Partial Summary Judgment in £36 million payroll fraud claim: Anna Lintner instructed on behalf of the successful Applicant

Edwin Johnson J has handed down judgment in Umbrella Care Ltd (In Liquidation) v Nisa and others [2022] EWHC 86 (Ch), a partial summary judgment application relating to a payroll fraud claim. The Claimant, an umbrella payroll company in liquidation, alleges that its former directors removed very substantial sums from the company which should have been paid over to HMRC in PAYE, NICs and VAT. HMRC's claim in the liquidation is approximately £36 million. The Claimant sought summary judgment against 5 of the Defendants in relation to its claims for breach of fiduciary duty, dishonest assistance and knowing receipt. Following a 2 day hearing the Judge found that there was no real prospect of the Defendants successfully defending the breach of duty and knowing receipt claims and gave judgment with damages/equitable compensation to be assessed and ordered interim payments. The Judge also granted declarations that a number of properties and a bank account held in the name of the Defendants were held on constructive trust for the Claimant.

The full Judgment can be accessed here.

Anna Lintner appeared for the successful Applicant, led by Christopher Brockman of Enterprise Chambers and instructed by Wedlake Bell LLP.