Shell International Trading & Shipping Company Ltd & Ors v Tikhonov & Ors

Shell International Trading & Shipping Company Ltd & Ors v Tikhonov & Ors

Mr Tikhonov received secret commissions and bribes in breach of his fiduciary duties as an employee of Shell, and the sums paid to TCL and TCML were for his benefit. Shell is entitled to recover the sums as money had and received, and to trace the 2006 payments into the Riga flat, with a proprietary interest proportionate to the misappropriated funds. Mr Tikhonov’s counterclaim for wrongful dismissal fails.

Parties
Claimant: Shell International Trading & Shipping Company Limited; Claimant: Shell Trading International Limited; Claimant: Shell Trading Russia BV; Defendant: Evgeny Tikhonov; Defendant: T Capital Limited; Defendant: T Capital Management Limited
Jurisdiction
England and Wales
Judgment Date
23 June 2010
Procedural Posture
Civil / Judgment After Trial
Outcome
Judgment for the claimants; counterclaim dismissed
Legal Topics
Bribery, Secret Commissions, Constructive Trust, Employee Fiduciary Duties, Tracing, Wrongful Dismissal
Employment Law Commercial Law Equity and Trusts Bribery Secret Commissions Constructive Trust Employee Fiduciary Duties Tracing +1 more

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Parties

Shell International Trading & Shipping Company Limited

Claimant

Shell Trading International Limited

Claimant

Shell Trading Russia BV

Claimant

Evgeny Tikhonov

Defendant

T Capital Limited

Defendant

T Capital Management Limited

Defendant

Procedural Posture

Civil / Judgment After Trial

Legal Issues

  1. 1 Whether Mr Tikhonov received secret commissions or bribes in breach of his duties as an employee
  2. 2 Whether Shell is entitled to recover the sums paid as bribes or secret commissions
  3. 3 Whether Shell can trace the proceeds into property acquired by Mr Tikhonov

Ratio Decidendi

Mr Tikhonov received secret commissions and bribes in breach of his fiduciary duties as an employee of Shell, and the sums paid to TCL and TCML were for his benefit. Shell is entitled to recover the sums as money had and received, and to trace the 2006 payments into the Riga flat, with a proprietary interest proportionate to the misappropriated funds. Mr Tikhonov’s counterclaim for wrongful dismissal fails.

Court Disposition

Judgment for the claimants; counterclaim dismissed

Orders

  • Mr Tikhonov to pay STASCO $2,461,723 as bribes received via TCL
  • Mr Tikhonov to account to STRU for £284,843 and $252,856 received as bribes in 2006, with interest