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Jones V. Churcher Notes

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JONES V. CHURCHER FACTS The claimant, Stephen Jones, is a car dealer trading under the name of The Chelsea Car Company from office premises in Battersea. At the time of the CHAPS transfer to Miss Churcher he employed two people, a mechanic, and a secretary, Miss Annabel Loveday. Jones and Sharky established contact: Mr Jones began acquiring his cars through Mr Sharkey rather than through Mr Warnock. Mr Sharkey's source of supply was a VW dealer in Dublin. Jones Started ordering cars through Sharky: The import price of a new VW Golf GT-TDI in 2005 and early 2006 was about PS14,300 inclusive of VAT. This was a significant discount on the showroom price of an authorised UK dealer. Mr Sharkey told Mr Jones in 2005 that he could supply through Murway as many as 100 cars. Mr Jones did not commit The Chelsea Car Company to so large a number: but he placed a number of orders with Murway which were successfully delivered. Money Transfers made to Sharky: It was Mr Sharkey who gave Mr Jones details of the bank account to which payment to Murway should be made. Until October 2005 it was an account with Barclays. Then it was switched to an account with NatWest. Payments addressed to Murway were made to both accounts without a problem and the cars were duly delivered. Then, in February 2006, Mr Sharkey told Mr Jones that Murway was experiencing banking difficulties and he provided Mr Jones with details of a different bank account. First payment to Churcher's account (not a mistake this time): The cost was PS14,300. When the order was relayed to Mr Sharkey, he sent a text message to Mr Jones asking for payment to be made to an account number 94270991 at Abbey National, The Bridge, Walsall in the name of K. Churcher. This was Miss Churcher's personal bank account, details of which Mr Sharkey had obtained in circumstances I will mention presently. Second Transfer: Intended for a car company but made by mistake to Churcher's Account: Within days of this order, Mr Jones told Mr Sharkey that he wanted another 5 VW Golfs from Murway. Mr Sharkey replied that, owing to continuing banking difficulties being experienced by Murway, payment for the cars should be made to an account number 06165821 with the Bank of Scotland in the name of Lophius Trading Ltd. Mr Jones assumed that Lophius was in some way connected with Murway.

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