Gabriel v Little & Ors

Gabriel v Little & Ors

BPE breached its duty of care by failing to inform Mr Gabriel of the true nature of the loan transaction and by drafting a facility letter inconsistent with the actual purpose; Mr Gabriel would not have entered the transaction had he known the true facts. No trust was created, and Mr Little did not act dishonestly;...

Source-derived case information.

Parties
Claimant: Richard Gabriel; 1st Defendant: Peter George Little; 2nd Defendant: Whiteshore Associates Limited; 3rd Defendant: High Tech Design & Build Limited; 4th Defendant: BPE Solicitors; 5th Defendant: BPE Solicitors LLP
Jurisdiction
England and Wales
Judgment Date
10 May 2012
Procedural Posture
Civil / Judgment
Outcome
Claims against Mr Little and High Tech dismissed; damages awarded against BPE.
Legal Topics
Solicitor's Duty of Care, Misrepresentation, Quistclose Trust, Breach of Trust, Dishonest Assistance, Knowing Receipt, Damages Assessment
Professional Negligence Contract Law Trusts Law Solicitor's Duty of Care Misrepresentation Quistclose Trust Breach of Trust Dishonest Assistance +2 more

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Parties

Richard Gabriel

Claimant

Peter George Little

1st Defendant

Whiteshore Associates Limited

2nd Defendant

High Tech Design & Build Limited

3rd Defendant

BPE Solicitors

4th Defendant

BPE Solicitors LLP

5th Defendant

Procedural Posture

Civil / Judgment

Legal Issues

  1. 1 Whether Mr Little made a fraudulent misrepresentation to Mr Gabriel regarding the purpose of the loan
  2. 2 Whether a Quistclose trust was created over the loan funds
  3. 3 Whether Mr Little and High Tech are liable for dishonest assistance or knowing receipt

Ratio Decidendi

BPE breached its duty of care by failing to inform Mr Gabriel of the true nature of the loan transaction and by drafting a facility letter inconsistent with the actual purpose; Mr Gabriel would not have entered the transaction had he known the true facts. No trust was created, and Mr Little did not act dishonestly; claims against Mr Little and High Tech dismissed. Damages awarded against BPE for breach of duty.

Court Disposition

Claims against Mr Little and High Tech dismissed; damages awarded against BPE.

Orders

  • BPE to pay damages of £191,808.44 to Mr Gabriel.
  • Claims against Mr Little and High Tech dismissed.