Interactive Technology Corporation Ltd v Ferster [2017] EWHC 1799 (Ch) (14 July 2017)

Interactive Technology Corporation Ltd v Ferster [2017] EWHC 1799 (Ch) (14 July 2017)

The court held that the issue of causation in the assessment of equitable compensation for breach of fiduciary duty remains arguable and cannot be determined summarily. The authorities do not preclude an inquiry into causation where the remedy sought is compensation for losses resulting from unauthorised...

Source-derived case information.

Citation
[2017] EWHC 1799 (Ch)
Parties
Claimant: Interactive Technology Corporation Limited; First Defendant: Jonathan Ferster
Jurisdiction
England and Wales
Judgment Date
14 July 2017
Procedural Posture
Civil (chancery Division) / Application for Summary Judgment and Interim Payment Post Liability Trial, Pre Quantum Assessment
Outcome
Applications dismissed
Legal Topics
Breach of Fiduciary Duty, Equitable Compensation, Summary Judgment, Causation in Equitable Remedies, Remedies for Unauthorised Remuneration
Equity Company Law Breach of Fiduciary Duty Equitable Compensation Summary Judgment Causation in Equitable Remedies Remedies for Unauthorised Remuneration

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Parties

Interactive Technology Corporation Limited

Claimant

Jonathan Ferster

First Defendant

Procedural Posture

Civil (chancery Division) / Application for Summary Judgment and Interim Payment Post Liability Trial, Pre Quantum Assessment

Legal Issues

  1. 1 Whether the defendant has a viable defence of causation to a claim for equitable compensation for unauthorised remuneration
  2. 2 Whether summary judgment should be granted on the issue of causation in equitable compensation
  3. 3 Whether the defendant may seek a just allowance in answer to the claim

Ratio Decidendi

The court held that the issue of causation in the assessment of equitable compensation for breach of fiduciary duty remains arguable and cannot be determined summarily. The authorities do not preclude an inquiry into causation where the remedy sought is compensation for losses resulting from unauthorised remuneration. Summary judgment is refused as the law is not settled and factual issues may arise.

Court Disposition

Applications dismissed

Orders

  • Application for summary judgment dismissed
  • Application for interim payment dismissed