The Pensions Regulator v Payae Ltd & Ors

The Pensions Regulator v Payae Ltd & Ors

The court found that the fourth to seventh defendants were knowingly and dishonestly involved in the misuse and misappropriation of pension scheme assets, orchestrated by Mr Austin, who controlled the schemes and trustees. The defendants facilitated improper transfers, failed to exercise independent judgment, and received personal benefits. The court ordered them to restore the misappropriated assets and compensate for losses, including costs incurred by Dalriada Trustees Limited.

Parties
Claimant: The Pensions Regulator; Defendant: Payae Limited; Defendant: Estrella Confero Limited; Defendant: Friendly Pensions Limited; Defendant: David Austin; Defendant: Susan Dalton; Defendant: Alan Barratt; Defendant: Julian Hanson; Defendant: Dalriada Trustees Limited
Jurisdiction
England and Wales
Judgment Date
23 January 2018
Procedural Posture
Civil / Judgment After Trial
Outcome
Claim allowed; judgment for the claimant.
Legal Topics
Misuse of Pension Assets, Misappropriation, Dishonesty, Trustee Duties, Accessory Liability, Civil Procedure
Pensions Law Trust Law Equity Insolvency Misuse of Pension Assets Misappropriation Dishonesty Trustee Duties +2 more

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Parties

The Pensions Regulator

Claimant

Payae Limited

Defendant

Estrella Confero Limited

Defendant

Friendly Pensions Limited

Defendant

David Austin

Defendant

Susan Dalton

Defendant

Alan Barratt

Defendant

Julian Hanson

Defendant

Dalriada Trustees Limited

Defendant

Procedural Posture

Civil / Judgment After Trial

Legal Issues

  1. 1 Whether assets of occupational pension schemes were misused or misappropriated
  2. 2 Whether the defendants were involved in such misuse or misappropriation
  3. 3 Whether the defendants acted dishonestly

Ratio Decidendi

The court found that the fourth to seventh defendants were knowingly and dishonestly involved in the misuse and misappropriation of pension scheme assets, orchestrated by Mr Austin, who controlled the schemes and trustees. The defendants facilitated improper transfers, failed to exercise independent judgment, and received personal benefits. The court ordered them to restore the misappropriated assets and compensate for losses, including costs incurred by Dalriada Trustees Limited.

Court Disposition

Claim allowed; judgment for the claimant.

Orders

  • Defendants to restore misappropriated assets to the receiving schemes via Dalriada Trustees Limited.
  • Defendants to pay compensation for losses, including costs incurred by Dalriada Trustees Limited in protecting members' interests.