OBG Ltd & Anor v Allan & Ors [2005] EWCA Civ 106 (09 February 2005)

OBG Ltd & Anor v Allan & Ors [2005] EWCA Civ 106 (09 February 2005)

Invalidly appointed receivers do not commit the tort of wrongful interference with contractual relations absent intention to procure breach or hinder performance; conversion does not apply to contractual rights; liquidators' actual costs exceeding notional liquidation costs are recoverable as damages if caused by receivership.

Citation
[2005] EWCA Civ 106
Parties
Claimant/respondent: OBG Ltd.; Claimant/respondent: OBG (Plant & Transport Hire) Ltd.; First Defendant/first Appellant: Iain John Allan; Second Defendant/second Appellant: Michael Francis Stevenson; Third Defendant: Raymond International Ltd. (formerly Raymond Centriline Ltd.); Fourth Defendant/third Appellant: Penningtons
Jurisdiction
England and Wales
Judgment Date
09 February 2005
Procedural Posture
Civil Appeal / Court of Appeal Judgment Following High Court Trial and Quantum Assessment
Outcome
Appeal allowed in part; Judge's finding of wrongful interference with contractual relations overturned; conversion claim rejected; damages for liquidators' costs recoverable in principle.
Legal Topics
Wrongful Interference With Contractual Relations, Conversion, Trespass, Remuneration of Liquidators, Damages Assessment, Invalid Appointment of Receivers
Tort Law Insolvency Law Company Law Wrongful Interference With Contractual Relations Conversion Trespass Remuneration of Liquidators Damages Assessment +1 more

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Parties

OBG Ltd.

Claimant/respondent

OBG (Plant & Transport Hire) Ltd.

Claimant/respondent

Iain John Allan

First Defendant/first Appellant

Michael Francis Stevenson

Second Defendant/second Appellant

Raymond International Ltd. (formerly Raymond Centriline Ltd.)

Third Defendant

Penningtons

Fourth Defendant/third Appellant

Procedural Posture

Civil Appeal / Court of Appeal Judgment Following High Court Trial and Quantum Assessment

Legal Issues

  1. 1 Whether invalidly appointed receivers commit the tort of wrongful interference with contractual relations
  2. 2 Whether conversion applies to contractual rights
  3. 3 Whether liquidators' actual costs exceeding notional liquidation costs are recoverable as damages

Ratio Decidendi

Invalidly appointed receivers do not commit the tort of wrongful interference with contractual relations absent intention to procure breach or hinder performance; conversion does not apply to contractual rights; liquidators' actual costs exceeding notional liquidation costs are recoverable as damages if caused by receivership.

Court Disposition

Appeal allowed in part; Judge's finding of wrongful interference with contractual relations overturned; conversion claim rejected; damages for liquidators' costs recoverable in principle.

Orders

  • Judge's decision on wrongful interference with contractual relations reversed
  • Claim for conversion of contractual rights dismissed