Lum v Chan

Lum v Chan

Damages awarded based on purchase price of NewCo with uplift for side agreement, gross profit margin determined at 55% based on evidence, sums diverted from NewCo to defendant's accounts recoverable, and freezing injunction extended due to risk of asset dissipation.

Parties
Claimant: Wee Leong Lum; Defendant: Bun Chan
Jurisdiction
England and Wales
Judgment Date
11 September 2020
Procedural Posture
Civil / Quantum Determination Following Liability Judgment
Outcome
Judgment for claimant on quantum; defendant held liable for damages.
Legal Topics
Breach of Fiduciary Duty, Diversion of Business Opportunities, Damages Assessment, Freezing Injunction, Liquidation
Commercial Law Company Law Employment Law Breach of Fiduciary Duty Diversion of Business Opportunities Damages Assessment Freezing Injunction Liquidation

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Parties

Wee Leong Lum

Claimant

Bun Chan

Defendant

Procedural Posture

Civil / Quantum Determination Following Liability Judgment

Legal Issues

  1. 1 Assessment of damages for breach of duty and diversion of business opportunities
  2. 2 Valuation of company loss
  3. 3 Calculation of monies diverted from company accounts

Ratio Decidendi

Damages awarded based on purchase price of NewCo with uplift for side agreement, gross profit margin determined at 55% based on evidence, sums diverted from NewCo to defendant's accounts recoverable, and freezing injunction extended due to risk of asset dissipation.

Court Disposition

Judgment for claimant on quantum; defendant held liable for damages.

Orders

  • Defendant to pay claimant £150,000 for loss of value of NewCo.
  • Defendant to pay claimant £49,114 for undisputed diverted funds.