Joint Administrators of Caley Oils Ltd v Wood

Insolvency – Administration – Breach of directors' fiduciary duty. Court of Session: In an action in which the joint administrators of a company sought recovery of certain sums from the sole director of the company, and the court heard a debate in which the pursuers argued that the defender had made no relevant averments in respect of their case that the company paid him £150,000 when it was insolvent or verging on insolvency, that he acted in breach of fiduciary duty as director by making that payment without having regard to the interests of the company's creditors, and that his averments that a payment of £100,000, made by Impact Trading Ltd to the company in November 2013 was a payment made on his behalf, were irrelevant, the court accepted the pursuers' submissions that the defender had no relevant case which could constitute a defence to the common law claim for repayment of the £150,000 and granted decree de plano, but held that the issue of the relevancy of the defender's averments regarding the payment of £100,000 by Impact Trading Ltd was one on which evidence was required, and it rejected the pursuers' contention that the defender's averments on it should be excluded from probation.

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