L & S Accounting Firm Umbrella Ltd v Oronsaye & Ors [2024] EWHC 1919 (Ch) (26 July 2024)

L & S Accounting Firm Umbrella Ltd v Oronsaye & Ors [2024] EWHC 1919 (Ch) (26 July 2024)

The defendants have no real prospect of successfully defending the claims for breach of fiduciary and statutory duties, knowing receipt, and dishonest assistance. The evidence overwhelmingly demonstrates deliberate and sustained misapplication of company funds, failure to account for VAT and PAYE/NICs, and diversion of assets to the defendants and their companies. The explanations and purported evidence offered by the defendants are inconsistent, unsupported, and in some instances fabricated. There is no compelling reason for a trial. Summary judgment is granted in the sums claimed, with proprietary and freezing injunctions continued.

Citation
[2024] EWHC 1919 (Ch)
Parties
Claimant: L & S Accounting Firm Umbrella Limited (In liquidation); First Defendant: Idusogie Laurel Oronsaye (also known as Laurel Stephen and Laurel Oronsaye); Second Defendant: Stephen Taiwo Oronsaye; Third Defendant: L & S Financials Limited; Fourth Defendant: L & S Accounting Firm Limited; Fifth Defendant: Mimshach Management Services Limited
Jurisdiction
England and Wales
Judgment Date
26 July 2024
Procedural Posture
Civil (chancery Division, Business List) / Summary Judgment Application
Outcome
Summary judgment granted for the claimant against all defendants.
Legal Topics
Directors' Duties, Knowing Receipt, Dishonest Assistance, Labour Supply Fraud, VAT Fraud, Paye/nics Fraud, Summary Judgment, Freezing Injunctions
Company Law Insolvency Fraud Equity and Trusts Directors' Duties Knowing Receipt Dishonest Assistance Labour Supply Fraud +4 more

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Parties

L & S Accounting Firm Umbrella Limited (In liquidation)

Claimant

Idusogie Laurel Oronsaye (also known as Laurel Stephen and Laurel Oronsaye)

First Defendant

Stephen Taiwo Oronsaye

Second Defendant

L & S Financials Limited

Third Defendant

L & S Accounting Firm Limited

Fourth Defendant

Mimshach Management Services Limited

Fifth Defendant

Procedural Posture

Civil (chancery Division, Business List) / Summary Judgment Application

Legal Issues

  1. 1 Whether the defendants have any real prospect of successfully defending claims for breach of fiduciary and statutory duties, knowing receipt, and dishonest assistance
  2. 2 Whether summary judgment should be granted against the defendants for misapplication of company funds and perpetration of VAT and PAYE/NICs fraud
  3. 3 Whether proprietary and freezing injunctions should be continued

Ratio Decidendi

The defendants have no real prospect of successfully defending the claims for breach of fiduciary and statutory duties, knowing receipt, and dishonest assistance. The evidence overwhelmingly demonstrates deliberate and sustained misapplication of company funds, failure to account for VAT and PAYE/NICs, and diversion of assets to the defendants and their companies. The explanations and purported evidence offered by the defendants are inconsistent, unsupported, and in some instances fabricated. There is no compelling reason for a trial. Summary judgment is granted in the sums claimed, with proprietary and freezing injunctions continued.

Court Disposition

Summary judgment granted for the claimant against all defendants.

Orders

  • Defendants to pay £19,487,016.67 (or £17,480,462.67 in the alternative) to the claimant, subject to credits for sums already recovered and net sale proceeds of specified properties.
  • Declarations that properties at 1 Tyne Crescent, 1 Hazelwood Road, and 1 Brereton Road, Bedford, and Salamander House are held on trust for the claimant to the extent of company funds used in their purchase.