Weavering Capital (UK) Ltd & Anor v Peterson & Ors

Weavering Capital (UK) Ltd & Anor v Peterson & Ors

Mr Peterson perpetrated fraud and breached fiduciary duties by using sham swaps to manipulate the Macro fund's NAV, misleading investors and causing loss. Mrs Peterson and Mr Dabhia were negligent in failing to prevent or detect the fraud and in approving or participating in misleading representations. Mr Platt was not dishonest but was negligent in his duties. Payments to CNB were transactions at an undervalue and recoverable. Payments to EFG Bank and others were recoverable as knowing receipt or under s. 423. The claimants are entitled to an account of profits for salary and benefits paid to the defendants due to breaches of fiduciary duty and negligence.

Parties
Claimant: Weavering Capital (UK) Limited (in liquidation); Claimant: Geoffrey Bouchier and Paul Clark (liquidators); Defendant: Ulf Magnus Michael Peterson; Defendant: Amanda Dawn Peterson; Defendant: Cayman National Bank and Trust Company (Isle of Man) Limited; Defendant: AB; Defendant: CD; Defendant: EF; Defendant: GH; Defendant: Markus Wallin; Defendant: Charanpreet Dabhia; Defendant: Edward Platt
Jurisdiction
England and Wales
Judgment Date
30 May 2012
Procedural Posture
Civil / Final Judgment
Outcome
Claim allowed in part
Legal Topics
Directors' Duties, Fraud, Negligence, Dishonest Assistance, Breach of Fiduciary Duty, Transactions at Undervalue, Restitution, Misrepresentation, Tracing, Contribution
Company Law Insolvency Law Tort Law Trusts Law Directors' Duties Fraud Negligence Dishonest Assistance +6 more

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Parties

Weavering Capital (UK) Limited (in liquidation)

Claimant

Geoffrey Bouchier and Paul Clark (liquidators)

Claimant

Ulf Magnus Michael Peterson

Defendant

Amanda Dawn Peterson

Defendant

Cayman National Bank and Trust Company (Isle of Man) Limited

Defendant

AB

Defendant

CD

Defendant

EF

Defendant

GH

Defendant

Markus Wallin

Defendant

Charanpreet Dabhia

Defendant

Edward Platt

Defendant

Procedural Posture

Civil / Final Judgment

Legal Issues

  1. 1 Whether Mr Peterson perpetrated fraud and breached fiduciary duties as director of WCUK.
  2. 2 Whether Mrs Peterson breached her duties as director of WCUK by negligence.
  3. 3 Whether Mr Dabhia breached his duties as director of WCUK and was negligent.

Ratio Decidendi

Mr Peterson perpetrated fraud and breached fiduciary duties by using sham swaps to manipulate the Macro fund's NAV, misleading investors and causing loss. Mrs Peterson and Mr Dabhia were negligent in failing to prevent or detect the fraud and in approving or participating in misleading representations. Mr Platt was not dishonest but was negligent in his duties. Payments to CNB were transactions at an undervalue and recoverable. Payments to EFG Bank and others were recoverable as knowing receipt or under s. 423. The claimants are entitled to an account of profits for salary and benefits paid to the defendants due to breaches of fiduciary duty and negligence.

Court Disposition

Claim allowed in part

Orders

  • Judgment for the claimants against Mr Peterson for fraud, breach of fiduciary duty, and knowing receipt.
  • Judgment for the claimants against Mrs Peterson and Mr Dabhia for negligence and breach of duty.