Glen Dimplex Home Applicances Ltd v Smith & Ors

Glen Dimplex Home Applicances Ltd v Smith & Ors

Summary judgment is granted against Mr Smith for dishonest assistance and knowing receipt as he must have known of Mrs Smith's fraud and deliberately failed to inquire, amounting to dishonesty. Summary judgment is refused against Mrs Lewis on dishonest assistance/knowing receipt as her knowledge is not sufficiently established. Summary judgment is granted against Mr and Mrs Lewis on the tracing claim; Twr Gwyn is held on trust for the Claimant as it was purchased entirely with misappropriated funds and no valid consideration or change of position defence is established.

Parties
Claimant: Glen Dimplex Home Appliances Limited; First Defendant: Shelagh Ann Smith; Second Defendant: Roy Smith; Third Defendant: Karen Lewis; Fourth Defendant: Kane Calvin Lewis; Fifth Defendant: Paul Anthony Smith; Sixth Defendant: Paul Edward Smith; Seventh Defendant: Joanna Marie Kay; Eighth Defendant: Paul Kay
Jurisdiction
England and Wales
Judgment Date
20 December 2011
Procedural Posture
Civil (commercial/fraud/trusts) / Summary Judgment Application
Outcome
Summary judgment granted in part, refused in part
Legal Topics
Dishonest Assistance, Knowing Receipt, Constructive Trust, Tracing, Unjust Enrichment, Breach of Fiduciary Duty, Fraud
Civil Law Trusts Law Commercial Law Dishonest Assistance Knowing Receipt Constructive Trust Tracing Unjust Enrichment +2 more

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Parties

Glen Dimplex Home Appliances Limited

Claimant

Shelagh Ann Smith

First Defendant

Roy Smith

Second Defendant

Karen Lewis

Third Defendant

Kane Calvin Lewis

Fourth Defendant

Paul Anthony Smith

Fifth Defendant

Paul Edward Smith

Sixth Defendant

Joanna Marie Kay

Seventh Defendant

Paul Kay

Eighth Defendant

Procedural Posture

Civil (commercial/fraud/trusts) / Summary Judgment Application

Legal Issues

  1. 1 Whether Mr Smith and Mrs Lewis dishonestly assisted Mrs Smith's breach of trust or received misappropriated funds with sufficient knowledge to be liable for knowing receipt
  2. 2 Whether Twr Gwyn property is held on trust for the Claimant via tracing of misappropriated funds

Ratio Decidendi

Summary judgment is granted against Mr Smith for dishonest assistance and knowing receipt as he must have known of Mrs Smith's fraud and deliberately failed to inquire, amounting to dishonesty. Summary judgment is refused against Mrs Lewis on dishonest assistance/knowing receipt as her knowledge is not sufficiently established. Summary judgment is granted against Mr and Mrs Lewis on the tracing claim; Twr Gwyn is held on trust for the Claimant as it was purchased entirely with misappropriated funds and no valid consideration or change of position defence is established.

Court Disposition

Summary judgment granted in part, refused in part

Orders

  • Summary judgment against Mr Smith for dishonest assistance and knowing receipt in relation to joint accounts; remedies to be determined.
  • Summary judgment refused against Mrs Lewis on dishonest assistance/knowing receipt; to proceed to trial.