Simtel Communications Ltd v Rebak & Ors

Simtel Communications Ltd v Rebak & Ors

The Defendants, in particular Mr Rebak and Mr Chan, breached their fiduciary and contractual duties to Simtel by mismanaging company affairs, misappropriating assets, setting up and operating a competing business, diverting business opportunities, and destroying or transferring company data. These acts were carried out in concert with Telec Limited and amounted to an unlawful means conspiracy to injure Simtel. Telec is jointly liable as a participant in the conspiracy. The Claimant is entitled to judgment on liability, with quantum to be assessed.

Parties
Claimant: Simtel Communications Limited; First Defendant: Peter Daniel Rebak; Second Defendant: Telec Limited; Third Defendant: Chwee Tian Chan (also known as Larry Chan)
Jurisdiction
England and Wales
Judgment Date
22 March 2006
Procedural Posture
Civil / Judgment After Trial on Liability
Outcome
Judgment for the Claimant on liability; quantum and precise relief to be determined after further submissions.
Legal Topics
Directors' Fiduciary Duties, Breach of Contract, Conspiracy, Misappropriation of Company Assets, Destruction of Company Data
Company Law Employment Law Tort Law Directors' Fiduciary Duties Breach of Contract Conspiracy Misappropriation of Company Assets Destruction of Company Data

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Parties

Simtel Communications Limited

Claimant

Peter Daniel Rebak

First Defendant

Telec Limited

Second Defendant

Chwee Tian Chan (also known as Larry Chan)

Third Defendant

Procedural Posture

Civil / Judgment After Trial on Liability

Legal Issues

  1. 1 Whether Mr Rebak and Mr Chan breached fiduciary and contractual duties to Simtel
  2. 2 Whether the Defendants conspired to injure Simtel by unlawful means
  3. 3 Whether company assets and business opportunities were misappropriated or diverted

Ratio Decidendi

The Defendants, in particular Mr Rebak and Mr Chan, breached their fiduciary and contractual duties to Simtel by mismanaging company affairs, misappropriating assets, setting up and operating a competing business, diverting business opportunities, and destroying or transferring company data. These acts were carried out in concert with Telec Limited and amounted to an unlawful means conspiracy to injure Simtel. Telec is jointly liable as a participant in the conspiracy. The Claimant is entitled to judgment on liability, with quantum to be assessed.

Court Disposition

Judgment for the Claimant on liability; quantum and precise relief to be determined after further submissions.