MetalNRG notches up another legal win as former CEO is denied an appeal

A Scottish court has ruled in MetalNRG‘s favour in another legal win against a former associate regarding his dismissal from the natural resources investor.

Pierpaolo Rocco, the chief executive of BritEnergy, had sought compensation for expenses incurred when taking legal action concerning his employment at the company, which he left in October 2021.

Rocco also wanted to be reimbursed for any legal costs from action taken against him, and receive a £50,000 ‘exit bonus’ payment he believes was owed to him.

Court case: MetalNRG originally began legal action against BritEnergy and Rocco in January 2022 over its holding in the BritNRG joint venture 

MetalNRG told investors on Thursday that the Sheriff Appeal Court in Scotland had refused to grant an appeal on the first matter, though it has ordered further submissions on costs should the two parties fail to reach an agreement.

The business said it would look to get back the costs of defending such an appeal, in addition to the costs awarded to the group in connection with the first decision.

Rocco now has a fortnight to seek leave to appeal to the Inner House of the Court of Session, Scotland’s supreme civil court.

‘We are delighted with this outcome in Scotland which once again fully vindicates our approach,’ remarked Rolf Gerritsen, MetalNRG’s chief executive.

Back in December, Rocco withdrew a claim of ‘unfair prejudice’ against Gerritsen, two other MetalNRG directors and the company itself.

He alleged that the business had reneged on certain transactions on a false and misleading basis and that Gerritsen had received excessive remuneration.

Just before the deadline to provide evidence supporting his application, Rocco backed down and agreed to enter into a consent order with MetalNRG and its leadership.

MetalNRG originally began legal action against BritEnergy and Rocco in January 2022 over its holding in the BritNRG joint venture.

MetalNRG had intended to boost its stake in the venture, which acquires UK oil and gas assets, to 50 per cent, and made a series of payments worth more than £1million to BritEnergy.

Yet it tore up the deal after discovering that Mr Rocco had failed to declare a major stake he owned in BritEnergy and sought legal redress.

In September, a summary judgement denied Brit Energy and BritNRG leave to appeal and instructed them to compensate MetalNRG to the tune of £1.02million, plus interest and costs.

The following month, MetalNRG launched enforcement proceedings against the joint venture and LLP, saying they had not paid out most of the money it was owed. 

Two weekz ago, the pair were ordered by the High Court to hand over the outstanding £574,000.

Based in London, MetalNRG has five significant investments, including a gold mining project in Lake Victoria, Tanzania, a uranium deposit in Kyrgyzstan, and the Gold Ridge project in Arizona, USA.

In the opening six months of 2022, the company reported a £1million loss as it spent close to £630,000 in legal and professional fees on the BritNRG case.

This post first appeared on Dailymail.co.uk