Chassy v Left Shift IT Ltd & Ors [2025] EWHC 225 (KB) (04 February 2025)

Chassy v Left Shift IT Ltd & Ors [2025] EWHC 225 (KB) (04 February 2025)

The First Defendant is liable for unpaid salary, pension contributions, expenses, and holiday pay due to the Claimant and the Assignors under contract and statute. The assignments of claims were valid. The Second and Third Defendants, as directors, are personally and jointly liable for inducing the breaches of contract by the First Defendant, having acted in breach of their Companies Act duties and not in good faith. The Defendants' arguments of waiver, estoppel, or variation fail on the facts and law. The set-off/counterclaim based on alleged misconduct by the Claimant is not made out.

Citation
[2025] EWHC 225 (KB)
Parties
Claimant: Mark Chassy; First Defendant: Left Shift IT Limited; Second Defendant: David Silverstone; Third Defendant: Mark Smith
Jurisdiction
England and Wales
Judgment Date
04 February 2025
Procedural Posture
High Court Civil Claim (breach of Contract, Employment) / Judgment After Trial
Outcome
Judgment for the Claimant against all Defendants, jointly and severally (subject to bankruptcy enforcement restrictions for the Third Defendant).
Legal Topics
Breach of Contract, Unpaid Wages, Pension Contributions, Holiday Pay, Director Liability, TUPE Transfer, Constructive Dismissal, Assignment of Claims, Set Off and Estoppel, Personal Liability for Inducing Breach
Employment Law Contract Law Company Law Breach of Contract Unpaid Wages Pension Contributions Holiday Pay Director Liability +5 more

Case Brief

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Parties

Mark Chassy

Claimant

Left Shift IT Limited

First Defendant

David Silverstone

Second Defendant

Mark Smith

Third Defendant

Procedural Posture

High Court Civil Claim (breach of Contract, Employment) / Judgment After Trial

Legal Issues

  1. 1 What sums were due and unpaid to the Former Employees under their contracts and/or statute?
  2. 2 Were the claims of the Assignors validly assigned to the Claimant?
  3. 3 Did the Former Employees waive or vary their rights to payment, or are Defendants entitled to rely on estoppel?

Ratio Decidendi

The First Defendant is liable for unpaid salary, pension contributions, expenses, and holiday pay due to the Claimant and the Assignors under contract and statute. The assignments of claims were valid. The Second and Third Defendants, as directors, are personally and jointly liable for inducing the breaches of contract by the First Defendant, having acted in breach of their Companies Act duties and not in good faith. The Defendants' arguments of waiver, estoppel, or variation fail on the facts and law. The set-off/counterclaim based on alleged misconduct by the Claimant is not made out.

Court Disposition

Judgment for the Claimant against all Defendants, jointly and severally (subject to bankruptcy enforcement restrictions for the Third Defendant).

Orders

  • Defendants to pay the Claimant £311,601.91 in damages for unpaid salary, pension, expenses, and holiday pay.
  • Statutory interest to be paid pursuant to section 35A Senior Courts Act 1981.