Warner & Ors v

Warner & Ors v

Merriman White had no authority from SMP Trustees Limited to institute or continue proceedings; acting solely on instructions from Mr Warner, who had no power to bind the trustees, constituted a breach of warranty of authority. The orders against SMP must be rescinded, SMP struck from the petition, and Merriman White ordered to pay all costs occasioned by the wrongful institution of proceedings.

Parties
1st Petitioner: David Warner; 2nd Petitioner: SMP Trustees Limited (formerly Fortis Intertrust Trustees (IOM) Ltd); 1st Respondent: Sir Charles Masefield; 2nd Respondent: Robert Lynn Priddy; 3rd Respondent: Andrew Jonathan Mark Taylor; 4th Respondent: Doctor Dina Chaya Moghrabi; 5th Respondent: Reed R Prior; 6th Respondent: Robert Crane; 7th Respondent: Peter Godfrey Higgins; 8th Respondent: 3i Group PLC; 9th Respondent: Microsulis Limited (In administration); Respondent to the Application: Merriman White (a firm)
Jurisdiction
England and Wales
Judgment Date
22 May 2008
Procedural Posture
Company Petition / Application / Ruling on Applications to Rescind Orders, Strike Out 2nd Petitioner, and for Costs Against Solicitors
Outcome
Applications granted in full for SMP Trustees Limited and Respondents; Merriman White found in breach of warranty of authority.
Legal Topics
Warranty of Authority, Solicitor's Duties, Costs Orders, Authority to Institute Proceedings, Trustee Powers
Company Law Trust Law Professional Conduct Warranty of Authority Solicitor's Duties Costs Orders Authority to Institute Proceedings Trustee Powers

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Parties

David Warner

1st Petitioner

SMP Trustees Limited (formerly Fortis Intertrust Trustees (IOM) Ltd)

2nd Petitioner

Sir Charles Masefield

1st Respondent

Robert Lynn Priddy

2nd Respondent

Andrew Jonathan Mark Taylor

3rd Respondent

Doctor Dina Chaya Moghrabi

4th Respondent

Reed R Prior

5th Respondent

Robert Crane

6th Respondent

Peter Godfrey Higgins

7th Respondent

3i Group PLC

8th Respondent

Microsulis Limited (In administration)

9th Respondent

Merriman White (a firm)

Respondent to the Application

Procedural Posture

Company Petition / Application / Ruling on Applications to Rescind Orders, Strike Out 2nd Petitioner, and for Costs Against Solicitors

Legal Issues

  1. 1 Whether Merriman White had authority to institute proceedings on behalf of SMP Trustees Limited
  2. 2 Whether orders against SMP should be rescinded and SMP struck from the petition
  3. 3 Whether Merriman White should be liable for costs for breach of warranty of authority

Ratio Decidendi

Merriman White had no authority from SMP Trustees Limited to institute or continue proceedings; acting solely on instructions from Mr Warner, who had no power to bind the trustees, constituted a breach of warranty of authority. The orders against SMP must be rescinded, SMP struck from the petition, and Merriman White ordered to pay all costs occasioned by the wrongful institution of proceedings.

Court Disposition

Applications granted in full for SMP Trustees Limited and Respondents; Merriman White found in breach of warranty of authority.

Orders

  • Orders of Chief Registrar Baister dated 25 October 2007 and Registrar Derrett dated 21 and 27 November 2007 rescinded against the 2nd Petitioner.
  • 2nd Petitioner’s name struck from the Petition ab initio.