Kidd v Paull & Williamsons LLP & Anor [2017] ScotCS CSOH_16 (03 February 2017)

Kidd v Paull & Williamsons LLP & Anor [2017] ScotCS CSOH_16 (03 February 2017)

The pursuer failed to plead a relevant case of fraudulent misrepresentation as no fraudulent representation or intention to induce the pursuer to enter the transaction was averred, and the LLP cannot be imputed with fraudulent intent of individual members. However, the defenders admit breach of fiduciary duty, and summary decree is granted to that extent, with compensation to be assessed on the basis of direct loss flowing from the breach, not foreseeability.

Citation
[2017] ScotCS CSOH_16
Parties
Pursuer: Robert Gordon Kidd; First Defender: Paull & Williamsons LLP; Second Defender: Burness Paull LLP
Jurisdiction
Scotland
Judgment Date
03 February 2017
Procedural Posture
Commercial Action / Summary Decree and Dismissal Motions
Outcome
Partial summary decree granted for breach of fiduciary duty; case based on fraudulent misrepresentation dismissed as irrelevant.
Legal Topics
Breach of Fiduciary Duty, Fraudulent Misrepresentation, Conflict of Interest, Equitable Compensation
Professional Negligence Fiduciary Duty Contract Law Breach of Fiduciary Duty Fraudulent Misrepresentation Conflict of Interest Equitable Compensation

Case Brief

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Parties

Robert Gordon Kidd

Pursuer

Paull & Williamsons LLP

First Defender

Burness Paull LLP

Second Defender

Procedural Posture

Commercial Action / Summary Decree and Dismissal Motions

Legal Issues

  1. 1 Whether the defenders breached fiduciary duty to the pursuer
  2. 2 Whether the defenders committed fraudulent misrepresentation
  3. 3 Appropriate measure of compensation for breach of fiduciary duty

Ratio Decidendi

The pursuer failed to plead a relevant case of fraudulent misrepresentation as no fraudulent representation or intention to induce the pursuer to enter the transaction was averred, and the LLP cannot be imputed with fraudulent intent of individual members. However, the defenders admit breach of fiduciary duty, and summary decree is granted to that extent, with compensation to be assessed on the basis of direct loss flowing from the breach, not foreseeability.

Court Disposition

Partial summary decree granted for breach of fiduciary duty; case based on fraudulent misrepresentation dismissed as irrelevant.

Orders

  • Summary decree granted in favour of pursuer for breach of fiduciary duty
  • Dismissal of pursuer's case based on fraudulent misrepresentation