Global Energy Horizons Corporation v Gray

Global Energy Horizons Corporation v Gray

The value of the assets received by the defendant as a result of his breaches of fiduciary duty as at 28 July 2015 is nil, because the relevant companies were burdened with debt, not trading profitably, and had no realistic prospect of generating income; the expert evidence based on comparable transactions and optimistic business plans is unreliable.

Parties
Claimant: Global Energy Horizons Corporation; Defendant: Robert Gresham Gray
Jurisdiction
England and Wales
Judgment Date
21 May 2019
Procedural Posture
Civil Fiduciary Duty / Valuation / Judgment After Valuation Hearing
Outcome
Claim for value of assets dismissed; value assessed at nil.
Legal Topics
Breach of Fiduciary Duty, Valuation of Shares, Remedies for Breach of Duty, Expert Evidence, Corporate Structure
Equity Company Law Commercial Law Breach of Fiduciary Duty Valuation of Shares Remedies for Breach of Duty Expert Evidence Corporate Structure

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Parties

Global Energy Horizons Corporation

Claimant

Robert Gresham Gray

Defendant

Procedural Posture

Civil Fiduciary Duty / Valuation / Judgment After Valuation Hearing

Legal Issues

  1. 1 What is the value of the assets received by the defendant as a result of breaches of fiduciary duty as at 28 July 2015?
  2. 2 What is the appropriate method for valuing the relevant shareholdings and interests?
  3. 3 Should the court rely on expert evidence based on comparable transactions or discounted cash flow models?

Ratio Decidendi

The value of the assets received by the defendant as a result of his breaches of fiduciary duty as at 28 July 2015 is nil, because the relevant companies were burdened with debt, not trading profitably, and had no realistic prospect of generating income; the expert evidence based on comparable transactions and optimistic business plans is unreliable.

Court Disposition

Claim for value of assets dismissed; value assessed at nil.

Orders

  • The value of the assets for which the defendant is liable to account is nil as at 28 July 2015.