Capita Trust Company Ltd v Optical Service (UK) Ltd

Capita Trust Company Ltd v Optical Service (UK) Ltd

The Defendant's explanation for the sum in question is inherently implausible, unsupported by contemporaneous documents, inconsistent with prior explanations, and contradicted by evidence from the company's own accountant and correspondence. The Claimant's case is overwhelmingly supported by the documentary evidence. There is no real prospect of the Defendant successfully defending the claim, and no Limitation Act defence arises as the cause of action accrued only upon demand for repayment in May 2012.

Parties
Claimant/respondent: Capita Trust Company Limited (as Administrator of the Estate of Graham Smith - Deceased); Defendant/appellant: Optical Service (UK) Limited
Jurisdiction
England and Wales
Judgment Date
13 March 2014
Procedural Posture
Civil / Summary Judgment Application
Outcome
Judgment for the Claimant
Legal Topics
Summary Judgment, Limitation Act, Loan Accounts, Bonus Payments, Pension Contributions
Contract Law Employment Law Trusts and Estates Summary Judgment Limitation Act Loan Accounts Bonus Payments Pension Contributions

Case Brief

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Parties

Capita Trust Company Limited (as Administrator of the Estate of Graham Smith - Deceased)

Claimant/respondent

Optical Service (UK) Limited

Defendant/appellant

Procedural Posture

Civil / Summary Judgment Application

Legal Issues

  1. 1 Whether the sum of £477,630.87 plus interest is owed by the Defendant to the estate of Graham Smith as a loan account balance representing unpaid bonuses and interest.
  2. 2 Whether the Defendant's explanation that the sum is owed to other directors as deferred pension payments is credible.
  3. 3 Whether the Limitation Act defence is arguable.

Ratio Decidendi

The Defendant's explanation for the sum in question is inherently implausible, unsupported by contemporaneous documents, inconsistent with prior explanations, and contradicted by evidence from the company's own accountant and correspondence. The Claimant's case is overwhelmingly supported by the documentary evidence. There is no real prospect of the Defendant successfully defending the claim, and no Limitation Act defence arises as the cause of action accrued only upon demand for repayment in May 2012.

Court Disposition

Judgment for the Claimant

Orders

  • The Defendant shall pay the Claimant £477,630.87 plus interest from 30 September 2006.