Triodos Bank v Dobbs & Anor

Triodos Bank v Dobbs & Anor

All allegations against the Bank and Receivers fail except that Acorn is entitled to nominal damages (£2) for the Bank's failure to exercise its step-in rights under the construction contract between 20 October and 22 December 2000. The Bank is entitled to judgment for £50,369.71 plus interest against Mr Dobbs on the guarantee. The Bank and Receivers acted properly, did not become shadow or de facto directors, did not act in conspiracy or breach of duty, and the sale of assets was not at an undervalue. No actionable misrepresentation or economic duress was established.

Parties
Claimant in First Claim & 3rd Defendant in Second Claim: Triodos Bank NV; Defendant in First Claim and Claimant in Second Claim: Ashley Charles Dobbs; Defendant in First Claim and Claimant in Second Claim: Acorn Televillages Limited; Defendant in Second Claim: Nigel Morrison; Defendant in Second Claim: Michael Peter Gerrard
Jurisdiction
England and Wales
Judgment Date
19 April 2004
Procedural Posture
Civil (banking/receivership/guarantee) / Judgment After Trial
Outcome
Judgment for the Bank on the guarantee; all counterclaims and claims against the Bank and Receivers dismissed except for nominal damages to Acorn.
Legal Topics
Personal Guarantee Enforcement, Duties of Receivers, Shadow/de Facto Directors, Economic Duress, Breach of Contract, Misrepresentation, Sale at Undervalue, Banking Practice
Banking Law Company Law Receivership Contract Law Personal Guarantee Enforcement Duties of Receivers Shadow/de Facto Directors Economic Duress +4 more

Case Brief

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Parties

Triodos Bank NV

Claimant in First Claim & 3rd Defendant in Second Claim

Ashley Charles Dobbs

Defendant in First Claim and Claimant in Second Claim

Acorn Televillages Limited

Defendant in First Claim and Claimant in Second Claim

Nigel Morrison

Defendant in Second Claim

Michael Peter Gerrard

Defendant in Second Claim

Procedural Posture

Civil (banking/receivership/guarantee) / Judgment After Trial

Legal Issues

  1. 1 Whether the Bank was liable for breach of contract, misrepresentation, or economic duress in its dealings with Acorn and Mr Dobbs;
  2. 2 Whether the Bank became a shadow or de facto director of Acorn and owed fiduciary duties;
  3. 3 Whether the Bank and Receivers acted improperly or negligently in the receivership and sale of assets;

Ratio Decidendi

All allegations against the Bank and Receivers fail except that Acorn is entitled to nominal damages (£2) for the Bank's failure to exercise its step-in rights under the construction contract between 20 October and 22 December 2000. The Bank is entitled to judgment for £50,369.71 plus interest against Mr Dobbs on the guarantee. The Bank and Receivers acted properly, did not become shadow or de facto directors, did not act in conspiracy or breach of duty, and the sale of assets was not at an undervalue. No actionable misrepresentation or economic duress was established.

Court Disposition

Judgment for the Bank on the guarantee; all counterclaims and claims against the Bank and Receivers dismissed except for nominal damages to Acorn.

Orders

  • Judgment for Triodos Bank NV against Ashley Charles Dobbs for £50,369.71 plus interest from the date of proceedings.
  • Dismissal of Mr Dobbs' counterclaim and claims against the Receivers.