Hampton Capital Ltd, Re [2015] EWHC 1905 (Ch) (09 July 2015)

Hampton Capital Ltd, Re [2015] EWHC 1905 (Ch) (09 July 2015)

Elite was unjustly enriched by £335,000 received from the Company, as the payments were misappropriated and Elite provided no consideration; no change of position defence was advanced. Kanzira was unjustly enriched by £157,000 (all payments after the first £125,000), as he knew or had reasonable grounds to suspect the money was misapplied; his change of position defence failed for those sums. Section 238 claims failed as there was no transaction 'with' the recipients within the statutory meaning.

Citation
[2015] EWHC 1905 (Ch)
Parties
Applicant / Joint Administrator: Anthony Murphy; Applicant / Joint Administrator: Paul Robert Boyle; Claimant / Company: Hampton Capital Limited; Respondent / Defendant: Elite Performance Cars Limited; Respondent / Defendant: Paul Commerford; Respondent / Defendant: Oswald Kanzira; Respondent / Defendant: Erkan Akbas
Jurisdiction
England and Wales
Judgment Date
09 July 2015
Procedural Posture
Insolvency / Restitution / Transaction at Undervalue / Judgment After Trial
Outcome
Judgment for the Claimants in part.
Legal Topics
Transactions at Undervalue, Unjust Enrichment, Change of Position Defence, Ministerial Receipt, Director's Authority, Restitution of Stolen Money
Insolvency Law Company Law Restitution / Unjust Enrichment Transactions at Undervalue Unjust Enrichment Change of Position Defence Ministerial Receipt Director's Authority +1 more

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Parties

Anthony Murphy

Applicant / Joint Administrator

Paul Robert Boyle

Applicant / Joint Administrator

Hampton Capital Limited

Claimant / Company

Elite Performance Cars Limited

Respondent / Defendant

Paul Commerford

Respondent / Defendant

Oswald Kanzira

Respondent / Defendant

Erkan Akbas

Respondent / Defendant

Procedural Posture

Insolvency / Restitution / Transaction at Undervalue / Judgment After Trial

Legal Issues

  1. 1 Whether payments made by Hampton Capital Limited to Elite Performance Cars Limited and Oswald Kanzira were recoverable as unjust enrichment or under section 238 of the Insolvency Act 1986 as transactions at an undervalue.
  2. 2 Whether the recipients had a valid change of position defence or other defence to restitution.

Ratio Decidendi

Elite was unjustly enriched by £335,000 received from the Company, as the payments were misappropriated and Elite provided no consideration; no change of position defence was advanced. Kanzira was unjustly enriched by £157,000 (all payments after the first £125,000), as he knew or had reasonable grounds to suspect the money was misapplied; his change of position defence failed for those sums. Section 238 claims failed as there was no transaction 'with' the recipients within the statutory meaning.

Court Disposition

Judgment for the Claimants in part.

Orders

  • Elite Performance Cars Limited to pay £335,000 to the Company.
  • Oswald Kanzira to pay £157,000 to the Company.