Category: fiduciary duty

Imposing Quistclose trusts—knowledge, not notice, as the golden rule (Goyal v Florence Care Ltd) – New Square Chambers

Posted April 2nd, 2020 in chambers articles, delay, equity, fiduciary duty, joint ventures, news, solicitors by sally

‘Goyal emphasises the importance of knowledge over notice in generating a Quistclose Trust. Solicitors and commercial fund managers should be alert to the possible implications arising from the allocation and management of communications received, mindful that attributed knowledge may still suffice in the right circumstances. Goyal provides an important reminder of the gateway function of an order for an account through which substantive remedies can be accessed. A party’s entitlement to an account following breach of fiduciary duty should not be circumscribed by judicial assumptions that little may be gained from the exercise, nor by considerations of the delay between relevant events and trial. An account may prove to be fruitless but a claimant should be entitled to find this out for themselves.’

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New Square Chambers, 23rd March 2020

Source: www.newsquarechambers.co.uk

Raiffeisen Bank International AG v Asia Coal Energy Ventures Ltd & Anor [2020] EWCA Civ 11 – Hardwicke Chambers

Posted March 20th, 2020 in appeals, banking, chambers articles, contracts, disclosure, fiduciary duty, news, privilege, solicitors by sally

‘The Appellant was a corporate and investment bank (the “Bank”). On 7 May 2015, it entered into a Sale and Purchase Agreement (the “Agreement”) as the seller of a 23.8% shareholding in an Indonesian company traded on the London Stock Exchange. The Respondent solicitors, (“Ashurst”), had acted for the First Defendant, the counterparty buyer under the Agreement (“ACE”).’

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Hardwicke Chambers, 5th March 2020

Source: hardwicke.co.uk

Fraudulent Non-Disclosure Claim in Property Joint Venture Case Fails – Littleton Chambers

Posted February 19th, 2020 in chambers articles, conspiracy, disclosure, fiduciary duty, fraud, joint ventures, news by sally

‘The claimant (Mr Russell) was one of four individuals involved in a joint venture property development business. The parties entered into a joint venture agreement which obliged them to act with good faith towards each other, in certain limited respects. Mr Russell departed the business pursuant to the terms of a settlement deed. Shortly after that deed was executed, the remaining parties entered into an attractive development project that Mr Russell claimed the other parties did not tell him about, or give him the opportunity to participate in. Mr Russell claimed he was wrongfully excluded by the dishonest actions of the other joint venturers. The claims alleged were: (a) breach of fiduciary duty; (b) breach of the express/implied terms of the joint venture agreement; (c) fraudulent non-disclosure; (d) unlawful means conspiracy. As a result of the terms of the settlement deed, Mr Russell needed to establish fraud or dishonesty to succeed.’

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Littleton Chambers, 13th February 2020

Source: www.littletonchambers.com

Push Payment Fraud: Singularis v Daiwa – Case Analysis – Forum Chambers

Posted November 19th, 2019 in banking, contracts, fiduciary duty, fraud, news by sally

‘In Barclays Bank plc v Quincecare Ltd [1992] 4 All ER, Steyn J held that it was an implied term of the contract between a bank and a customer that the bank would use reasonable care and skill in and about executing the customer’s order. This term would be breached if the bank executed the order knowing it to be dishonestly given, or shut its eyes to the obvious fact of the dishonesty, or acted recklessly in failing to make such enquiries as an honest and reasonable man would make. In order to comply with that term, the bank should refrain from executing a customer’s order if and for so long as it was put on inquiry by having reasonable grounds for believing that the order was an attempt to misappropriate funds.’

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Forum Chambers, 19th November 2019

Source: www.forumchambers.com

High Court backs former Claims Direct boss over £21m claim – Legal Futures

Posted September 4th, 2019 in breach of trust, claims management, fiduciary duty, fraud, news by sally

‘Colin Poole, the former chief executive of Claims Direct and a struck-off solicitor, has won a High Court battle with shareholders over an alleged £21m debt.’

