Coyne v Walsh & Ors [2019] EWHC 3725 (Ch) (5 December 2019)

Coyne v Walsh & Ors [2019] EWHC 3725 (Ch) (5 December 2019)

Permission is granted for Mrs Coyne to continue the derivative claim against Mr Walsh and Ms Wetton because the claims are inextricably linked, the applicant is acting in good faith, and a derivative claim is the most appropriate and efficient remedy. An indemnity for costs is granted up to the first costs and case management hearing.

Citation
[2019] EWHC 3725 (Ch)
Parties
Claimant: Mrs Anne Marie Coyne; First Defendant: Mr Michael Francis Walsh; Second Defendant: MFW Developments Limited; Proposed Third Defendant: Ms Naomi Wetton
Jurisdiction
England and Wales
Judgment Date
05 December 2019
Procedural Posture
Derivative Claim Application / Permission Hearing
Outcome
Permission granted for derivative claim to proceed; costs indemnity awarded up to first costs and case management hearing.
Legal Topics
Derivative Claims, Directors' Duties, Misappropriation of Assets, Costs Indemnity, Unfair Prejudice, Joinder of Parties
Company Law Derivative Claims Directors' Duties Misappropriation of Assets Costs Indemnity Unfair Prejudice Joinder of Parties

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Parties

Mrs Anne Marie Coyne

Claimant

Mr Michael Francis Walsh

First Defendant

MFW Developments Limited

Second Defendant

Ms Naomi Wetton

Proposed Third Defendant

Procedural Posture

Derivative Claim Application / Permission Hearing

Legal Issues

  1. 1 Whether permission should be granted to continue a derivative claim against Mr Walsh and Ms Wetton on behalf of MFW Developments Limited
  2. 2 Whether an unfair prejudice petition under Section 994 Companies Act 2006 is a more appropriate remedy
  3. 3 Whether a costs indemnity should be granted to the applicant

Ratio Decidendi

Permission is granted for Mrs Coyne to continue the derivative claim against Mr Walsh and Ms Wetton because the claims are inextricably linked, the applicant is acting in good faith, and a derivative claim is the most appropriate and efficient remedy. An indemnity for costs is granted up to the first costs and case management hearing.

Court Disposition

Permission granted for derivative claim to proceed; costs indemnity awarded up to first costs and case management hearing.

Orders

  • Permission for Mrs Coyne to continue the derivative claim against Mr Walsh and Ms Wetton on behalf of MFW Developments Limited.
  • Ms Wetton to be joined as a defendant to the derivative claim.