Daltel Europe Ltd & Ors v Makki & Ors [2005] EWHC 2258 (Ch) (21 October 2005)

Daltel Europe Ltd & Ors v Makki & Ors [2005] EWHC 2258 (Ch) (21 October 2005)

Mr Makki had no real prospect of establishing that Daltel USA LLC was entitled to use the interconnect services of Pacifica and Globenet or to retain the sums paid by Arbinet. The evidence showed that Daltel USA LLC was used as a front for Mr Makki's misappropriation of funds, and there was no basis for implied contracts or consent. Accordingly, summary judgment was granted for the sums claimed.

Citation
[2005] EWHC 2258 (Ch)
Parties
Claimant: Daltel Europe Limited (In Liquidation); Claimant: James Earp, Robert Harry Pick and Nicholas Stewart Wood (The Liquidators of Daltel Europe Limited); Claimant: Pacifica Limited (In Liquidation); Claimant: James Earp, Robert Harry Pick and Nicholas Stewart Wood (The Liquidators of Pacifica Limited Europe Limited); Claimant: Globenet Limited (In Liquidation); Claimant: James Earp and Nicholas Stewart Wood (The Liquidators of Globenet (UK) Limited); Defendant: Hassan Ali Makki; Defendant: Weybridge Management LLC; Defendant: Daltel USA LLC
Jurisdiction
England and Wales
Judgment Date
21 October 2005
Procedural Posture
Civil / Summary Judgment Application Under CPR Part 24
Outcome
Summary judgment granted for the claimants against Mr Makki for the sums claimed.
Legal Topics
Summary Judgment, Constructive Trust, Breach of Fiduciary Duty, Fraudulent Trading, Wrongful Trading
Insolvency Company Law Trusts Civil Procedure Summary Judgment Constructive Trust Breach of Fiduciary Duty Fraudulent Trading +1 more

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Parties

Daltel Europe Limited (In Liquidation)

Claimant

James Earp, Robert Harry Pick and Nicholas Stewart Wood (The Liquidators of Daltel Europe Limited)

Claimant

Pacifica Limited (In Liquidation)

Claimant

James Earp, Robert Harry Pick and Nicholas Stewart Wood (The Liquidators of Pacifica Limited Europe Limited)

Claimant

Globenet Limited (In Liquidation)

Claimant

James Earp and Nicholas Stewart Wood (The Liquidators of Globenet (UK) Limited)

Claimant

Hassan Ali Makki

Defendant

Weybridge Management LLC

Defendant

Daltel USA LLC

Defendant

Procedural Posture

Civil / Summary Judgment Application Under CPR Part 24

Legal Issues

  1. 1 Whether Mr Makki misappropriated funds belonging to Pacifica Limited and Globenet (UK) Limited
  2. 2 Whether Daltel USA LLC had any entitlement to sums paid by Arbinet for interconnect services
  3. 3 Whether Mr Makki breached fiduciary duties as director of insolvent companies

Ratio Decidendi

Mr Makki had no real prospect of establishing that Daltel USA LLC was entitled to use the interconnect services of Pacifica and Globenet or to retain the sums paid by Arbinet. The evidence showed that Daltel USA LLC was used as a front for Mr Makki's misappropriation of funds, and there was no basis for implied contracts or consent. Accordingly, summary judgment was granted for the sums claimed.

Court Disposition

Summary judgment granted for the claimants against Mr Makki for the sums claimed.

Orders

  • Mr Makki to pay US $3,650,000 and US $1,413,929.35 to the claimants.
  • Pending payment, Mr Makki to hold all assets acquired with those sums on constructive trust for Pacifica and Globenet.