Kowalishin v (1) Roberts (2) Tech 21 UK Ltd

The High Court determined a claim arising out of the Claimant's transfer of £50,000 in 2007 to the Second Defendant company, following discussions with its founder, the First Defendant. The Claimant claimed a contractual entitlement to shares in the Second Defendant, or alternatively a substantial restitutionary award to reflect the unjust enrichment of the Second Defendant through its use of the money over time. The Defendants asserted that there was no contract, and that any entitlement to restitution was limited to the return of the £50,000.

The Court found that there was no binding contract, but that the Second Defendant should return the £50,000 and pay a further sum in restitution based on the hypothetical terms it would have had to agree, in 2007, in order to borrow that sum from a commercial lender. That hypothetical interest rate was assessed at being 29.5%, compounded quarterly, producing a total award to the Claimant of more than £440,000.

In addition, while the Court rejected a further alternative claim for an exceptional 'subjective re-valuation' of the money transferred by reference to its subsequent mis-accounting by the Defendants, it found that both the First Defendant and the Second Defendant's Finance Director (a chartered accountant) had given dishonest evidence and has created deliberately misleading accounts.

Fraser Campbell (instructed by Andrew Goldstone, Dina Shiloh and Harry Eccles-Williams of Mishcon de Reya) appeared for the Claimant.