Davies v Ford & Ors

Davies v Ford & Ors

Mr Monks breached his fiduciary duties as director of GBR by dishonestly diverting business opportunities and assets to GBRK for his own benefit, placing himself in a position of conflict, and failing to act in good faith to promote GBR's success. The breaches were fraudulent, so claims are not time-barred. GBRK is fixed with Mr Monks' knowledge for knowing receipt. Mr Davies is not barred by laches or lack of clean hands. Mr Monks is not entitled to relief under s.1157 Companies Act 2006. The scope of proprietary remedies and equitable allowance will be determined at a further trial.

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
Civil / Liability Trial
Outcome
Judgment for Claimant on liability issues; default judgment against First Defendant.
Legal Topics
Directors' Duties, Breach of Fiduciary Duty, Business Diversion, Constructive Trust, Limitation, Laches, Clean Hands, Equitable Allowance, Knowing Receipt
Company Law Equity Commercial Law Directors' Duties Breach of Fiduciary Duty Business Diversion Constructive Trust Limitation +4 more

Case Brief

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Parties

Kenneth Davies

Claimant

Stephen Ford

First Defendant

Richard Monks

Second Defendant

Greenbox Recycling Kent Limited

Third Defendant

Procedural Posture

Civil / 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 the business conducted by GBRK is derived from GBR

Ratio Decidendi

Mr Monks breached his fiduciary duties as director of GBR by dishonestly diverting business opportunities and assets to GBRK for his own benefit, placing himself in a position of conflict, and failing to act in good faith to promote GBR's success. The breaches were fraudulent, so claims are not time-barred. GBRK is fixed with Mr Monks' knowledge for knowing receipt. Mr Davies is not barred by laches or lack of clean hands. Mr Monks is not entitled to relief under s.1157 Companies Act 2006. The scope of proprietary remedies and equitable allowance will be determined at a further trial.

Court Disposition

Judgment for Claimant on liability issues; default judgment against First Defendant.

Orders

  • Judgment entered against Mr Monks and GBRK for breach of fiduciary duty and knowing receipt.
  • Default judgment entered against Mr Ford.