Charter Plc & Anor v City Index Ltd & Ors

Charter Plc & Anor v City Index Ltd & Ors

The Part 20 claim for contribution by City Index against the directors and auditors is authorised under the Civil Liability (Contribution) Act 1978, but has no real prospect of success because City Index, as the recipient of the funds, either retained or used them for its own purposes, and equity dictates that recipients bear the loss, not those who received nothing.

Parties
Claimant: Charter plc; Claimant: Charter Central Finance Limited; Defendant/part 20 Claimant: City Index Limited; Part 20 Defendants: Directors of Charter (Defendants 1-12); Part 20 Defendant: Group Auditors (Defendant 13)
Jurisdiction
England and Wales
Judgment Date
12 October 2006
Procedural Posture
Civil / Summary Judgment/strike Out Application
Outcome
Part 20 claim summarily dismissed
Legal Topics
Knowing Receipt, Contribution, Breach of Trust, Constructive Trusteeship, Civil Liability (contribution) Act 1978, Summary Judgment, Directors' Duties, Auditors' Liability
Equity Restitution Company Law Civil Procedure Knowing Receipt Contribution Breach of Trust Constructive Trusteeship +4 more

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Parties

Charter plc

Claimant

Charter Central Finance Limited

Claimant

City Index Limited

Defendant/part 20 Claimant

Directors of Charter (Defendants 1-12)

Part 20 Defendants

Group Auditors (Defendant 13)

Part 20 Defendant

Procedural Posture

Civil / Summary Judgment/strike Out Application

Legal Issues

  1. 1 Whether City Index's Part 20 claim for contribution/indemnity against directors and auditors is authorised under the Civil Liability (Contribution) Act 1978
  2. 2 Whether City Index's Part 20 claim has a real prospect of success given it received and used the funds in question

Ratio Decidendi

The Part 20 claim for contribution by City Index against the directors and auditors is authorised under the Civil Liability (Contribution) Act 1978, but has no real prospect of success because City Index, as the recipient of the funds, either retained or used them for its own purposes, and equity dictates that recipients bear the loss, not those who received nothing.

Court Disposition

Part 20 claim summarily dismissed

Orders

  • Part 20 proceedings brought by City Index against directors and auditors are summarily dismissed pursuant to CPR Rule 24.2