Medsted Associates Ltd v Canaccord Genuity Wealth (International) Ltd

Medsted Associates Ltd v Canaccord Genuity Wealth (International) Ltd

Medsted did not breach any fiduciary duty to the investors by failing to disclose the precise commission amounts, as the investors knew Medsted was being paid by Collins Stewart and were sophisticated parties. Therefore, public policy does not bar Medsted from recovering damages for Collins Stewart’s breach of contract. The judge’s award of only nominal damages was wrong; damages should be assessed.

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

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Parties

Medsted Associates Limited

Appellant/claimant

Canaccord Genuity Wealth (International) Limited

Respondent/defendant

Procedural Posture

Civil Appeal / Appeal From High Court (commercial Court) Decision After Trial

Legal Issues

  1. 1 Whether Medsted owed fiduciary duties to the investors it introduced
  2. 2 Whether Medsted breached any fiduciary duty by failing to disclose commission amounts
  3. 3 Whether Medsted was entitled to substantial damages for Collins Stewart's breach of contract

Ratio Decidendi

Medsted did not breach any fiduciary duty to the investors by failing to disclose the precise commission amounts, as the investors knew Medsted was being paid by Collins Stewart and were sophisticated parties. Therefore, public policy does not bar Medsted from recovering damages for Collins Stewart’s breach of contract. The judge’s award of only nominal damages was wrong; damages should be assessed.

Court Disposition

Appeal allowed. Damages to be assessed.

Orders

  • Order for damages to be assessed in favour of Medsted Associates Limited.
  • No order on ground (4) of the appeal.