barclays Bank by the London office of Reed Smith, who were acting as escrow holders for the transaction. Following that notification, Barclays froze the clients’ funds, resulting in the collapse of the intended vessel acquisitions. Proceedings were issued against Reed Smith, with Barclays subsequently joined as a Part 20 Defendant.
The litigation raises questions as to whether a US sanctions designation can affect a non-US commercial contract. The case is also expected to provide judicial consideration of the interaction between US sanctions regimes and the EU Blocking Statute, which seeks to limit the extraterritorial reach of US legislation in certain circumstances.
The matter remains ongoing, with disclosure underway and trial anticipated in 2026. Its inclusion in The Lawyer’s Top 20 Cases of 2026 reflects the attention the case has attracted within commercial litigation and sanctions law.
