Domestic & General Group Limited & Ors v Premier Protect Holdings Limited & Ors
[2024] EWHC 2654 (KB)
Njord Partners SMA-Seal LP & Ors v Astir Maritime Ltd & Ors
3 July 2024
[2024] EWHC 1682 (Comm)
High Court
A father and son lied to get a big loan. The father faked his wealth, and the son signed off on false paperwork. The court said they both had to pay back the money they took.
Key Facts
- •Claims in deceit and conspiracy against Tahir and Ali Lakhani regarding a USD 45m loan facility to Astir Maritime Ltd.
- •Tahir provided a false Statement of Net Worth, overstating his assets.
- •Tahir gave false excuses for delays in loan repayments.
- •Astir provided false Approved Borrower Statements, confirming permitted transactions and no defaults.
- •Ali, as CFO of Astir, electronically signed the false statements.
- •The loan facility was secured by guarantees from North Star and Tahir.
- •Liquidators were appointed to North Star, resulting in a default event.
- •A worldwide freezing order was granted against Tahir and Ali.
Legal Principles
Elements of deceit: false representation, known to be false or reckless, intention for reliance, actual reliance, and resulting loss.
Various case law cited in sections (E.1) and (E.2)
Accessory liability in deceit: A party may be liable for representations made by a third party if they manifestly approve and adopt them.
Libyan Investment Authority & others v King & others, and other cases cited
Unlawful means conspiracy: combination of persons, intention to injure, use of unlawful means, and resulting loss.
FM Capital Partners Ltd v Marino, and other cases cited
Outcomes
Judgment for the Lenders against Tahir for deceit regarding the Asset Representations and the Delay Representations.
Tahir's false Statement of Net Worth and false excuses for delays induced the Lenders' reliance and caused them loss.
Judgment for the Lenders against Ali for deceit regarding the Asset Representations and the ABS Representations.
Ali was found to be an accessory to Tahir's deceit regarding the Asset Representations and directly liable for deceit through his electronic signature on the false Approved Borrower Statements.
Judgment for the Lenders against both Tahir and Ali for unlawful means conspiracy.
Tahir and Ali conspired to defraud the Lenders through their deceitful actions, causing the Lenders significant losses.
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