A senior employee of Charter had fraudulently spent substantial sums with City Index. City Index had paid out on a claim of knowing receipt, and sought contributions from directors of Charter and their auditors, saying that they had known of the fraud and done nothing. They now appealed summary dismissal of the claim.
Held: The appeal succeeded. They had an arguable case against the defendants. The liability of the defendants lay not solely in the receipt of money paid in trust, but also on retaining it or paying it on in unconscionable circumstances.
Judges:
Carnwath LJ
Citations:
[2007] EWCA Civ 1382, Times 08-Jan-2008, [2008] PNLR 16, [2007] 2 CLC 968, [2008] WTLR 1773, [2008] 2 All ER (Comm) 425, [2008] 3 All ER 126, [2008] Ch 313, [2008] 2 WLR 950
Links:
Statutes:
Civil Liability (Contribution) Act 1978
Jurisdiction:
England and Wales
Citing:
Appeal from – Charter Plc and Another v City Index Ltd and others ChD 12-Oct-2006
An employee of the claimant had fraudulently spent several million pounds of the claimant’s money on personal bets through the defendant company. The claimant said that the defendants knew the origin of the funds and were liable to repay them. . .
Cited – Friends’ Provident Life Office v Hillier, Parker May and Rowden CA 1997
Friends Provident had participated in a development project on terms which required it to pay its share of the development costs as it proceeded. It employed Hillier Parker, a firm of surveyors, to check demands made from time to time for payment of . .
Cited – Bank of Credit and Commerce International (Overseas) Ltd and Another v Akindele CA 22-Jun-2000
The test of whether a person who received funds held them on constructive trust, was not whether he himself was dishonest, but rather whether he had knowledge of circumstances which made it unconscionable to hold on to the money received. In respect . .
Cited – Royal Brompton Hospital National Health Service Trust v Hammond and others HL 25-Apr-2002
The claimants sought damages against the defendants for their late delivery of a building. The contractors sought to share the damages with the architects who had certified the delays, defeating their own claims.
Held: The Act sought to extend . .
Lists of cited by and citing cases may be incomplete.
Torts – Other, Company
Updated: 22 November 2022; Ref: scu.263403