Hurst & Ors v Hone & Ors [2010] EWHC 1159 (QB) (27 May 2010)

Hurst & Ors v Hone & Ors [2010] EWHC 1159 (QB) (27 May 2010)

The court found that Mark Cordner made false representations to the claimants regarding the security of their investments and the status of the Aloha Royal development, and failed to ensure compliance with Spanish legal requirements for purchaser protection. Cordner was held liable for deceit and negligent misstatement, as well as for breach of trust and fiduciary duty. The court rejected Cordner's claim that he was merely an innocent agent, finding he had sufficient involvement and knowledge to be liable. The tracing claim against Mark and Sandra Cordner succeeded to the extent that misapplied funds could be identified in property acquired with those funds.

Citation
[2010] EWHC 1159 (QB)
Parties
Claimant: Sir Geoffrey Hurst; Claimant: David Barkley; Claimant: Darren Innocent; Claimant: Terence Hopley; Claimant: Paul Kenyon; Claimant: Martin Roberts; Claimant: Verna Roberts; Defendant: Michael Hone; Defendant: Mark Cordner; Defendant: Royal Marbella Group of Companies SL; Defendant: Wilchester Holdings Inc; Defendant: Grosvenor Square Investments Inc; Defendant: Azul Properties SL; Defendant: Sandra Cordner
Jurisdiction
England and Wales
Judgment Date
27 May 2010
Procedural Posture
Civil / High Court Trial on Liability and Limited Quantum Issues
Outcome
Judgment for the claimants against Mark Cordner and Sandra Cordner (on tracing claim); other claims stayed or not pursued.
Legal Topics
Deceit, Negligent Misstatement, Breach of Trust, Breach of Fiduciary Duty, Conspiracy, Partnership, Tracing, Spanish Property Law
Civil Fraud Property Law Trusts and Equity Deceit Negligent Misstatement Breach of Trust Breach of Fiduciary Duty Conspiracy +3 more

Case Brief

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Parties

Sir Geoffrey Hurst

Claimant

David Barkley

Claimant

Darren Innocent

Claimant

Terence Hopley

Claimant

Paul Kenyon

Claimant

Martin Roberts

Claimant

Verna Roberts

Claimant

Michael Hone

Defendant

Mark Cordner

Defendant

Royal Marbella Group of Companies SL

Defendant

Wilchester Holdings Inc

Defendant

Grosvenor Square Investments Inc

Defendant

Azul Properties SL

Defendant

Sandra Cordner

Defendant

Procedural Posture

Civil / High Court Trial on Liability and Limited Quantum Issues

Legal Issues

  1. 1 Whether Mark Cordner made false representations to claimants inducing investment in Aloha Royal development
  2. 2 Whether Cordner acted deceitfully or negligently in making such representations
  3. 3 Whether Cordner breached trust or fiduciary duties owed to claimants

Ratio Decidendi

The court found that Mark Cordner made false representations to the claimants regarding the security of their investments and the status of the Aloha Royal development, and failed to ensure compliance with Spanish legal requirements for purchaser protection. Cordner was held liable for deceit and negligent misstatement, as well as for breach of trust and fiduciary duty. The court rejected Cordner's claim that he was merely an innocent agent, finding he had sufficient involvement and knowledge to be liable. The tracing claim against Mark and Sandra Cordner succeeded to the extent that misapplied funds could be identified in property acquired with those funds.

Court Disposition

Judgment for the claimants against Mark Cordner and Sandra Cordner (on tracing claim); other claims stayed or not pursued.

Orders

  • Mark Cordner to pay damages to claimants for deceit, negligent misstatement, breach of trust, and breach of fiduciary duty.
  • Mark and Sandra Cordner to account for and pay over traced funds or value of property acquired with misapplied funds.