Brent London Borough Council v Davies & Ors

Brent London Borough Council v Davies & Ors

The court found that while there was no unlawful means conspiracy among the Defendants, several Defendants (notably Mr Davies, Dr Patel, and Mr Day) breached fiduciary duties by authorising and receiving substantial overpayments through an ad hoc procedure, acting dishonestly or with reckless indifference to the interests of the Claimant. Some Defendants (Dr Evans, Mr Udokoro, Ms McKenzie) were liable for knowing receipt of funds paid in breach of fiduciary duty, but only for payments within the limitation period. Dr Patel and Mr Day, as public officers, were also liable for misfeasance in public office for payments authorised after May 2007. The claims for breach of fiduciary duty were...

Parties
Claimant: Brent London Borough Council; First Defendant: Alan Davies; Second Defendant: Dr Richard Evans; Third Defendant: Columbus Udokoro; Fourth Defendant: Michele McKenzie (formerly Bishop); Fifth Defendant: Dr Indravadan Patel; Sixth Defendant: Martin Day
Jurisdiction
England and Wales
Judgment Date
16 August 2018
Procedural Posture
Civil / Final Judgment After Full Trial
Outcome
Claim allowed in part; conspiracy claim dismissed; Defendants found liable for breach of fiduciary duty, knowing receipt, and misfeasance in public office as specified.
Legal Topics
Fiduciary Duties, Misfeasance in Public Office, Knowing Receipt, Limitation of Actions, School Governance, Unlawful Means Conspiracy, Employment Remuneration, Statutory Interpretation
Public Law Education Law Equity and Trusts Employment Law Tort Fiduciary Duties Misfeasance in Public Office Knowing Receipt +5 more

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Parties

Brent London Borough Council

Claimant

Alan Davies

First Defendant

Dr Richard Evans

Second Defendant

Columbus Udokoro

Third Defendant

Michele McKenzie (formerly Bishop)

Fourth Defendant

Dr Indravadan Patel

Fifth Defendant

Martin Day

Sixth Defendant

Procedural Posture

Civil / Final Judgment After Full Trial

Legal Issues

  1. 1 Whether overpayments to school staff were unlawful and/or unauthorised
  2. 2 Whether Defendants breached fiduciary duties to the Claimant
  3. 3 Whether Defendants are liable for knowing receipt of funds paid in breach of fiduciary duty

Ratio Decidendi

The court found that while there was no unlawful means conspiracy among the Defendants, several Defendants (notably Mr Davies, Dr Patel, and Mr Day) breached fiduciary duties by authorising and receiving substantial overpayments through an ad hoc procedure, acting dishonestly or with reckless indifference to the interests of the Claimant. Some Defendants (Dr Evans, Mr Udokoro, Ms McKenzie) were liable for knowing receipt of funds paid in breach of fiduciary duty, but only for payments within the limitation period. Dr Patel and Mr Day, as public officers, were also liable for misfeasance in public office for payments authorised after May 2007. The claims for breach of fiduciary duty were...

Court Disposition

Claim allowed in part; conspiracy claim dismissed; Defendants found liable for breach of fiduciary duty, knowing receipt, and misfeasance in public office as specified.

Orders

  • Mr Davies to account in equity for all sums received via the ad hoc memos except the first Ali Memo, first NSD Memo, and memo of 13 August 2007; to repay £9,600 for Saturday school overpayments; proprietary remedy available for constructive trust tracing.
  • Dr Evans to account for knowing receipt of payments after 10 July 2008 under the fifth NSD Memo, memo of 7 July 2008, and seventh NSD Memo.