Taylor Goodchild Ltd v Taylor & Anor [2020] EWHC 2000 (Ch) (24 July 2020)

Taylor Goodchild Ltd v Taylor & Anor [2020] EWHC 2000 (Ch) (24 July 2020)

The DLA Claim is not barred by res judicata or abuse of process because it could not have been raised by the Company in the Petition due to deadlock and company structure, and the issue was ventilated with the court in the earlier proceedings. The DLA Claim has a realistic prospect of success and should proceed. The WIP Claim and Account of Profits Claim are not barred by cause of action estoppel or issue estoppel, but could and should have been raised in the Petition; however, a broad merits-based assessment is required under Henderson v Henderson.

Citation
[2020] EWHC 2000 (Ch)
Parties
Claimant/respondent: Taylor Goodchild Limited; Defendant/applicant: Scott Taylor; Defendant/applicant: Scott Taylor Law Limited
Jurisdiction
England and Wales
Judgment Date
24 July 2020
Procedural Posture
Strike Out And/or Summary Judgment Application / Judgment on Application
Outcome
Application to strike out and/or for summary judgment refused in respect of the DLA Claim; DLA Claim allowed to proceed.
Legal Topics
Res Judicata, Abuse of Process, Directors' Duties, Unfair Prejudice, Summary Judgment, Directors' Loan Accounts
Company Law Civil Procedure Res Judicata Abuse of Process Directors' Duties Unfair Prejudice Summary Judgment Directors' Loan Accounts

Case Brief

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Parties

Taylor Goodchild Limited

Claimant/respondent

Scott Taylor

Defendant/applicant

Scott Taylor Law Limited

Defendant/applicant

Procedural Posture

Strike Out And/or Summary Judgment Application / Judgment on Application

Legal Issues

  1. 1 Whether the DLA Claim is barred by res judicata or abuse of process
  2. 2 Whether the WIP Claim and Account of Profits Claim are barred by res judicata or abuse of process
  3. 3 Whether summary judgment should be granted on the DLA Claim

Ratio Decidendi

The DLA Claim is not barred by res judicata or abuse of process because it could not have been raised by the Company in the Petition due to deadlock and company structure, and the issue was ventilated with the court in the earlier proceedings. The DLA Claim has a realistic prospect of success and should proceed. The WIP Claim and Account of Profits Claim are not barred by cause of action estoppel or issue estoppel, but could and should have been raised in the Petition; however, a broad merits-based assessment is required under Henderson v Henderson.

Court Disposition

Application to strike out and/or for summary judgment refused in respect of the DLA Claim; DLA Claim allowed to proceed.

Orders

  • DLA Claim allowed to proceed to trial.
  • Application to strike out and/or for summary judgment on DLA Claim refused.