Director - Fraud - Whether defendants guilty of breach of fiduciary duty
Apax Global Payment and Technologies Ltd and another company v Morina and others: Chancery Division (Mr Justice David Richards - judgment delivered extempore): 24 June 2011
The first claimant company was engaged by the second claimant company to be payment processors for the gaming industry in Turkey. The relevant contracts were entered into between the parties.
The first claimant went into liquidation and the defendants were all former officers of the first claimant and their associated companies.
The claimants brought claims against the defendants, alleging that through the actions of the defendants, sums of $7m received by the claimants were misappropriated by the defendants.
They claimed damages for fraud and breach of fiduciary duty. The defendants failed to defend the claim.
The claim would be allowed.
In the present case, funds received by the first claimant to be held on trust for the second claimant had been fraudulently misrepresented by the defendants.
Each defendant was guilty of breach of fiduciary duty and dishonest assistance.
The claimants were entitled to declarations that each of the defendants was liable for damages in the sum claimed.
Stephen Auld QC and Richard Mott (instructed by Grosvenor Law) for the claimants. The defendants did not appear and were not represented.