Monrovia, Liberia –A new legal battle has erupted in Liberia’s commercial court system, as Mutual Benefits Assurance Company has filed civil and criminal proceedings against Bea Mountain Mining Corporation, accusing the mining giant of malicious prosecution, legal harassment, and reputational harm.
The dispute centers on a protracted legal saga that originated from contractual issues between Bea Mountain and International Construction Engineering (ICE)-a contractor for whom Mutual had issued performance bonds.
Although the original dispute was fully settled through international arbitration and later enforced by a U.S. federal court, Bea Mountain has reportedly reignited the case in Liberia in an alleged attempt to reclaim a $6.6 million award already resolved.
Arbitration and U.S. Judgment
The matter was previously adjudicated in a binding arbitration under the Sixth Edition of the Rules of Arbitration of South Africa, which concluded in January 2017.
The tribunal awarded Bea Mountain a total of $9.9 million in counterclaims against ICE, offsetting approximately $3.2 million in ICE’s equipment already retained by Bea Mountain. This resulted in a net award of $6.67 million.
That award was recognized and converted into a judgment by the United States District Court for the Eastern District of Virginia in 2018 under the New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards, effectively closing the case internationally.
Allegations of Legal Abuse
Despite this resolution, Bea Mountain allegedly filed a fresh lawsuit in Liberia in 2021 seeking the same recovery, prompting Mutual to act. The insurance firm is now accusing Bea Mountain of “duplicative litigation” and “abuse of judicial process.”
“This is a textbook case of malicious prosecution, designed to inflict commercial harm and public embarrassment on a licensed insurer who was not even a party to the arbitral proceedings,” said Counselor Aloysius T. Jappah, legal representative for Mutual.
Legal Action Taken
Mutual Benefits has launched a three-pronged legal counteroffensive including civil suit for malicious prosecution and abuse of process seeking substantial damages.
A petition for Prohibition to halt the Liberian proceedings based on the finality of the arbitration and U.S. court judgment.
According to Mutual Assurance, the criminal proceedings under Liberian law alleging fraudulent litigation and economic sabotage, citing Chapter 15 of the Penal Law.
Broader Implications
The legal standoff has raised broader concerns about judicial consistency, the enforcement of international arbitration in Liberia, and the potential misuse of the courts for corporate leverage.
Mutual stressed its commitment to “the rule of law and the sanctity of arbitral decisions,” warning that continued harassment through the courts undermines Liberia’s legal credibility and financial stability.
As the case unfolds, it is expected to test the limits of Liberia’s legal system in upholding foreign arbitration rulings and deterring legal overreach in high-stakes corporate disputes.
