Trustor AB Ltd (Swedish Company) v Smallbone & Ors [2000] EWCA Civ 150 (9 May 2000)

Trustor AB Ltd (Swedish Company) v Smallbone & Ors [2000] EWCA Civ 150 (9 May 2000)

Introcom and Mr Smallbone are jointly and severally liable to account for and repay the sums of Trustor money they respectively received as constructive trustees; alleged recoveries not yet at Trustor's disposal do not reduce their liability. Section 5 of the Swedish Companies Act does not affect the English law...

Source-derived case information.

Citation
[2000] EWCA Civ 150
Parties
Claimant: Trustor A.B.; Defendant: Mr Smallbone; Defendant: Introcom (International) Ltd; Defendant: Guinness Management Ltd (GML); Defendant: M&A Financial Services Ltd (M&A)
Jurisdiction
England and Wales
Judgment Date
09 May 2000
Procedural Posture
Civil Appeal / Post Summary Judgment, Appellate Review
Outcome
Appeal allowed in part; restitutionary remedies restored; interim payment order against Mr Smallbone set aside; permission to appeal granted to Mr Smallbone and Introcom; other appeals dismissed.
Legal Topics
Breach of Director's Duty, Constructive Trust, Restitutionary Remedies, Damages Assessment, Joint and Several Liability, Misappropriation of Company Funds
Company Law Restitution Conflict of Laws Breach of Director's Duty Constructive Trust Restitutionary Remedies Damages Assessment Joint and Several Liability +1 more

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Parties

Trustor A.B.

Claimant

Mr Smallbone

Defendant

Introcom (International) Ltd

Defendant

Guinness Management Ltd (GML)

Defendant

M&A Financial Services Ltd (M&A)

Defendant

Procedural Posture

Civil Appeal / Post Summary Judgment, Appellate Review

Legal Issues

  1. 1 Whether restitutionary remedies against Introcom and Mr Smallbone should be reduced by alleged recoveries by Trustor
  2. 2 Whether Trustor's claims are affected by Section 5 of the Swedish Companies Act
  3. 3 Whether Trustor is entitled to summary judgment for repayment of misappropriated funds

Ratio Decidendi

Introcom and Mr Smallbone are jointly and severally liable to account for and repay the sums of Trustor money they respectively received as constructive trustees; alleged recoveries not yet at Trustor's disposal do not reduce their liability. Section 5 of the Swedish Companies Act does not affect the English law constructive trust obligations. Damages for breach of duty must be assessed taking into account actual recoveries.

Court Disposition

Appeal allowed in part; restitutionary remedies restored; interim payment order against Mr Smallbone set aside; permission to appeal granted to Mr Smallbone and Introcom; other appeals dismissed.

Orders

  • Paragraphs 3 and 4 of Master Bowman's order of 13 October 1998 restored.
  • Paragraph 2 of Master Bowman's order of 13 October 1998 restored, with £426,439 liability joint and several between Introcom and Mr Smallbone.