Centaur Litigation SPC & Ors v Terrill

Centaur Litigation SPC & Ors v Terrill

The court is satisfied that the joint official liquidators have a good arguable case that Mr Terrill was a de facto director who breached fiduciary duties and misappropriated company funds. There is a real risk of dissipation of assets, and the requirements for a worldwide freezing order are met. Delay is justified and the cross-undertaking in damages by insolvent companies does not bar relief.

Parties
Claimant: Centaur Litigation SPC (In Liquidation); Claimant: Centaur Litigation Limited (In Liquidation); Claimant: Centaur Litigation Unit Series 1 Limited (In Liquidation); Defendant: Brendan Terrill
Jurisdiction
England and Wales
Judgment Date
10 November 2015
Procedural Posture
Civil (insolvency/company) / Interlocutory Application for Recognition and Worldwide Freezing Order
Outcome
Worldwide freezing order granted; recognition of Cayman liquidators granted
Legal Topics
Freezing Injunction, Cross Border Insolvency, Director's Duties, De Facto Director Liability
Insolvency Company Law Civil Procedure Freezing Injunction Cross Border Insolvency Director's Duties De Facto Director Liability

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Parties

Centaur Litigation SPC (In Liquidation)

Claimant

Centaur Litigation Limited (In Liquidation)

Claimant

Centaur Litigation Unit Series 1 Limited (In Liquidation)

Claimant

Brendan Terrill

Defendant

Procedural Posture

Civil (insolvency/company) / Interlocutory Application for Recognition and Worldwide Freezing Order

Legal Issues

  1. 1 Whether the English court should assist the Grand Court of the Cayman Islands under section 426 of the Insolvency Act 1986
  2. 2 Whether a worldwide freezing order should be granted against Mr Terrill
  3. 3 Whether Mr Terrill owed and breached fiduciary duties as a de facto director

Ratio Decidendi

The court is satisfied that the joint official liquidators have a good arguable case that Mr Terrill was a de facto director who breached fiduciary duties and misappropriated company funds. There is a real risk of dissipation of assets, and the requirements for a worldwide freezing order are met. Delay is justified and the cross-undertaking in damages by insolvent companies does not bar relief.

Court Disposition

Worldwide freezing order granted; recognition of Cayman liquidators granted

Orders

  • Order under section 426 of the Insolvency Act 1986 granting recognition and assistance to the joint official liquidators
  • Worldwide freezing order against Mr Terrill in the sum of £13.25 million