Medsted Associates Ltd v Canaccord Genuity Wealth (International) Ltd [2019] EWCA Civ 83 (06 February 2019)

Medsted Associates Ltd v Canaccord Genuity Wealth (International) Ltd [2019] EWCA Civ 83 (06 February 2019)

Medsted was not under a duty to disclose the exact amount of commission received from Collins Stewart to its clients; therefore, Medsted did not breach fiduciary duty and public policy does not bar damages for Collins Stewart's breach of contract. Damages should be assessed.

Citation
[2019] EWCA Civ 83
Parties
Appellant/claimant: Medsted Associates Limited; Respondent/defendant: Canaccord Genuity Wealth (International) Limited
Jurisdiction
England and Wales
Judgment Date
06 February 2019
Procedural Posture
Appeal From High Court (commercial Court) / Court of Appeal Judgment
Outcome
Appeal allowed; damages to be assessed.
Legal Topics
Breach of Contract, Non Circumvention Agreement, Secret Commissions, Fiduciary Duties, Damages Assessment, Public Policy
Commercial Law Contract Law Fiduciary Law Breach of Contract Non Circumvention Agreement Secret Commissions Fiduciary Duties Damages Assessment +1 more

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Parties

Medsted Associates Limited

Appellant/claimant

Canaccord Genuity Wealth (International) Limited

Respondent/defendant

Procedural Posture

Appeal From High Court (commercial Court) / Court of Appeal Judgment

Legal Issues

  1. 1 Whether Medsted owed fiduciary duties to introduced clients
  2. 2 Whether Medsted breached fiduciary duties by failing to disclose commission split
  3. 3 Whether public policy bars damages for breach of contract due to alleged secret commissions

Ratio Decidendi

Medsted was not under a duty to disclose the exact amount of commission received from Collins Stewart to its clients; therefore, Medsted did not breach fiduciary duty and public policy does not bar damages for Collins Stewart's breach of contract. Damages should be assessed.

Court Disposition

Appeal allowed; damages to be assessed.

Orders

  • Judgment for Claimant on liability; damages to be assessed for trading with specified clients.
  • Defendant to pay 75% of Claimant's costs of liability proceedings, assessed on standard basis.