Weavering Capital (UK) Ltd & Ors v Dabhia & Anor [2013] EWCA Civ 71 (15 February 2013)

Weavering Capital (UK) Ltd & Ors v Dabhia & Anor [2013] EWCA Civ 71 (15 February 2013)

Both appellants breached their duties by failing to exercise reasonable care and skill, enabling misrepresentations and continuation of the Macro's sham business, which caused WCUK's losses; procedural fairness was not violated as negligence was sufficiently pleaded against Mr Platt.

Citation
[2013] EWCA Civ 71
Parties
Claimant/respondent: Weavering Capital (UK) Limited (in liquidation); Claimant/respondent: Geoffrey Bouchier; Claimant/respondent: Paul Clark; Defendant/appellant: Charanpreet Dabhia; Defendant/appellant: Edward Platt
Jurisdiction
England and Wales
Judgment Date
15 February 2013
Procedural Posture
Civil Appeal / Court of Appeal Judgment
Outcome
Appeals dismissed except as conceded regarding salary and bonuses; permission granted to amend grounds of appeal.
Legal Topics
Director's Duties, Negligence, Fiduciary Duty, Causation, Misrepresentation, Liquidation
Company Law Employment Law Financial Regulation Director's Duties Negligence Fiduciary Duty Causation Misrepresentation +1 more

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Parties

Weavering Capital (UK) Limited (in liquidation)

Claimant/respondent

Geoffrey Bouchier

Claimant/respondent

Paul Clark

Claimant/respondent

Charanpreet Dabhia

Defendant/appellant

Edward Platt

Defendant/appellant

Procedural Posture

Civil Appeal / Court of Appeal Judgment

Legal Issues

  1. 1 Whether Mr Dabhia breached his fiduciary and statutory duties as director
  2. 2 Whether Mr Platt was liable for negligence or breach of fiduciary duty
  3. 3 Whether breaches of duty caused the losses claimed by WCUK

Ratio Decidendi

Both appellants breached their duties by failing to exercise reasonable care and skill, enabling misrepresentations and continuation of the Macro's sham business, which caused WCUK's losses; procedural fairness was not violated as negligence was sufficiently pleaded against Mr Platt.

Court Disposition

Appeals dismissed except as conceded regarding salary and bonuses; permission granted to amend grounds of appeal.

Orders

  • Appeal allowed by consent regarding liability to account for salary and bonuses
  • Appeals otherwise dismissed