Daido Asia Japan Company Ltd v. Rothen [2001] EWHC Ch 163 (24th July, 2001)

Daido Asia Japan Company Ltd v. Rothen [2001] EWHC Ch 163 (24th July, 2001)

Mrs Rothen is personally liable in deceit because she knowingly procured VIB to make false representations to Daido, inducing payment when she knew F&M would not supply the goods. The ex turpi causa doctrine does not bar Daido's claim as its wrongdoing was incidental, not foundational, to the cause of action. Despite Standard Chartered Bank v. Pakistan National Shipping Corp. (No.2), Mrs Rothen's direct procurement of the deceit renders her personally liable.

Citation
[2001] EWHC Ch 163
Parties
Claimant: Daido; Defendant: Mrs Rothen
Jurisdiction
England and Wales
Procedural Posture
Civil / Judgment After Trial
Outcome
Claim allowed
Legal Topics
Deceit, Director's Personal Liability, Ex Turpi Causa, Fraudulent Misrepresentation
Tort Company Law Deceit Director's Personal Liability Ex Turpi Causa Fraudulent Misrepresentation

Case Brief

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Parties

Daido

Claimant

Mrs Rothen

Defendant

Procedural Posture

Civil / Judgment After Trial

Legal Issues

  1. 1 Whether Mrs Rothen is personally liable in deceit for false representations made to Daido regarding the supply of tea by F&M.
  2. 2 Whether the ex turpi causa doctrine bars Daido's claim due to its own involvement in deceiving F&M.
  3. 3 Whether a director can be personally liable for deceit committed on behalf of a company.

Ratio Decidendi

Mrs Rothen is personally liable in deceit because she knowingly procured VIB to make false representations to Daido, inducing payment when she knew F&M would not supply the goods. The ex turpi causa doctrine does not bar Daido's claim as its wrongdoing was incidental, not foundational, to the cause of action. Despite Standard Chartered Bank v. Pakistan National Shipping Corp. (No.2), Mrs Rothen's direct procurement of the deceit renders her personally liable.

Court Disposition

Claim allowed

Orders

  • Mrs Rothen is liable to Daido in damages for deceit.