You are here

(1) Cadbury Schweppes Plc (2) Unilever Plc v Halifax Share Dealing Ltd & Lloyds TSB Bank Plc

Where companies had borne losses sustained as a result of fraudsters usurping the identity of genuine shareholders, and where the companies, the providers of registration services, the stockbrokers, and the true shareholders had all been innocent of wrongdoing, those companies were unable to recover contribution from the stockbrokers on the basis of implied indemnity as there was an estoppel by representation that their share certificates naming the fraudsters as the genuine shareholders conferred prima facie title at the relevant time, and they could not prove that the persons they had reinstated to share ownership were the true shareholders.

9 June 2006

The claimant companies (C) claimed an indemnity from the defendant stockbrokers (H) to recoup their losses resulting from a share fraud, and the defendant provider of share registration services (L) applied to strike out H’s Part 20 claim. Alternatively, L applied for summary judgment against H. C, H and L, as well as shareholders in both companies, had been innocent parties affected by a share fraud. The resulting damage had been made good by C without assessment of relative blameworthiness amongst the parties. The issue for determination was who should bear the costs of setting right the effects of the fraud, and C brought proceedings on the basis that there was an implied indemnity in their favour payable by H, as H had lodged fraudulent executed transfers of shares in C with L, which was the action which had caused the losses. H submitted that there was an estoppel raised against the indemnity claim in that C could not deny the truth of the apparently regular share certificate...

Want to read on?

This article is part of our subscription-based access. Please pick one of the options below to continue.

Already registered? Login to access premium content

SUBSCRIBE for one User

Unlimited access to the entire SJ website for a full year for one user.

  • 10 issues a year delivered to you
  • Digital edition of the magazine for one user – sent to your inbox or accessible through the website
  • Access to premium content on the website
  • Access to the fully searchable online archive of Solicitors Journal, Managing Partner and Private Client Adviser, which spans over 13 years
  • Weekly email newsletter with all the latest news, analysis and features
  • Comment on SJ content and contribute to the SJ community online
  • Advanced search feature
  • Online support
  • Access to SJ app compatible with Android and Apple devices – coming soon!
  • 6 special focuses per year
  • Special offers and discounts on Solicitors Journal and IICJ events

Subscribe

CORPORATE SUBSCRIPTION

Your department or entire firm can subscribe to Solicitors Journal online, providing easy access for all who require it. Discount corporate subscription rates apply, based on number of users.

The Corporate IP Licence includes:

  • Digital copy of the magazine sent to individuals’ inboxes and accessible through the website. Solicitors Journal publishes 10 issues per year
  • Unlimited access to premium content on the website based on IP addresses
  • Unlimited access to the fully searchable online archive of Solicitors Journal, Managing Partner and Private Client Adviser, which spans over 13 years
  • Weekly email newsletter with all the latest news, analysis and features
  • Comment on SJ content and contribute to the SJ community online (username required)
  • Unlimited access to SJ app compatible with Android and Apple devices
  • 6 special focuses per year
  • Special offers and discounts on Solicitors Journal and IICJ events

The Corporate IP Licence is tailored to your firm, making it the most cost effective way for the firm to access Solicitors Journal, and enables the firm to remain compliant with copyright and our Terms and Conditions. This gives you the ability to print and circulate articles within the firm.

To enquire about a Corporate IP Licence for your firm, please contact our Subscriptions Manager on emily.beechey@solicitorsjournal.com.