Shell International Trading & Shipping Company Ltd & Ors v Tikhonov & Ors [2010] EWHC 1399 (QB) (23 June 2010)

Shell International Trading & Shipping Company Ltd & Ors v Tikhonov & Ors [2010] EWHC 1399 (QB) (23 June 2010)

Mr Tikhonov, while employed by Shell, received secret commissions and bribes through offshore companies he beneficially owned, in breach of his fiduciary duties. Shell is entitled to recover the sums paid as bribes, and to trace the 2006 payments into the Riga property, obtaining a proprietary interest. Mr Tikhonov's explanations were found to be dishonest and his counterclaim for wrongful dismissal fails.

Citation
[2010] EWHC 1399
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 / Final Judgment After Trial
Outcome
Judgment for the claimants; counterclaim dismissed.
Legal Topics
Bribery and Secret Commissions, Constructive Trusts, Employee Fiduciary Duties, Tracing, Wrongful Dismissal, Corporate Veil Piercing
Employment Law Commercial Law Equity and Trusts Fraud and Corruption Bribery and Secret Commissions Constructive Trusts Employee Fiduciary Duties Tracing +2 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 / Final Judgment After Trial

Legal Issues

  1. 1 Whether Mr Tikhonov received secret commissions or bribes in breach of his employment duties to Shell
  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, while employed by Shell, received secret commissions and bribes through offshore companies he beneficially owned, in breach of his fiduciary duties. Shell is entitled to recover the sums paid as bribes, and to trace the 2006 payments into the Riga property, obtaining a proprietary interest. Mr Tikhonov's explanations were found to be dishonest and his counterclaim for wrongful dismissal fails.

Court Disposition

Judgment for the claimants; counterclaim dismissed.

Orders

  • Mr Tikhonov to pay Shell International Trading & Shipping Company Limited $2,461,723 as bribes received via TCL, plus appropriate interest.
  • Mr Tikhonov to account to Shell Trading Russia BV for £284,843 and $252,856 (plus interest) as bribes received in 2006, and STRU entitled to a 72.4% beneficial interest in the Riga flat.