In a two week trial in the High Court, Bark & Co successfully defended the former directors of Abbey Forwarding Limited in the High Court in an action brought by the liquidator of the company against them for breach of fiduciary duty. Abbey Forwarding Limited was a reputable and established bonded warehouse which operated from premises in east London from 1971 until the beginning of 2009. In February of 2009 Her Majesty’s Revenue & Customs (“HMRC”) raised assessments against the company for approximately £6 million and at an ex parte hearing successfully applied to have the company placed into provisional liquidation on the basis that the company had actively participated in diversion fraud.

1. Bark & Co Solicitors London
News

2. Abbey Forwarding v Richard Hone and
Others, Bark & Co Solicitors reports
In a two week trial in the High
Court, Bark & Co successfully
defended the former directors of
Abbey Forwarding Limited in the High
Court in an action brought by the
liquidator of the company against
them for breach of fiduciary duty.

3. Abbey Forwarding Limited was a reputable and
established bonded warehouse which
operated from premises in east London from
1971 until the beginning of 2009. In
February of 2009 Her Majesty’s Revenue &
Customs (“HMRC”) raised assessments
against the company for approximately £6
million and at an ex parte hearing
successfully applied to have the company
placed into provisional liquidation on the
basis that the company had actively
participated in diversion fraud.

4. The HMRC appointed
liquidator immediately
brought proceedings
against the directors
for breach of fiduciary
duty alleging fraud
against 3 of the
directors

5. . The basis for the claim and provisional
liquidation by HMRC was that the
directors fraudulently, or in the
alternative negligently, allowed loads of
duty suspended alcohol to be illegally
diverted and sold onto the UK market.

7. The claim was dismissed in its entirety. In his
judgement Mr Justice Lewison determined that not
only was there insufficient evidence of any
fraudulent behaviour on the part of the
directors, but that the loads of alcohol had in fact
reached their destinations and there was
insufficient evidence to show any fraudulent
diversion at all. The directors were fully
exonerated and the liquidator was ordered to pay
damages to the directors as well as their costs.

8. Thank you!