Ensign House Limited v Ensign House (FEC) Limited & Ors

Ensign House Limited v Ensign House (FEC) Limited & Ors

The Defendants, in particular FEC UK, EHFL, Mr Connolly, and Mr Alford, were found liable for breach of contract (NDA), misuse of confidential information, and conspiracy. Mr Alford was found to owe and breach fiduciary duties to the Claimant. The Court awarded damages of £2 million, representing a reasonable release fee for the Claimant's position, but declined to order an account of profits against the corporate Defendants. The Court found no liability for dishonest assistance or procuring breach of contract against Mr Connolly, EHFL, or FEC UK, as the requisite knowledge or intent was not established.

Parties
Claimant: Ensign House Limited; First Defendant: Ensign House (FEC) Limited; Second Defendant: FEC Development Management Limited; Third Defendant: John Connolly; Fourth Defendant: Terence Alford
Jurisdiction
England and Wales
Judgment Date
11 September 2024
Procedural Posture
Civil (commercial, Property, Trusts) / High Court Judgment (final)
Outcome
Claim allowed in part. Judgment for the Claimant against all Defendants for damages of £2 million (joint and several), and an account of profits against Mr Alford for £803,009. Claims for dishonest assistance and procuring breach of contract dismissed.
Legal Topics
Breach of Contract, Breach of Confidence, Fiduciary Duty, Dishonest Assistance, Economic Torts, Conspiracy, Damages, Account of Profits, Confidential Information, Property Development, Non Disclosure Agreements

Case Brief

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Parties

Ensign House Limited

Claimant

Ensign House (FEC) Limited

First Defendant

FEC Development Management Limited

Second Defendant

John Connolly

Third Defendant

Terence Alford

Fourth Defendant

Procedural Posture

Civil (commercial, Property, Trusts) / High Court Judgment (final)

  1. 1 Whether the Defendants breached a non-disclosure agreement (NDA) and misused confidential information.
  2. 2 Whether Mr Alford owed and breached fiduciary duties to the Claimant.
  3. 3 Whether Mr Connolly and others dishonestly assisted or procured breaches of fiduciary duty or contract.

Ratio Decidendi

The Defendants, in particular FEC UK, EHFL, Mr Connolly, and Mr Alford, were found liable for breach of contract (NDA), misuse of confidential information, and conspiracy. Mr Alford was found to owe and breach fiduciary duties to the Claimant. The Court awarded damages of £2 million, representing a reasonable release fee for the Claimant's position, but declined to order an account of profits against the corporate Defendants. The Court found no liability for dishonest assistance or procuring breach of contract against Mr Connolly, EHFL, or FEC UK, as the requisite knowledge or intent was not established.

Court Disposition

Claim allowed in part. Judgment for the Claimant against all Defendants for damages of £2 million (joint and several), and an account of profits against Mr Alford for £803,009. Claims for dishonest assistance and procuring breach of contract dismissed.

Orders

  • Defendants to pay the Claimant £2,000,000 in damages, jointly and severally.
  • Mr Alford to account to the Claimant for £803,009 received as a fee from FEC UK/EHFL.