JACOB ENGINEERING GROUP INC , RECLAIMING MOTION TED JACOB ENGINEERING GROUP INC AGAINST (FIRST) ALEXANDER PETER MORRISON AND (SECOND) DECLAN THOMPSON [2019] ScotCS CSIH_22 (05 April 2019)

JACOB ENGINEERING GROUP INC , RECLAIMING MOTION TED JACOB ENGINEERING GROUP INC AGAINST (FIRST) ALEXANDER PETER MORRISON AND (SECOND) DECLAN THOMPSON [2019] ScotCS CSIH_22 (05 April 2019)

The court held that under UAE law, RMJM acted as agent and depositary for the pursuer regarding client funds, and the defenders, as directors of RMJM's partner companies, are personally liable for misappropriation of those funds. Article 313 of UAE Companies Law 1984 applies the law's provisions, including articles 111 and 112, to RMJM as a foreign branch, imposing personal liability on directors. The claim is not time-barred, as a 10-year prescriptive period applies.

Citation
[2019] ScotCS CSIH_22
Parties
Pursuer and Respondent: TED JACOB ENGINEERING GROUP INC; Defender and Reclaimer: ALEXANDER PETER MORRISON; Defender and Reclaimer: DECLAN THOMPSON
Jurisdiction
Scotland
Judgment Date
05 April 2019
Procedural Posture
Reclaiming Motion (appeal) / Post Preliminary Proof, Appellate Review
Outcome
appeal dismissed; commercial judge's decision affirmed
Legal Topics
Personal Liability of Directors, Agency Relationship, Depositary Duties, Misappropriation of Funds, Application of UAE Law, Interpretation of Foreign Statutes, Prescription/time Bar
Commercial Law Company Law Agency Law Foreign Law Personal Liability of Directors Agency Relationship Depositary Duties Misappropriation of Funds +3 more

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 5 Authorities cited 13 Party arguments 2 Amounts and remedies 1
Sign in to unlock

Parties

TED JACOB ENGINEERING GROUP INC

Pursuer and Respondent

ALEXANDER PETER MORRISON

Defender and Reclaimer

DECLAN THOMPSON

Defender and Reclaimer

Procedural Posture

Reclaiming Motion (appeal) / Post Preliminary Proof, Appellate Review

Legal Issues

  1. 1 Are the defenders personally liable under UAE law for RMJM's misappropriation of funds held on deposit for the pursuer?
  2. 2 Does UAE Companies Law 1984 articles 111 and 112 apply to RMJM and its directors via article 313?
  3. 3 Is the pursuer's claim time-barred under UAE law?

Ratio Decidendi

The court held that under UAE law, RMJM acted as agent and depositary for the pursuer regarding client funds, and the defenders, as directors of RMJM's partner companies, are personally liable for misappropriation of those funds. Article 313 of UAE Companies Law 1984 applies the law's provisions, including articles 111 and 112, to RMJM as a foreign branch, imposing personal liability on directors. The claim is not time-barred, as a 10-year prescriptive period applies.

Court Disposition

appeal dismissed; commercial judge's decision affirmed

Orders

  • The defenders are personally liable under UAE law for RMJM's misappropriation of funds held on deposit for the pursuer.
  • UAE Companies Law 1984 articles 111 and 112 apply to RMJM via article 313.