Lindsay v O'Loughnane

Lindsay v O'Loughnane

The defendant knowingly made implied and express fraudulent misrepresentations regarding the solvency and legitimacy of FX Solutions and Global FX, inducing the claimant to transfer £565,000 for foreign exchange transactions. These misrepresentations were continuing and never corrected. The claimant relied on them and suffered loss. The defendant is personally liable in deceit. Piercing the corporate veil is not appropriate as the wrongdoing was not dehors the company.

Parties
Claimant: Sean Lindsay; Defendant: Jared O’Loughnane
Jurisdiction
England and Wales
Judgment Date
18 March 2010
Procedural Posture
Civil / Judgment
Outcome
Claim in deceit succeeds. Defendant personally liable.
Legal Topics
Deceit, Fraudulent Misrepresentation, Piercing the Corporate Veil, Corporate Insolvency
Tort Company Law Deceit Fraudulent Misrepresentation Piercing the Corporate Veil Corporate Insolvency

Case Brief

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Parties

Sean Lindsay

Claimant

Jared O’Loughnane

Defendant

Procedural Posture

Civil / Judgment

Legal Issues

  1. 1 Whether the defendant committed the tort of deceit by fraudulent misrepresentation
  2. 2 Whether the defendant is personally liable for the debts of FX Solutions and Global FX
  3. 3 Whether the corporate veil should be pierced

Ratio Decidendi

The defendant knowingly made implied and express fraudulent misrepresentations regarding the solvency and legitimacy of FX Solutions and Global FX, inducing the claimant to transfer £565,000 for foreign exchange transactions. These misrepresentations were continuing and never corrected. The claimant relied on them and suffered loss. The defendant is personally liable in deceit. Piercing the corporate veil is not appropriate as the wrongdoing was not dehors the company.

Court Disposition

Claim in deceit succeeds. Defendant personally liable.

Orders

  • Judgment for damages to be assessed, with interest from 5 September 2008 on £315,000 and from 10 September 2008 on the balance.
  • Interim payment ordered representing £565,000 plus interest less 18% of £565,000.