Executive Authority for Air Cargo and Special Flights v Prime Education Limited (in liquidation) & Ors

Executive Authority for Air Cargo and Special Flights v Prime Education Limited (in liquidation) & Ors

Mr and Mrs Sekerci, as directors of Prime Education, knowingly and dishonestly procured and assisted breaches of contract and fiduciary duty by causing EACS' funds to be transferred to PE Turkey (not a subsidiary) and invested in Turkish property, contrary to the Amended Agreement and without EACS' authority. Their actions constituted dishonest assistance and unlawful means conspiracy, causing loss to EACS. They are jointly and severally liable with PE Turkey for the misapplied sums, with credit for amounts recovered, plus interest.

Parties
Claimant: Executive Authority for Air Cargo and Special Flights; First Defendant: Prime Education Limited (In Liquidation); Second Defendant: Tevfik Sekerci; Third Defendant: Sera Jane Sekerci; Fourth Defendant: Prime Education Havacilik Limited Sitketi; Fifth Defendant: York Property Suites Limited (Dissolved)
Jurisdiction
England and Wales
Judgment Date
11 September 2024
Procedural Posture
Civil (commercial/fiduciary) / Final Judgment After Trial
Outcome
Judgment for the Claimant against Mr and Mrs Sekerci and PE Turkey, jointly and severally, for €13,349,788.74 plus interest and £1,871,560.00 plus interest, with credit for £495,706.63 paid. Indemnity costs ordered against Mr and Mrs Sekerci up to trial; standard costs for post-judgment matters. Post-judgment...
Legal Topics
Inducing Breach of Contract, Dishonest Assistance of Breach of Fiduciary Duty, Unlawful Means Conspiracy, Directors' Duties, Constructive Trust, Damages, Freezing Injunction, Indemnity Costs
Contract Law Equity and Trusts Company Law Civil Procedure Inducing Breach of Contract Dishonest Assistance of Breach of Fiduciary Duty Unlawful Means Conspiracy Directors' Duties +4 more

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Parties

Executive Authority for Air Cargo and Special Flights

Claimant

Prime Education Limited (In Liquidation)

First Defendant

Tevfik Sekerci

Second Defendant

Sera Jane Sekerci

Third Defendant

Prime Education Havacilik Limited Sitketi

Fourth Defendant

York Property Suites Limited (Dissolved)

Fifth Defendant

Procedural Posture

Civil (commercial/fiduciary) / Final Judgment After Trial

Legal Issues

  1. 1 Whether Mr and/or Mrs Sekerci induced or assisted breaches of contract and fiduciary duty by Prime Education Limited in relation to EACS' funds
  2. 2 Whether Mr and/or Mrs Sekerci dishonestly assisted breaches of fiduciary duty by Prime Education Limited
  3. 3 Whether Mr and Mrs Sekerci conspired by unlawful means to injure EACS

Ratio Decidendi

Mr and Mrs Sekerci, as directors of Prime Education, knowingly and dishonestly procured and assisted breaches of contract and fiduciary duty by causing EACS' funds to be transferred to PE Turkey (not a subsidiary) and invested in Turkish property, contrary to the Amended Agreement and without EACS' authority. Their actions constituted dishonest assistance and unlawful means conspiracy, causing loss to EACS. They are jointly and severally liable with PE Turkey for the misapplied sums, with credit for amounts recovered, plus interest.

Court Disposition

Judgment for the Claimant against Mr and Mrs Sekerci and PE Turkey, jointly and severally, for €13,349,788.74 plus interest and £1,871,560.00 plus interest, with credit for £495,706.63 paid. Indemnity costs ordered against Mr and Mrs Sekerci up to trial; standard costs for post-judgment matters. Post-judgment...

Orders

  • Mr and Mrs Sekerci and PE Turkey to pay €13,349,788.74 plus interest at 2% p.a. from 15 March 2017
  • Mr and Mrs Sekerci and PE Turkey to pay £1,871,560.00 plus interest at 3% p.a. from 15 March 2017, less £495,706.63 credit