Brown & Ors v Innovatorone Plc & Ors

Brown & Ors v Innovatorone Plc & Ors

The court found that the Innovator Schemes were not fraudulent or a sham; claimants were validly made partners; there was no actionable breach of trust or fiduciary duty in the handling of subscription monies; no actionable misrepresentation or dishonest assistance was established; although the schemes contravened FSMA, monetary relief against third parties or individuals was not available; and all claims against the defendants failed except that the LLPs were found to have contravened FSMA and agreements were unenforceable by them, but no monetary relief was granted to claimants.

Parties
Claimant: Andrew Brown and others; Defendant: InnovatorOne Plc and others
Jurisdiction
England and Wales
Judgment Date
18 May 2012
Procedural Posture
Civil Commercial/tax/trusts / Final Judgment After Full Trial
Outcome
All claims by the claimants dismissed except that LLPs' agreements are unenforceable under FSMA; no monetary relief granted to claimants.
Legal Topics
Collective Investment Schemes, Breach of Trust, Misrepresentation, Dishonest Assistance, Negligence, Breach of Fiduciary Duty, FSMA Contraventions, Restitution, Conspiracy, Fraud
Commercial Law Tax Law Trusts Law Financial Regulation Collective Investment Schemes Breach of Trust Misrepresentation Dishonest Assistance +6 more

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 7 Authorities cited 15 Party arguments 2 Amounts and remedies 8
Sign in to unlock

Parties

Andrew Brown and others

Claimant

InnovatorOne Plc and others

Defendant

Procedural Posture

Civil Commercial/tax/trusts / Final Judgment After Full Trial

Legal Issues

  1. 1 Whether the Innovator Schemes were fraudulent or a sham; Whether claimants were validly made partners; Whether there was breach of trust or fiduciary duty in handling subscription monies; Whether actionable misrepresentations were made; Whether defendants dishonestly assisted breaches of trust; Whether the schemes contravened the Financial Services and Markets Act (FSMA); Whether claimants are entitled to restitution or damages; Whether any personal liability attaches to individual defendants or professional advisers

Ratio Decidendi

The court found that the Innovator Schemes were not fraudulent or a sham; claimants were validly made partners; there was no actionable breach of trust or fiduciary duty in the handling of subscription monies; no actionable misrepresentation or dishonest assistance was established; although the schemes contravened FSMA, monetary relief against third parties or individuals was not available; and all claims against the defendants failed except that the LLPs were found to have contravened FSMA and agreements were unenforceable by them, but no monetary relief was granted to claimants.

Court Disposition

All claims by the claimants dismissed except that LLPs' agreements are unenforceable under FSMA; no monetary relief granted to claimants.

Orders

  • All claims against defendants dismissed.
  • No order for monetary relief against any defendant.