Carr v Formation Group Plc & Ors [2018] EWHC 3116 (Ch) (19 November 2018)

Carr v Formation Group Plc & Ors [2018] EWHC 3116 (Ch) (19 November 2018)

Expert evidence on market practice is not admissible to determine the objective standard of dishonesty, but is admissible for the limited purposes of supporting a defence of honest belief in relation to conspiracy to injure by unlawful means and to limitation defences under section 32(2) of the Limitation Act 1980,...

Source-derived case information.

Citation
[2018] EWHC 3116 (Ch)
Parties
Claimant: David Hugh Carr; Claimant: Andrew Alexander Cole; Claimant: John Charles Keyworth Curtis; Claimant: Sean Davis; Claimant: Robert James Elliott; Claimant: Neil Shaka Hislop; Claimant: John Stephen Hughes; Claimant: Denis Joseph Irwin; Claimant: Thomas Johnson; Claimant: Zatyiah Knight; Claimant: Daniel Ben Murphy; Claimant: Ian Anthony Pearce; Claimant: Robert William Savage; Claimant: Jonathan Craig Short; Claimant: James Anthony Smith; Claimant: Gary Teale; Claimant: Antony Vidmar; Defendant: Formation Group PLC; Defendant: Ian Battersby; Defendant: Formation Asset Management Limited (in Liquidation); Defendant: David McKee; Defendant: Kevin Patrick McMenamin; Defendant: Paul Stretford; Defendant: George Stuart Urquhart
Jurisdiction
England and Wales
Judgment Date
19 November 2018
Procedural Posture
Civil / Case Management Conference; Application for Permission to Adduce Expert Evidence
Outcome
Application granted in part
Legal Topics
Fiduciary Duties, Dishonest Assistance, Secret Commissions, Limitation of Actions, Expert Evidence, Conspiracy to Injure, Breach of Duty
Commercial Law Equity and Trusts Tort Law Fiduciary Duties Dishonest Assistance Secret Commissions Limitation of Actions Expert Evidence +2 more

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Parties

David Hugh Carr

Claimant

Andrew Alexander Cole

Claimant

John Charles Keyworth Curtis

Claimant

Sean Davis

Claimant

Robert James Elliott

Claimant

Neil Shaka Hislop

Claimant

John Stephen Hughes

Claimant

Denis Joseph Irwin

Claimant

Thomas Johnson

Claimant

Zatyiah Knight

Claimant

Daniel Ben Murphy

Claimant

Ian Anthony Pearce

Claimant

Robert William Savage

Claimant

Jonathan Craig Short

Claimant

James Anthony Smith

Claimant

Gary Teale

Claimant

Antony Vidmar

Claimant

Formation Group PLC

Defendant

Ian Battersby

Defendant

Formation Asset Management Limited (in Liquidation)

Defendant

David McKee

Defendant

Kevin Patrick McMenamin

Defendant

Paul Stretford

Defendant

George Stuart Urquhart

Defendant

Procedural Posture

Civil / Case Management Conference; Application for Permission to Adduce Expert Evidence

Legal Issues

  1. 1 Whether defendants may adduce expert evidence on market practice and regulatory requirements regarding commission disclosure
  2. 2 Relevance of market practice to allegations of dishonesty, conspiracy, and limitation defences

Ratio Decidendi

Expert evidence on market practice is not admissible to determine the objective standard of dishonesty, but is admissible for the limited purposes of supporting a defence of honest belief in relation to conspiracy to injure by unlawful means and to limitation defences under section 32(2) of the Limitation Act 1980, where the defendant's state of mind is relevant.

Court Disposition

Application granted in part

Orders

  • Permission granted to defendants to adduce expert evidence on market practice and regulatory background for the limited purposes of supporting defences of honest belief in relation to conspiracy to injure by unlawful means and limitation under section 32(2) of the Limitation Act 1980.
  • Permission refused to adduce expert evidence for the purpose of establishing that defendants were not dishonest by reason of following market practice.