Hemsley & Anor v Graham & Ors [2013] EWHC 2232 (Ch) (31 July 2013)

Hemsley & Anor v Graham & Ors [2013] EWHC 2232 (Ch) (31 July 2013)

The defendants, acting in concert, made fraudulent misrepresentations and fabricated documents to induce the claimants to invest in WBL. The evidence established that the representations as to WBL's business, loan book, and financial position were false and made dishonestly. The defendants orchestrated cross-firing transactions and produced false documents, including loan agreements and valuations, to deceive the claimants and others. The claimants relied on these representations and suffered loss. The defendants are liable for deceit, conspiracy, and breach of warranty.

Citation
[2013] EWHC 2232 (Ch)
Parties
Claimant: Stephen Hemsley; Claimant: RBC Trustees (CI) Ltd; Claimant: Capital For Enterprise Fund LP; Claimant: Maven Capital Partners UK LLP; Claimant: CFE A General Partner Ltd; Defendant: Peter Graham; Defendant: Mohammad Ishaq Malik; Defendant: Sunil Bance; Defendant: Antonia Graham/Jones; Defendant: Wey Bridging Ltd (In Liquidation); Defendant: Christopher Arnold; Defendant: Sara Meurisse
Jurisdiction
England and Wales
Judgment Date
31 July 2013
Procedural Posture
Civil Fraud/chancery / Final Judgment After Trial
Outcome
Judgment for the claimants
Legal Topics
Fraudulent Misrepresentation, Deceit, Conspiracy, Breach of Warranty, Misrepresentation Act 1967, Directors' Duties, Insolvency, Civil Remedies
Fraud Company Law Equity and Trusts Banking and Finance Fraudulent Misrepresentation Deceit Conspiracy Breach of Warranty +4 more

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Parties

Stephen Hemsley

Claimant

RBC Trustees (CI) Ltd

Claimant

Capital For Enterprise Fund LP

Claimant

Maven Capital Partners UK LLP

Claimant

CFE A General Partner Ltd

Claimant

Peter Graham

Defendant

Mohammad Ishaq Malik

Defendant

Sunil Bance

Defendant

Antonia Graham/Jones

Defendant

Wey Bridging Ltd (In Liquidation)

Defendant

Christopher Arnold

Defendant

Sara Meurisse

Defendant

Procedural Posture

Civil Fraud/chancery / Final Judgment After Trial

Legal Issues

  1. 1 Whether the defendants made fraudulent misrepresentations to induce the claimants to invest in Wey Bridging Ltd (WBL)
  2. 2 Whether the defendants conspired to defraud the claimants
  3. 3 Whether there was a breach of share warranties

Ratio Decidendi

The defendants, acting in concert, made fraudulent misrepresentations and fabricated documents to induce the claimants to invest in WBL. The evidence established that the representations as to WBL's business, loan book, and financial position were false and made dishonestly. The defendants orchestrated cross-firing transactions and produced false documents, including loan agreements and valuations, to deceive the claimants and others. The claimants relied on these representations and suffered loss. The defendants are liable for deceit, conspiracy, and breach of warranty.

Court Disposition

Judgment for the claimants

Orders

  • Defendants held liable for deceit, conspiracy, and breach of warranty
  • Claimants entitled to recover sums advanced and further relief as determined by the court