National Grid Electricity Transmission Plc v McKenzie Harbour Management Resources Ltd & Anor (Rev 1)

National Grid Electricity Transmission Plc v McKenzie Harbour Management Resources Ltd & Anor (Rev 1)

Mr McKenzie and Mr Read breached contractual and fiduciary duties by receiving bribes, approving fraudulent time sheets, and participating in schemes to procure secret profits and overcharges. National Grid is entitled to account for bribes and secret profits, damages for actual losses, and compensation for investigation costs. The court assessed losses based on evidence of overcharges, improper procurement, and fraudulent conduct, applying equitable and common law principles.

Parties
Claimant: National Grid Electricity Transmission PLC; Defendant: Andrew James McKenzie; Defendant: Harbour Management Resources Ltd; Defendant: Alan Denis Read
Jurisdiction
England and Wales
Judgment Date
21 July 2009
Procedural Posture
Civil / Final Judgment With Supplemental Rulings
Outcome
Judgment for Claimant in part; relief granted as specified.
Legal Topics
Bribery, Fraud, Breach of Fiduciary Duty, Breach of Contract, Deceit, Conspiracy, Restitution, Damages, Constructive Trust, Account of Profits
Employment Law Commercial Law Equity Tort Law Bribery Fraud Breach of Fiduciary Duty Breach of Contract +6 more

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Parties

National Grid Electricity Transmission PLC

Claimant

Andrew James McKenzie

Defendant

Harbour Management Resources Ltd

Defendant

Alan Denis Read

Defendant

Procedural Posture

Civil / Final Judgment With Supplemental Rulings

Legal Issues

  1. 1 Whether Mr McKenzie and Mr Read engaged in corrupt practices and breached fiduciary duties
  2. 2 Whether secret profits and bribes were received by Mr McKenzie
  3. 3 Whether National Grid suffered loss and is entitled to damages or account of profits

Ratio Decidendi

Mr McKenzie and Mr Read breached contractual and fiduciary duties by receiving bribes, approving fraudulent time sheets, and participating in schemes to procure secret profits and overcharges. National Grid is entitled to account for bribes and secret profits, damages for actual losses, and compensation for investigation costs. The court assessed losses based on evidence of overcharges, improper procurement, and fraudulent conduct, applying equitable and common law principles.

Court Disposition

Judgment for Claimant in part; relief granted as specified.

Orders

  • Mr McKenzie to account for bribes in the sum of £161,403
  • In the alternative, damages of £404,000 for overcharges on Squire’s and Grimston labour contracts (Mr Read jointly liable for £153,000)