Samsung Semiconductor Europe Ltd v Docherty (FE) & Anor [2011] ScotCS CSOH_32 (17 February 2011)

Samsung Semiconductor Europe Ltd v Docherty (FE) & Anor [2011] ScotCS CSOH_32 (17 February 2011)

The defender, as QA Manager, was in a position of trust and influence regarding DKV, and his undisclosed financial interest created a real and sensible possibility of conflict. He breached his fiduciary duty by favouring DKV and is obliged to account for profits received.

Citation
[2011] ScotCS CSOH_32
Parties
Pursuer: SSEL; Defender: Defender
Jurisdiction
Scotland
Judgment Date
17 February 2011
Procedural Posture
Civil / Final Judgment
Outcome
judgment for pursuer
Legal Topics
Breach of Fiduciary Duty, Conflict of Interest, Duty of Loyalty, Accounting for Profits, Damages for Breach of Contract
Employment Law Fiduciary Duty Contract Law Breach of Fiduciary Duty Conflict of Interest Duty of Loyalty Accounting for Profits Damages for Breach of Contract

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Parties

SSEL

Pursuer

Defender

Defender

Procedural Posture

Civil / Final Judgment

Legal Issues

  1. 1 Did the defender owe a fiduciary duty to SSEL?
  2. 2 Was the defender in breach of his fiduciary duty and contract?
  3. 3 Is the defender liable to account for profits received from DKV?

Ratio Decidendi

The defender, as QA Manager, was in a position of trust and influence regarding DKV, and his undisclosed financial interest created a real and sensible possibility of conflict. He breached his fiduciary duty by favouring DKV and is obliged to account for profits received.

Court Disposition

judgment for pursuer

Orders

  • Order for account of profits made by defender from dealings with DKV.
  • Decree for payment of €340,808.92 or equivalent in sterling at date of payment or extract.