Tonstate Group Ltd & Ors v Wojakovski

Tonstate Group Ltd & Ors v Wojakovski

Permission is granted for the continuation of derivative actions by Mr Matyas and TGL as appropriate. Indemnity for costs out of the assets of the yellow companies is refused due to the risk of unfairly burdening Mr Wojakovski's interest if the claims fail. Injunctions restraining TGL from using its assets to fund its own claims or the personal costs of Mr and Mrs Matyas are refused, as there is sufficient headroom in assets and any prejudice can be remedied by adjustment after trial. A cap of £3 million is imposed on TGL's use of assets to fund the main action, subject to further review.

Parties
Claimant: Tonstate Group Ltd & Others; Defendant: Edward Wojakovski; Claimant: Arthur Matyas & Renate Matyas
Jurisdiction
England and Wales
Judgment Date
28 March 2019
Procedural Posture
Civil Derivative Actions / Interlocutory Application for Permission to Continue Derivative Actions and Related Injunctions
Outcome
Applications granted in part and refused in part
Legal Topics
Derivative Actions, Costs and Indemnities, Injunctions, Shareholder Disputes
Company Law Civil Procedure Derivative Actions Costs and Indemnities Injunctions Shareholder Disputes

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 5 Authorities cited 13 Party arguments 2 Amounts and remedies 10
Sign in to unlock

Parties

Tonstate Group Ltd & Others

Claimant

Edward Wojakovski

Defendant

Arthur Matyas & Renate Matyas

Claimant

Procedural Posture

Civil Derivative Actions / Interlocutory Application for Permission to Continue Derivative Actions and Related Injunctions

Legal Issues

  1. 1 Whether permission should be granted to continue derivative actions by certain companies and shareholders
  2. 2 Whether indemnity for costs should be granted out of company assets
  3. 3 Whether injunctions should be granted restraining use of company assets to fund litigation

Ratio Decidendi

Permission is granted for the continuation of derivative actions by Mr Matyas and TGL as appropriate. Indemnity for costs out of the assets of the yellow companies is refused due to the risk of unfairly burdening Mr Wojakovski's interest if the claims fail. Injunctions restraining TGL from using its assets to fund its own claims or the personal costs of Mr and Mrs Matyas are refused, as there is sufficient headroom in assets and any prejudice can be remedied by adjustment after trial. A cap of £3 million is imposed on TGL's use of assets to fund the main action, subject to further review.

Court Disposition

Applications granted in part and refused in part

Orders

  • Permission granted to Mr Matyas to continue actions by the yellow companies as double derivative actions
  • Permission granted to TGL to commence derivative actions on behalf of the red companies