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Legal Futrues, 4th September 2019

Source: www.legalfutures.co.uk

Court strikes out “incomprehensible” claim against law firm – Legal Futures

Posted August 1st, 2019 in fiduciary duty, fraud, law firms, negligence, news, professional conduct, Solicitors Regulation Authority, striking out by tracey

‘The High Court has struck out a claim for professional negligence, breach of contract and fiduciary duty made against a central London law firm which was based on “incomprehensible pleadings”.’

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Legal Futures, 1st August 2019

Source: www.legalfutures.co.uk

Diversion of a Business Opportunity: Recovery Partners & anor v Mr Rukhadze & ors [2018] EWHC 2918 (Comm) – Blackstone Chambers

Posted March 13th, 2019 in assets recovery, bereavement, company directors, company law, fiduciary duty, news, wills by sally

‘The High Court recently had reason to consider liability where individuals, who owe fiduciary duties to a company, divert for themselves a business opportunity.’

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Blackstone Chambers, 25th February 2019

Source: www.employeecompetition.com

Howard Grossman: Northampton Town ‘missing millions’ developer banned – BBC News

Posted February 5th, 2019 in accounts, company directors, fiduciary duty, insolvency, loans, news, sport by tracey

‘A property developer has been banned from running companies for 10 years after failing to provide accounting records to explain more than £5m missing from a football club loan.’

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BBC News, 5th February 2019

Source: www.bbc.co.uk

Letters to art experts not covered by litigation privilege – Litigation Futures

Posted November 27th, 2018 in artistic works, auctioneers, counterfeiting, disclosure, evidence, fiduciary duty, news, privilege, sale of goods by tracey

‘Letters between Sotheby’s and two art experts concerning the authenticity of an Old Master painting sold for over $11m are not covered by litigation privilege, the High Court has ruled.’

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Litigation Futures, 27th November 2018

Source: www.litigationfutures.com

Lord Briggs at the Denning Society Annual Lecture, Lincoln’s Inn – Supreme Court

Posted November 16th, 2018 in equity, estoppel, fiduciary duty, forfeiture, lectures, rectification, solicitors by tracey

‘Lord Briggs at the Denning Society Annual Lecture, Lincoln’s Inn.’

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Supreme Court, 8th November 2018

Source: www.supremecourt.uk

Help! Somebody has stolen my client list – Henderson Chambers

Posted August 9th, 2018 in confidentiality, copyright, database right, fiduciary duty, news, pleadings by sally

‘Companies can invest significant sums in the creation and maintenance of their client lists. Unsurprising, their client lists are often closely guarded. But what if protections fail? Under the Copyright and Rights in Databases Regulations 1997, firms can bring actions against those that access and download their client list (for instance, a former employee). The wronged party can demand the return or destruction of the confidential information, an injunction to prevent its use and damages for any losses.’

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Henderson Chambers, July 2018

Source: 3yf6pp3bqg8c3rycgf1gbn9w-wpengine.netdna-ssl.com

Judgment of the Court of Appeal in Lehtimäki v The Children’s Investment Fund Foundation (UK) and others [2018] EWCA Civ 1605 – Radcliffe Chambers

Posted August 6th, 2018 in charities, company law, fiduciary duty, news by sally

‘Mark Mullen appeared for HM Attorney General before the Court of Appeal in Lehtimäki v The Children’s Investment Fund Foundation (UK) and others [2018] EWCA Civ 1605.

In the claim, the claimant (‘CIFF’), a company limited by guarantee and a registered charity, sought approval of the making of a grant of $360 million to a new charity established by one of its directors.’

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Radcliffe Chambers, 6th July 2018

Source: www.radcliffechambers.com

Pair were shadow directors but didn’t breach duties, says court – OUT-LAW.com

Posted May 9th, 2018 in company directors, fiduciary duty, news by tracey

‘Two men were found to be shadow directors of an insolvent property development company and so did owe the company fiduciary duties but their behaviour did not breach those duties, the High Court has ruled.’

