CANDEY obtains wide-ranging settlement in shareholder arbitration

CANDEY is delighted to have acted for a US based client in a confidential ad hoc London arbitration between two shareholders of a successful property company. The arbitration arose from hard-fought High Court proceedings between the two parties. The practical issues centered around a court ordered demerger of the business and the parties’ inability to agree certain matters necessary for the demerger. The legal issues were primarily ones of company law including the ability of shareholder directors to use company money for personal expenses, the meaning of “ordinary course of business”, and whether arbitration costs incurred in connection with a company demerger may be paid from company assets. Other matters for the tribunal included allegations of theft or misappropriation and the jurisdiction of an arbitral tribunal to order the sale of company assets.  

The arbitration was conducted on an ad hoc basis as a remedy fashioned by the lawyers and the arbitrator to break deadlock arising from previous High Court orders. Of particular note was the fact the parties agreed to pursue the arbitration on an expedited basis with just three months between the date of the first procedural hearing and the final hearing. The case settled on day three of the final hearing after cross examination of the principal witnesses. The terms of settlement are confidential.        

The CANDEY team was led by partner Andrew Dunn with senior associate Emily Higgins and paralegal Soham Luthra. CANDEY instructed Alex Cook KC, Nicholas Wright and Honor Brocklebank-Fowler from 4 Stone Buildings.