Mark Denning v Arcem Resources Limited & Anor

Facts

By a Loan Agreement dated 18 December 2019, governed by English law under clause 8 of that agreement, the claimant, Mr Mark Denning, lent US$1 million to the first defendant, Arcem Resources Limited, to provide emergency funding for operations at a coal mine in Mozambique. The second defendant, Mr Christopher Main, guaranteed Arcem's repayment obligations. The loan fell due for repayment in March 2020. The claimant demanded payment in May and June 2020, but the loan was not repaid. On 13 June 2021 the parties signed a Security Letter, sent on the letterhead of the claimant's then solicitors. It referred to the Loan Agreement and to other loan agreements, required Arcem to grant security, and contained an English exclusive jurisdiction clause. The Loan Agreement itself had no jurisdiction clause. After further demands in 2025, the claimant issued proceedings on 27 November 2025 claiming about US$2.9 million in principal and interest. He served the defendants outside the jurisdiction without permission, relying on CPR 6.33(2B)(b) or (c) and the jurisdiction clause in the Security Letter. The defendants disputed liability and applied under CPR Part 11 to challenge the court's jurisdiction. The claimant cross-applied, in the alternative, for permission to serve out under paragraph 6(c) of CPR PD 6B and for an extension of time for service. The cross-application was heard ex parte, on notice.