MICHAEL WILSON & PARTNERS LTD V SINCLAIR AND ANOTHER

[2017] EWCA Civ 3, Court of Appeal, Lord Justice Patten, Sir Ernest Ryder, Senior President of the Tribunals and Lord Justice Simon, 3 January 2017

Arbitration - Effect of award on third parties - Abuse of process - Tribunal deciding that A had no claim against B for shares belonging to C - Judicial proceedings brought by A against C for shares - Whether abuse of process for A to sue C

MWP claimed in arbitration against E, an ex-employee, that shares transferred to him were obtained in breach of fiduciary duty. The tribunal held that the shares belonged to S and not to E, so that E was not in breach of duty. MWP then brought judicial proceedings against S, asserting that the shares had been received by E for his own benefit and not that of S, and that S was liable for providing knowing assistance to E to break his fiduciary duties to MWP. The question was whether the proceedings should be struck out for abuse of process.