Bracken Partners Ltd v Gutteridge & Ors

Bracken Partners Ltd v Gutteridge & Ors

EGL is entitled to a declaration that Ms Smalley holds 39/40ths of the property on trust for EGL, and to an order for sale, as the funds used were misappropriated from EGL in breach of fiduciary duty by Mr Gutteridge. Summary judgment is granted for £62,342 against Mr Gutteridge for further misappropriated sums, as...

Source-derived case information.

Parties
Claimant: Bracken Partners Limited; Defendant: Graham Martin Gutteridge; Defendant: Sariah Downs Smalley; Defendant: GMG Management Limited; Defendant (later Joined as Claimant): Eye Group Limited
Jurisdiction
England and Wales
Judgment Date
31 March 2003
Procedural Posture
Derivative and Direct Company Proceedings / Summary Judgment Application
Outcome
Summary judgment granted for claimant; declaration of trust and order for sale of property; money judgment for £62,342 against Mr Gutteridge; directions and further submissions reserved.
Legal Topics
Breach of Fiduciary Duty, Tracing and Proprietary Claims, Summary Judgment, Set Off in Insolvency, Derivative Actions
Company Law Equity and Trusts Civil Procedure Breach of Fiduciary Duty Tracing and Proprietary Claims Summary Judgment Set Off in Insolvency Derivative Actions

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Parties

Bracken Partners Limited

Claimant

Graham Martin Gutteridge

Defendant

Sariah Downs Smalley

Defendant

GMG Management Limited

Defendant

Eye Group Limited

Defendant (later Joined as Claimant)

Procedural Posture

Derivative and Direct Company Proceedings / Summary Judgment Application

Legal Issues

  1. 1 Whether Mr Gutteridge breached fiduciary duties to EGL by misappropriating company funds
  2. 2 Whether Ms Smalley holds property on trust for EGL due to receipt of misappropriated funds
  3. 3 Whether EGL is entitled to trace and recover funds used to purchase property in Ms Smalley's name

Ratio Decidendi

EGL is entitled to a declaration that Ms Smalley holds 39/40ths of the property on trust for EGL, and to an order for sale, as the funds used were misappropriated from EGL in breach of fiduciary duty by Mr Gutteridge. Summary judgment is granted for £62,342 against Mr Gutteridge for further misappropriated sums, as there is no credible defence. Set-off is not available for proprietary claims in insolvency. The settlement agreement did not complete and is not a bar to relief.

Court Disposition

Summary judgment granted for claimant; declaration of trust and order for sale of property; money judgment for £62,342 against Mr Gutteridge; directions and further submissions reserved.

Orders

  • Declaration that Ms Smalley holds 39/40ths of 52 Chatsworth Gardens, London W3 9LW on trust for EGL and herself
  • Order for sale of the property under section 14 of the Trusts of Land and Appointment of Trustees Act 1986