Aston Risk Management Ltd v Lee Jones & Ors

Aston Risk Management Ltd v Lee Jones & Ors

ARM is entitled to equitable compensation for the value of the business and undertaking of ASS transferred to AMR by Mr Jones in breach of fiduciary duty, quantified at £1,235,285, and for unjustified payments to Neutrino (£130,418.95) and Cumulo (£33,900). Claims for loss of work in progress and administration/liquidation costs fail as they were not caused by the breaches found or not properly pleaded. Neutrino is liable as constructive trustee for knowing receipt of the unjustified payments.

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
11 October 2024
Procedural Posture
Civil (chancery Division) Business and Property Courts / Quantum Determination Following Liability Judgment
Outcome
Judgment for the claimant in part
Legal Topics
Equitable Compensation, Breach of Fiduciary Duty, Knowing Receipt, Valuation of Business, Remedies for Breach of Trust
Equity Company Law Fiduciary Duties Equitable Compensation Breach of Fiduciary Duty Knowing Receipt Valuation of Business Remedies for Breach of Trust

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

Civil (chancery Division) Business and Property Courts / Quantum Determination Following Liability Judgment

Legal Issues

  1. 1 What equitable compensation is payable for breach of fiduciary duty by Mr Jones in transferring the business and undertaking of ASS to AMR?
  2. 2 What sums are recoverable for unjustified payments to Neutrino and Cumulo?
  3. 3 Is compensation for loss of work in progress or administration/liquidation costs recoverable?

Ratio Decidendi

ARM is entitled to equitable compensation for the value of the business and undertaking of ASS transferred to AMR by Mr Jones in breach of fiduciary duty, quantified at £1,235,285, and for unjustified payments to Neutrino (£130,418.95) and Cumulo (£33,900). Claims for loss of work in progress and administration/liquidation costs fail as they were not caused by the breaches found or not properly pleaded. Neutrino is liable as constructive trustee for knowing receipt of the unjustified payments.

Court Disposition

Judgment for the claimant in part

Orders

  • Mr Jones to pay ARM £1,235,285 for the transfer of the business and undertaking of ASS to AMR.
  • Mr Jones to pay ARM £130,418.95 for unjustified payments to Neutrino.