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OUT-LAW.com, 8th May 2018

Source: www.out-law.com

Supreme Court: use of corporate vehicles did not avoid limitation exception – OUT-LAW.com

Posted March 23rd, 2018 in company directors, fiduciary duty, insolvency, limitations, news, Supreme Court, third parties, trusts by tracey

‘Company directors were said to be responsible for assets despite their use of corporate vehicles, the Supreme Court has ruled (12-page / 157KB PDF). The ruling means that a six year limitation period stopping liquidators taking legal action against the directors does not apply. This case will impact future misfeasance actions. Director and officer indemnity insurers should take note of this decision as it confirms that the English courts are unwilling to accept the six-year limitation defence for actions against directors following the disposal of company assets in breach of fiduciary duty for economic gain.’

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OUT-LAW.com, 23rd March 2018

Source: www.out-law.com

Collection of fees in receivables finance agreement must not be “arbitrary, capricious or irrational” says High Court – OUT-LAW.com

Posted August 2nd, 2017 in banking, Cayman Islands, fees, fiduciary duty, indemnities, news, receivers by tracey

‘The High Court has found that a lender must be rational when exercising its contractual discretion to charge collection fees under a receivables finance agreement. The agreement allowed for fees of up to 15%, however, the maximum chargeable for the lender to remain compliant with its duty was found, in this case, to be 4%.’

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OUT-LAW.com, 1st august 2017

Source: www.out-law.com

Liability of trustees in bankruptcy: important new Court of Appeal case – 4 New Square

Posted June 9th, 2017 in bankruptcy, fiduciary duty, judgments, news, trustees in bankruptcy by sally

‘The liability of trustees in bankruptcy to bankrupts is a curiously under – developed area of law. There has been a lack of clarity the circumstances in which a trustee can be liable to a bankrupt personally (rather than liable for losses to the bankrupt’s estate). However, this issue came before the Court of Appeal last month (judgment handed down 25 May 2017).’

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4 New Square, 8th June 2017

Source: www.4newsquare.com

Ukip threatened with legal action if Woolfe stood for leader – The Guardian

Posted August 15th, 2016 in elections, electronic mail, fiduciary duty, news, political parties, time limits by sally

‘UKIP’s leadership contest has been thrown into fresh controversy as a leaked email reveals that the party was threatened with legal action by two of the candidates if frontrunner Steven Woolfe were allowed to stand.’

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The Guardian, 13th August 2016

Source: www.guardian.co.uk

Fiduciary Duties, Football, and the Fundamental Importance of the Contractual Relationship – Sports Law Bulletin

Posted June 9th, 2016 in contract of employment, employment, fiduciary duty, news, professional conduct, remuneration, sport, wrongful dismissal by sally

‘Can a senior employee be ordered to pay back his past contractual remuneration to his employer as a remedy for breach of fiduciary duty, in particular a duty to confess his own wrongdoing? There has been an increasing trend over the past few years for employers, outraged at the belatedly discovered wrongdoing of a trusted senior employee, to not only seek to justify summary dismissal on the basis of after-discovered gross misconduct but also to go a step further and try to recover the salaries or bonuses already paid to the employee prior to discovery of the misconduct.’

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Sports Law Bulletin, 7th June 2016

Source: www.sportslawbulletin.org

Pursuing damages for bribery in the civil courts – OUT-LAW.com

Posted February 17th, 2016 in bribery, civil justice, damages, disclosure, fiduciary duty, fraud, news, search & seizure, Supreme Court, victims by michael

‘Under the 2010 Bribery Act, bribery is a criminal offence and companies are required to have in place adequate procedures in order to prevent those associated with them from undertaking bribery. Adequate procedures provide the company with a defence to the criminal offences set out in the Act. However, what is often overlooked is the ability of the company to pursue both the recipient of the bribe as well as the briber for its financial losses and, in some cases, damages for fraud.’

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OUT-LAW.com, 16 February 2016

Source: www.out-law.com

Compensation Fund could pay the price after High Court buy-to-let ruling – Legal Futures

Posted November 7th, 2014 in compensation, conveyancing, disciplinary procedures, disclosure, fiduciary duty, news, solicitors by tracey

‘The Solicitors Compensation Fund could be hit by a new wave of property claims after a High Court ruling on two test cases relating to a buy-to-let scheme.’

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Legal Futures, 7th November 2014

Source: www.legalfutures.co.uk