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Re Duckwari

[1999] Ch 253

Case summary last updated at 22/01/2020 19:15 by the Oxbridge Notes in-house law team.

Judgement for the case Re Duckwari

D was director of Company A and Duckwari. Company A bought property for £500,000; D offered to pass this property on to Duckwari in return for 50% of profits resulting from this development. Offer was accepted by Duckwari, but not approved by its members. After Duckwari had purchased property, was crash in housing market and property was sold at a great loss (£175,000). D was sued under old version of s.190. Held:
·       D and the other directors of Duckwari were liable to indemnify Duckwari for whole of its loss
Ø  i.e. the entire difference between £500,000 and £175,000
Ø  thus were liable even for the losses caused by crash in housing market
·       This because liability of C is strict
Ø  Is that of a trustee

Re Duckwari crops up in following areas of law