Breitenfeld UK Ltd v Harrison & Ors

Breitenfeld UK Ltd v Harrison & Ors

Mr Harrison breached his fiduciary duties by facilitating and concealing the establishment and operation of a competing company by his close relatives, diverting business and assets, and acting in conflict with ForgeMet's interests. John Harrison and Gemma Harrison dishonestly assisted these breaches and breached their employment contracts by establishing and operating HSS while employed by ForgeMet, diverting work and assets, and acting against ForgeMet's interests. All defendants were liable for conspiracy to injure by unlawful means and conversion. The appropriate remedy is equitable compensation assessed at £90,500, with alternative damages assessed at £59,000.

Parties
Claimant: Breitenfeld UK Ltd; Defendant: Harold John Harrison; Defendant: John George Harrison; Defendant: Gemma Lucy Harrison; Defendant: Harrison Special Steels Limited
Jurisdiction
England and Wales
Judgment Date
20 February 2015
Procedural Posture
Civil / Judgment After Trial
Outcome
Judgment for the claimant. Defendants held liable for breach of fiduciary duty, dishonest assistance, breach of contract, conspiracy, and conversion. Remedies awarded as set out.
Legal Topics
Breach of Fiduciary Duty, Dishonest Assistance, Breach of Contract, Conspiracy to Injure by Unlawful Means, Conversion, Equitable Compensation, Damages
Company Law Employment Law Equity and Trusts Tort Law Breach of Fiduciary Duty Dishonest Assistance Breach of Contract Conspiracy to Injure by Unlawful Means +3 more

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Parties

Breitenfeld UK Ltd

Claimant

Harold John Harrison

Defendant

John George Harrison

Defendant

Gemma Lucy Harrison

Defendant

Harrison Special Steels Limited

Defendant

Procedural Posture

Civil / Judgment After Trial

Legal Issues

  1. 1 Did Mr Harrison breach his fiduciary duties to ForgeMet?
  2. 2 Did John Harrison and Gemma Harrison dishonestly assist in those breaches?
  3. 3 Did John Harrison and Gemma Harrison breach their contracts of employment?

Ratio Decidendi

Mr Harrison breached his fiduciary duties by facilitating and concealing the establishment and operation of a competing company by his close relatives, diverting business and assets, and acting in conflict with ForgeMet's interests. John Harrison and Gemma Harrison dishonestly assisted these breaches and breached their employment contracts by establishing and operating HSS while employed by ForgeMet, diverting work and assets, and acting against ForgeMet's interests. All defendants were liable for conspiracy to injure by unlawful means and conversion. The appropriate remedy is equitable compensation assessed at £90,500, with alternative damages assessed at £59,000.

Court Disposition

Judgment for the claimant. Defendants held liable for breach of fiduciary duty, dishonest assistance, breach of contract, conspiracy, and conversion. Remedies awarded as set out.

Orders

  • Mr Harrison to pay equitable compensation of £90,500 to ForgeMet.
  • John Harrison, Gemma Harrison, and HSS jointly and severally liable for the same sum for dishonest assistance.