The High Court of England & Wales has found that a notice served in the UK under Section 2 of the Criminal Justice Act 1987 on the U.S.-based general counsel of KBR Inc. was enforceable, thereby requiring the disclosure of documents held in the United States.
Despite the fact that the documents in question are not located in the UK nor under the control of the UK subsidiary, the Court decided that KBR Inc. had a “sufficient connection” with the UK for the notice to be enforceable because of the company’s role in payment approval and processing for its UK subsidiary.
Sam Tate of Reynolds Porter Chamberlain LLP warns that “failure to comply with a Section 2 notice can potentially leave the recipient personally open to criminal prosecution. Therefore, this decision may reduce the appetite of senior U.S. staff to attend [Serious Fraud Office] meetings in person without seeking advice and where relevant assurances in advance.”