Armstrong DLW GmbH v Winnington Networks Ltd [2012] EWHC 10 (Ch) (11 January 2012)

Armstrong DLW GmbH v Winnington Networks Ltd [2012] EWHC 10 (Ch) (11 January 2012)

European Union Allowances (EUAs) are intangible property under English law. Armstrong retained legal title to the EUAs, which were transferred to Winnington as a result of fraud. Armstrong is entitled to a proprietary restitutionary claim for the value of the EUAs against Winnington. Winnington was not a bona fide purchaser for value without notice because it failed to make adequate inquiries and was on constructive notice of the risk of fraud. The defence of change of position is not available to Winnington due to lack of good faith. Armstrong is entitled to recover the value of the EUAs and the profit made by Winnington on their onward sale.

Citation
[2012] EWHC 10 (Ch)
Parties
Claimant: Armstrong DLW GmbH; Defendant: Winnington Networks Ltd
Jurisdiction
England and Wales
Judgment Date
11 January 2012
Procedural Posture
High Court Chancery Division Civil Claim / Judgment After Trial
Outcome
Judgment for the Claimant
Legal Topics
Unjust Enrichment, Proprietary Restitution, Knowing Receipt, Intangible Property, EU Emissions Trading Scheme, Change of Position Defence, Bona Fide Purchase Defence
Commercial Law Restitution Equity Property Law Unjust Enrichment Proprietary Restitution Knowing Receipt Intangible Property +3 more

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Parties

Armstrong DLW GmbH

Claimant

Winnington Networks Ltd

Defendant

Procedural Posture

High Court Chancery Division Civil Claim / Judgment After Trial

Legal Issues

  1. 1 Whether European Union Allowances (EUAs) constitute property and their legal characterisation
  2. 2 Whether Armstrong has a proprietary restitutionary claim or a claim for unjust enrichment against Winnington
  3. 3 Whether Winnington's defences of bona fide purchase for value without notice and change of position are available

Ratio Decidendi

European Union Allowances (EUAs) are intangible property under English law. Armstrong retained legal title to the EUAs, which were transferred to Winnington as a result of fraud. Armstrong is entitled to a proprietary restitutionary claim for the value of the EUAs against Winnington. Winnington was not a bona fide purchaser for value without notice because it failed to make adequate inquiries and was on constructive notice of the risk of fraud. The defence of change of position is not available to Winnington due to lack of good faith. Armstrong is entitled to recover the value of the EUAs and the profit made by Winnington on their onward sale.

Court Disposition

Judgment for the Claimant

Orders

  • Winnington to pay Armstrong the value of 21,000 EUAs at the relevant date (€267,645) plus the profit from the onward sale (€4,855)