Glen Dimplex Home Applicances Ltd v Smith & Ors [2011] EWHC 3392 (Comm) (20 December 2011)

Glen Dimplex Home Applicances Ltd v Smith & Ors [2011] EWHC 3392 (Comm) (20 December 2011)

Summary judgment is granted against Mr Smith for dishonest assistance and knowing receipt, as he must have known or deliberately avoided knowing about Mrs Smith's fraud given the scale of spending and his involvement in financial transactions. Summary judgment is refused against Mrs Lewis on dishonest assistance/knowing receipt due to insufficient evidence of her knowledge. 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 traceable proceeds of the fraud and no valid consideration was given.

Citation
[2011] EWHC 3392 (Comm)
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
Commercial Court Civil Claim / Summary Judgment Application
Outcome
Summary judgment granted in part
Legal Topics
Dishonest Assistance, Knowing Receipt, Constructive Trust, Tracing, Unjust Enrichment, Breach of Fiduciary Duty, Summary Judgment
Civil Fraud Trusts Restitution Property Law Dishonest Assistance Knowing Receipt Constructive Trust Tracing +3 more

Case Brief

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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

Commercial Court Civil Claim / Summary Judgment Application

Legal Issues

  1. 1 Whether Mr Smith and Mrs Lewis dishonestly assisted or knowingly received misappropriated funds from Mrs Smith's fraud
  2. 2 Whether Mr and Mrs Lewis hold Twr Gwyn on constructive or resulting trust for the Claimant via tracing
  3. 3 Whether summary judgment is appropriate on the claims

Ratio Decidendi

Summary judgment is granted against Mr Smith for dishonest assistance and knowing receipt, as he must have known or deliberately avoided knowing about Mrs Smith's fraud given the scale of spending and his involvement in financial transactions. Summary judgment is refused against Mrs Lewis on dishonest assistance/knowing receipt due to insufficient evidence of her knowledge. 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 traceable proceeds of the fraud and no valid consideration was given.

Court Disposition

Summary judgment granted in part

Orders

  • Summary judgment for the Claimant against Mr Smith for dishonest assistance and knowing receipt in relation to the joint accounts; remedies to be determined.
  • Summary judgment for the Claimant against Mr and Mrs Lewis on the tracing claim; Twr Gwyn declared held on trust for the Claimant.