CMC Holdings Ltd -v- Forster and Ors [2017] JRC 014A (17 January 2017)

CMC Holdings Ltd -v- Forster and Ors [2017] JRC 014A (17 January 2017)

The second and third defendants have not established a prima facie case to join the Core Defaulting Directors as third parties on the basis of joint tortfeasorship under Article 3(1) of the 1960 Law, nor on the basis of conspiracy, as the necessary elements are not pleaded. The doctrine of unjust enrichment does not provide a basis for contribution in these circumstances, and the court's inherent jurisdiction cannot be used to create such a right. The applications to join third parties are refused.

Citation
[2017] JRC 014A
Parties
Plaintiff: CMC; First Defendant: Forster; Second Defendant: RBC; Third Defendant: Regent; Proposed Third Party: Jack Mordejay Benzimra (Estate); Proposed Third Party: Prahlai Kalyani Jani (Estate); Proposed Third Party: Charles Njonjo; Proposed Third Party: Jeremiah Kiereini
Jurisdiction
Jersey
Judgment Date
17 January 2017
Procedural Posture
Civil / Interlocutory Application for Joinder of Third Parties
Outcome
Applications to join third parties refused.
Legal Topics
Dishonest Assistance, Contribution and Indemnity, Joinder of Third Parties, Unjust Enrichment, Conspiracy, Fiduciary Duties
Equity Trusts Civil Procedure Dishonest Assistance Contribution and Indemnity Joinder of Third Parties Unjust Enrichment Conspiracy +1 more

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Parties

CMC

Plaintiff

Forster

First Defendant

RBC

Second Defendant

Regent

Third Defendant

Jack Mordejay Benzimra (Estate)

Proposed Third Party

Prahlai Kalyani Jani (Estate)

Proposed Third Party

Charles Njonjo

Proposed Third Party

Jeremiah Kiereini

Proposed Third Party

Procedural Posture

Civil / Interlocutory Application for Joinder of Third Parties

Legal Issues

  1. 1 Whether the second and third defendants can join the Core Defaulting Directors as third parties for contribution or indemnity based on claims of dishonest assistance, conspiracy, or unjust enrichment.
  2. 2 Whether the first defendant can join the second and third defendants as third parties for contribution.

Ratio Decidendi

The second and third defendants have not established a prima facie case to join the Core Defaulting Directors as third parties on the basis of joint tortfeasorship under Article 3(1) of the 1960 Law, nor on the basis of conspiracy, as the necessary elements are not pleaded. The doctrine of unjust enrichment does not provide a basis for contribution in these circumstances, and the court's inherent jurisdiction cannot be used to create such a right. The applications to join third parties are refused.

Court Disposition

Applications to join third parties refused.

Orders

  • Leave to join the Core Defaulting Directors as third parties is refused.
  • Leave to amend the answer to plead conspiracy is refused.