Davies v Ford & Ors [2020] EWHC 686 (Ch) (24 March 2020)

Davies v Ford & Ors [2020] EWHC 686 (Ch) (24 March 2020)

Mr Monks breached fiduciary duties owed to GBR by diverting the business to GBRK without proper authority, and GBRK's business is derived from GBR. Claims are not time-barred due to the operation of s.21 Limitation Act 1980 and s.1032 Companies Act 2006. Mr Monks is not entitled to relief under s.1157 Companies Act 2006. Mr Davies is not barred by laches or lack of clean hands. Default judgment is granted against Mr Ford.

Citation
[2020] EWHC 686 (Ch)
Parties
Claimant: Kenneth Davies; First Defendant: Stephen Ford; Second Defendant: Richard Monks; Third Defendant: Greenbox Recycling Kent Limited
Jurisdiction
England and Wales
Judgment Date
24 March 2020
Procedural Posture
Chancery Division, High Court, Business and Property Courts / Liability Trial
Outcome
Liability established against Mr Monks and GBRK; default judgment granted against Mr Ford.
Legal Topics
Directors' Duties, Breach of Fiduciary Duty, Knowing Receipt, Constructive Trust, Limitation, Laches, Clean Hands, Equitable Allowance, Default Judgment
Company Law Equity Insolvency Directors' Duties Breach of Fiduciary Duty Knowing Receipt Constructive Trust Limitation +4 more

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Parties

Kenneth Davies

Claimant

Stephen Ford

First Defendant

Richard Monks

Second Defendant

Greenbox Recycling Kent Limited

Third Defendant

Procedural Posture

Chancery Division, High Court, Business and Property Courts / Liability Trial

Legal Issues

  1. 1 Whether Mr Monks acted in breach of duty or contract
  2. 2 Whether GBRK is fixed with relevant knowledge for knowing receipt
  3. 3 Whether GBRK's business is derived from GBR

Ratio Decidendi

Mr Monks breached fiduciary duties owed to GBR by diverting the business to GBRK without proper authority, and GBRK's business is derived from GBR. Claims are not time-barred due to the operation of s.21 Limitation Act 1980 and s.1032 Companies Act 2006. Mr Monks is not entitled to relief under s.1157 Companies Act 2006. Mr Davies is not barred by laches or lack of clean hands. Default judgment is granted against Mr Ford.

Court Disposition

Liability established against Mr Monks and GBRK; default judgment granted against Mr Ford.

Orders

  • Default judgment against Mr Ford
  • Declaration that Mr Monks breached fiduciary duties