Recovery Partners GP Ltd & Anor v Rukhadze & Ors

Recovery Partners GP Ltd & Anor v Rukhadze & Ors

The defendants breached fiduciary duties owed to SCPI, RP, and Revoker by diverting the business opportunity to contract with Badri's family for recovery services, taking preparatory steps and acting disloyally prior to resignation. The opportunity remained that of the claimants, and defendants' actions constituted breach of confidence and conspiracy. Corporate defendants are liable in knowing receipt. Assignment of claims to RP is valid.

Parties
Claimant: Recovery Partners GP Limited; Claimant: Revoker LLP; Defendant: Mr Irakli Rukhadze; Defendant: Mr Igor Alexeev; Defendant: Mr Benjamin Marson; Defendant: Hunnewell Partners (UK) LLP; Defendant: Hunnewell Partners (BVI) Ltd; Defendant: Park Street (GP) Ltd; Defendant: Park Street (BR) Ltd; Defendant: Park Street (GS) Ltd; Defendant: Park Street (L) Ltd
Jurisdiction
England and Wales
Judgment Date
01 November 2018
Procedural Posture
Commercial Court Claim / Final Judgment After Trial
Outcome
Liability established for breach of fiduciary duty, breach of confidence, conspiracy, and knowing receipt. Relief to be determined at subsequent hearing.
Legal Topics
Fiduciary Duties, Corporate Opportunity, Breach of Confidence, Conspiracy, Knowing Receipt, Assignment, LLP Law
Company Law Equity Commercial Law Fiduciary Duties Corporate Opportunity Breach of Confidence Conspiracy Knowing Receipt +2 more

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Parties

Recovery Partners GP Limited

Claimant

Revoker LLP

Claimant

Mr Irakli Rukhadze

Defendant

Mr Igor Alexeev

Defendant

Mr Benjamin Marson

Defendant

Hunnewell Partners (UK) LLP

Defendant

Hunnewell Partners (BVI) Ltd

Defendant

Park Street (GP) Ltd

Defendant

Park Street (BR) Ltd

Defendant

Park Street (GS) Ltd

Defendant

Park Street (L) Ltd

Defendant

Procedural Posture

Commercial Court Claim / Final Judgment After Trial

Legal Issues

  1. 1 Whether defendants breached fiduciary duties by diverting a business opportunity
  2. 2 Whether defendants owed fiduciary duties to claimants
  3. 3 Whether defendants breached duties of confidence

Ratio Decidendi

The defendants breached fiduciary duties owed to SCPI, RP, and Revoker by diverting the business opportunity to contract with Badri's family for recovery services, taking preparatory steps and acting disloyally prior to resignation. The opportunity remained that of the claimants, and defendants' actions constituted breach of confidence and conspiracy. Corporate defendants are liable in knowing receipt. Assignment of claims to RP is valid.

Court Disposition

Liability established for breach of fiduciary duty, breach of confidence, conspiracy, and knowing receipt. Relief to be determined at subsequent hearing.

Orders

  • Declaration of breach of fiduciary duty against individual defendants
  • Declaration of breach of confidence