Burnden Holdings (UK) Ltd v Fielding & Anor [2016] EWCA Civ 557 (17 June 2016)

Burnden Holdings (UK) Ltd v Fielding & Anor [2016] EWCA Civ 557 (17 June 2016)

Section 21(1)(b) of the Limitation Act 1980 applies to claims where trust property is transferred to a company controlled by the trustee/director, so no limitation period applies to the claim for recovery of the share in Vital. Alternatively, whether section 32 postpones the limitation period due to deliberate concealment cannot be determined on summary judgment and requires trial of the facts.

Citation
[2016] EWCA Civ 557
Parties
Appellant/claimant: Burnden Holdings (UK) Limited (in liquidation); Respondent/defendant: Gary John Fielding; Respondent/defendant: Sally Anne Fielding
Jurisdiction
England and Wales
Judgment Date
17 June 2016
Procedural Posture
Civil Appeal / Appeal From Summary Judgment on Limitation
Outcome
appeal allowed
Legal Topics
Director's Duties, Unlawful Distribution, Limitation Period, Breach of Fiduciary Duty, Equitable Compensation
Company Law Insolvency Law Trusts Law Director's Duties Unlawful Distribution Limitation Period Breach of Fiduciary Duty Equitable Compensation

Case Brief

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Parties

Burnden Holdings (UK) Limited (in liquidation)

Appellant/claimant

Gary John Fielding

Respondent/defendant

Sally Anne Fielding

Respondent/defendant

Procedural Posture

Civil Appeal / Appeal From Summary Judgment on Limitation

Legal Issues

  1. 1 Whether the claim against directors for breach of duty is time-barred under the Limitation Act 1980
  2. 2 Whether section 21(1)(b) of the Limitation Act 1980 applies to indirect receipt of trust property via controlled companies
  3. 3 Whether section 32 of the Limitation Act 1980 postpones the limitation period due to deliberate concealment

Ratio Decidendi

Section 21(1)(b) of the Limitation Act 1980 applies to claims where trust property is transferred to a company controlled by the trustee/director, so no limitation period applies to the claim for recovery of the share in Vital. Alternatively, whether section 32 postpones the limitation period due to deliberate concealment cannot be determined on summary judgment and requires trial of the facts.

Court Disposition

appeal allowed

Orders

  • Summary judgment set aside
  • Case remitted for case management conference and directions for trial