(New Zealand) One party sought the restructuring of a company in which he owned a substantial interest. The settlement required him to undertake not to compete with the company. Later he was suspected to be acting in breach of the covenant, and his explanation was not accepted by the court. It was argued that the finding was a finding of fraud where none had been pleaded.
Held: The decision did not imply any finding of fraud. An injunction had been granted to oblige the appellant not to act in breach of the covenant, but not against the man who, it had been claimed as acting as his front man. It was argued that damages could not be awarded as well as an injunction. That power existed and there was no double recovery.
Judges:
Lord Slynn of Hadley Lord Hutton Lord Hobhouse of Woodborough Sir Martin Nourse Sir Murray Stuart-Smith
Citations:
No 7 of 2001, [2001] UKPC 59
Links:
Statutes:
Companies Act 1955 (New Zealand)
Jurisdiction:
England and Wales
Commercial, Company
Updated: 06 September 2022; Ref: scu.167224