A against B (Sheriff Court Civil) [2025] SCHAM 47 (09 May 2025)

A against B (Sheriff Court Civil) [2025] SCHAM 47 (09 May 2025)

The defender, as sole director of E Ltd, dishonestly assisted C in the misappropriation of trust funds due to the pursuer and knowingly received and benefitted from the proceeds of those breaches. The defender's actions and omissions, including permitting false accounting entries and receiving cash traced to the misappropriated funds, constituted dishonest assistance and knowing receipt. The pursuer is entitled to reparation for the loss suffered as a result.

Citation
[2025] SCHAM 47
Parties
Pursuer: A; Defender: B
Jurisdiction
Scotland
Judgment Date
09 May 2025
Procedural Posture
Civil / Judgment After Proof
Outcome
Decree for payment granted in favour of the pursuer against the defender.
Legal Topics
Dishonest Assistance, Knowing Receipt, Breach of Fiduciary Duty, Director's Duties, Misappropriation of Trust Assets, Reparation
Trusts and Estates Company Law Civil Procedure Dishonest Assistance Knowing Receipt Breach of Fiduciary Duty Director's Duties Misappropriation of Trust Assets +1 more

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Parties

A

Pursuer

B

Defender

Procedural Posture

Civil / Judgment After Proof

Legal Issues

  1. 1 Whether the defender dishonestly assisted her husband, C, in his established breaches of fiduciary duty owed to the pursuer.
  2. 2 Whether the defender received the benefit of C's established dishonest breaches of fiduciary duty owed to the pursuer.
  3. 3 If either of the above, the quantum owed by the defender to the pursuer.

Ratio Decidendi

The defender, as sole director of E Ltd, dishonestly assisted C in the misappropriation of trust funds due to the pursuer and knowingly received and benefitted from the proceeds of those breaches. The defender's actions and omissions, including permitting false accounting entries and receiving cash traced to the misappropriated funds, constituted dishonest assistance and knowing receipt. The pursuer is entitled to reparation for the loss suffered as a result.

Court Disposition

Decree for payment granted in favour of the pursuer against the defender.

Orders

  • Payment by the defender to the pursuer of £138,036.47 with interest at 8% per annum from 13 October 2023 until payment in respect of crave 1.
  • Payment by the defender to the pursuer of £298,190.75 with interest at 8% per annum from 13 October 2023 until payment in respect of crave 2.