Aston Risk Management Ltd v Jones & Ors (Quantum) [2024] EWHC 252 (Ch) (09 February 2024)

Aston Risk Management Ltd v Jones & Ors (Quantum) [2024] EWHC 252 (Ch) (09 February 2024)

The quantum of equitable compensation is determined by assessing, with hindsight, the actual losses suffered by ASS as a result of Mr Jones's breaches of fiduciary duty, including unjustified payments, the lost value of the business and undertaking, and administration/liquidation costs, applying the principles from Target Holdings and AIB Group. The claimant is entitled to be put in the position ASS would have been in but for the breaches, and the expert evidence of Mr Fairhurst is accepted as reliable for quantification.

Citation
[2024] EWHC 252 (Ch)
Parties
Claimant: Aston Risk Management Ltd; First Defendant: Mr Lee Jones; Second Defendant: Mr Richard Kilburn; Third Defendant: Mr Clinton Jones; Fourth Defendant: Professor Mark Lutman; Fifth Defendant: Neutrino Network Ltd; Sixth Defendant: Cumulo Accountancy and Taxation Ltd
Jurisdiction
England and Wales
Judgment Date
09 February 2024
Procedural Posture
Chancery (business List) / Quantum Determination Following Liability Judgment
Outcome
Judgment for the claimant on quantum; equitable compensation awarded.
Legal Topics
Equitable Compensation, Breach of Fiduciary Duty, Constructive Trust, Phoenix Company, Valuation of Business, Administration and Liquidation Costs
Equity Company Law Trusts Equitable Compensation Breach of Fiduciary Duty Constructive Trust Phoenix Company Valuation of Business +1 more

Case Brief

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Parties

Aston Risk Management Ltd

Claimant

Mr Lee Jones

First Defendant

Mr Richard Kilburn

Second Defendant

Mr Clinton Jones

Third Defendant

Professor Mark Lutman

Fourth Defendant

Neutrino Network Ltd

Fifth Defendant

Cumulo Accountancy and Taxation Ltd

Sixth Defendant

Procedural Posture

Chancery (business List) / Quantum Determination Following Liability Judgment

Legal Issues

  1. 1 What is the quantum of equitable compensation payable for breach of fiduciary duty in relation to misapplied payments and transfer of business assets?
  2. 2 Is the claimant entitled to recover the value of the business and undertaking, outstanding work in progress, and administration/liquidation costs as equitable compensation?

Ratio Decidendi

The quantum of equitable compensation is determined by assessing, with hindsight, the actual losses suffered by ASS as a result of Mr Jones's breaches of fiduciary duty, including unjustified payments, the lost value of the business and undertaking, and administration/liquidation costs, applying the principles from Target Holdings and AIB Group. The claimant is entitled to be put in the position ASS would have been in but for the breaches, and the expert evidence of Mr Fairhurst is accepted as reliable for quantification.

Court Disposition

Judgment for the claimant on quantum; equitable compensation awarded.

Orders

  • Mr Jones is to pay equitable compensation to ARM for breach of fiduciary duty in respect of unjustified payments and transfer of business.
  • Neutrino Network Ltd is liable to account as constructive trustee for knowingly receiving misapplied payments.