Davies v Ford & Ors [2023] EWCA Civ 167 (17 February 2023)

Davies v Ford & Ors [2023] EWCA Civ 167 (17 February 2023)

The Court of Appeal upheld the Quantum Judge's findings that Mr Monks' breaches of duty were limited to the seven matters listed in the Liability Judgment, that equitable compensation was to be assessed on a reparative basis as of October 2011, and that GBRK's liability in knowing receipt was restricted to receipt of pre-existing trust property. The allowance of £30,000 to Mr Monks was justified based on market rate for services. Proprietary remedies and account of profits against GBRK were refused due to lack of causative link and risk of double recovery.

Citation
[2023] EWCA Civ 167
Parties
Claimant/appellant: Kenneth Davies; Defendant/respondent: Stephen Ford; Defendant/respondent: Richard Monks; Defendant/respondent: Greenbox Recycling Kent Limited
Jurisdiction
England and Wales
Judgment Date
17 February 2023
Procedural Posture
Appeal / Court of Appeal Judgment
Outcome
Appeal dismissed
Legal Topics
Directors' Duties, Breach of Fiduciary Duty, Knowing Receipt, Equitable Compensation, Constructive Trust, Limitation, Equitable Allowance
Company Law Equity Insolvency Directors' Duties Breach of Fiduciary Duty Knowing Receipt Equitable Compensation Constructive Trust +2 more

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Parties

Kenneth Davies

Claimant/appellant

Stephen Ford

Defendant/respondent

Richard Monks

Defendant/respondent

Greenbox Recycling Kent Limited

Defendant/respondent

Procedural Posture

Appeal / Court of Appeal Judgment

Legal Issues

  1. 1 Whether Mr Monks breached fiduciary duties as director of GBR
  2. 2 Scope of equitable compensation for breach of duty
  3. 3 Liability of GBRK in knowing receipt

Ratio Decidendi

The Court of Appeal upheld the Quantum Judge's findings that Mr Monks' breaches of duty were limited to the seven matters listed in the Liability Judgment, that equitable compensation was to be assessed on a reparative basis as of October 2011, and that GBRK's liability in knowing receipt was restricted to receipt of pre-existing trust property. The allowance of £30,000 to Mr Monks was justified based on market rate for services. Proprietary remedies and account of profits against GBRK were refused due to lack of causative link and risk of double recovery.

Court Disposition

Appeal dismissed

Orders

  • Quantum Order affirmed
  • Equitable compensation of £599,315 plus interest payable by Mr Monks to Mr Davies