Dadourian Group International Inc & Ors v Simms & Ors [2006] EWHC 2973 (Ch) (24 November 2006)

Dadourian Group International Inc & Ors v Simms & Ors [2006] EWHC 2973 (Ch) (24 November 2006)

The court found that Jack and Helga Dadourian were the controlling minds behind Charlton, which was used as a façade to perpetrate fraud and evade liabilities. The evidence established that the defendants engaged in fraudulent misrepresentation and conspiracy, and that the corporate veil should be lifted to hold Jack and Helga liable for the arbitration awards. The findings of the arbitrator were not strictly binding on the defendants, but the court independently found the same core facts and liability. The claimants are entitled to recover damages and costs from Jack and Helga as well as from Paul Simms and Selim Rahman for their roles in the fraud.

Citation
[2006] EWHC 2973 (Ch)
Parties
Claimant: Dadourian Group International Inc.; Claimant: Alex Dadourian; Claimant: Haig Dadourian; Defendant: Paul Simms; Defendant: Selim Rahman; Defendant: Jack Dadourian; Defendant: Helga Dadourian
Jurisdiction
England and Wales
Judgment Date
24 November 2006
Procedural Posture
High Court Chancery Division Civil Claim / Post Trial Judgment
Outcome
Judgment for the claimants
Legal Topics
Fraudulent Misrepresentation, Conspiracy, Breach of Contract, Lifting the Corporate Veil, Res Judicata, Arbitration Enforcement
Commercial Law Contract Law Fraud Equity and Trusts Fraudulent Misrepresentation Conspiracy Breach of Contract Lifting the Corporate Veil +2 more

Case Brief

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Parties

Dadourian Group International Inc.

Claimant

Alex Dadourian

Claimant

Haig Dadourian

Claimant

Paul Simms

Defendant

Selim Rahman

Defendant

Jack Dadourian

Defendant

Helga Dadourian

Defendant

Procedural Posture

High Court Chancery Division Civil Claim / Post Trial Judgment

Legal Issues

  1. 1 Whether the defendants are liable for fraudulent misrepresentation and conspiracy
  2. 2 Whether Jack and Helga Dadourian are liable for breach of contract as alter egos of Charlton
  3. 3 Whether the corporate veil of Charlton should be lifted

Ratio Decidendi

The court found that Jack and Helga Dadourian were the controlling minds behind Charlton, which was used as a façade to perpetrate fraud and evade liabilities. The evidence established that the defendants engaged in fraudulent misrepresentation and conspiracy, and that the corporate veil should be lifted to hold Jack and Helga liable for the arbitration awards. The findings of the arbitrator were not strictly binding on the defendants, but the court independently found the same core facts and liability. The claimants are entitled to recover damages and costs from Jack and Helga as well as from Paul Simms and Selim Rahman for their roles in the fraud.

Court Disposition

Judgment for the claimants

Orders

  • Jack and Helga Dadourian are jointly and severally liable with Charlton for the arbitration awards and costs.
  • Paul Simms and Selim Rahman are liable for fraudulent misrepresentation and conspiracy.