London Capital & Finance Plc (In Administration) v Michael Andrew Thomson

London Capital & Finance Plc (In Administration) v Michael Andrew Thomson

Declarations reflecting the judgment are appropriate and useful for enforcement. The first defendant is liable for the full contribution due to central involvement and knowledge of the fraud. The fifth defendant and related parties are liable for 75% of the full contribution, reflecting significant but lesser culpability. Quantum of contribution is based on principal sums owed to bondholders, with interest and realisations to be addressed in future orders. Equitable compensation for dishonest assistance is set at £211 million, comprising interest and commissions, without deduction for realisations. Disclosure and accounting orders are to be made without the qualifications sought by the...

Parties
Claimant: London Capital & Finance plc (in administration); Claimant: Finbarr O’Connell, Adam Stephens, Henry Shinners, Colin Hardman and Geoffrey Rowley (joint administrators of London Capital & Finance plc (in administration)); Claimant: London Oil & Gas Limited (in administration); Claimant: Finbarr O’Connell, Adam Stephens, Colin Hardman and Lane Bednash (joint administrators of London Oil & Gas Limited (in administration)); Defendant: Michael Andrew Thomson; Defendant: Simon Hume-Kendall; Defendant: Elten Barker; Defendant: Spencer Golding; Defendant: Paul Careless; Defendant: Surge Financial Limited; Defendant: John Russell-Murphy; Defendant: Robert Sedgwick; Defendant: Grosvenor Park Intelligent Investments Limited; Defendant: Helen Hume-Kendall
Jurisdiction
England and Wales
Judgment Date
14 January 2025
Procedural Posture
Civil / Post Judgment, Determination of Declarations and Quantum of Contributions
Outcome
Declarations granted; contribution and compensation orders made; disclosure and accounting orders made as drafted.
Legal Topics
Fraudulent Trading, Breach of Fiduciary Duty, Dishonest Assistance, Equitable Compensation, Contribution Orders, Declaratory Relief
Insolvency Company Law Equity Fraudulent Trading Breach of Fiduciary Duty Dishonest Assistance Equitable Compensation Contribution Orders +1 more

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Parties

London Capital & Finance plc (in administration)

Claimant

Finbarr O’Connell, Adam Stephens, Henry Shinners, Colin Hardman and Geoffrey Rowley (joint administrators of London Capital & Finance plc (in administration))

Claimant

London Oil & Gas Limited (in administration)

Claimant

Finbarr O’Connell, Adam Stephens, Colin Hardman and Lane Bednash (joint administrators of London Oil & Gas Limited (in administration))

Claimant

Michael Andrew Thomson

Defendant

Simon Hume-Kendall

Defendant

Elten Barker

Defendant

Spencer Golding

Defendant

Paul Careless

Defendant

Surge Financial Limited

Defendant

John Russell-Murphy

Defendant

Robert Sedgwick

Defendant

Grosvenor Park Intelligent Investments Limited

Defendant

Helen Hume-Kendall

Defendant

Procedural Posture

Civil / Post Judgment, Determination of Declarations and Quantum of Contributions

Legal Issues

  1. 1 Whether to grant declarations reflecting the judgment findings
  2. 2 Appropriate quantum and apportionment of contribution orders under section 246ZA Insolvency Act 1986
  3. 3 Assessment of equitable compensation for breach of duty and dishonest assistance

Ratio Decidendi

Declarations reflecting the judgment are appropriate and useful for enforcement. The first defendant is liable for the full contribution due to central involvement and knowledge of the fraud. The fifth defendant and related parties are liable for 75% of the full contribution, reflecting significant but lesser culpability. Quantum of contribution is based on principal sums owed to bondholders, with interest and realisations to be addressed in future orders. Equitable compensation for dishonest assistance is set at £211 million, comprising interest and commissions, without deduction for realisations. Disclosure and accounting orders are to be made without the qualifications sought by the...

Court Disposition

Declarations granted; contribution and compensation orders made; disclosure and accounting orders made as drafted.

Orders

  • Declarations as per draft order granted.
  • First defendant to pay full contribution of principal sums (£237 million) on joint and several basis.