In a two week trial in the High Court, Bark & Co successfully defended the forme r directors of Abbey Forwarding

Limited in the High Court in an action brought b y the liquidator of the company against them for breach of fiduciary duty.

Abbey Forwarding Limited was a reputable and established bonded warehouse which operated from premises in east London from 1971 until the beginning of 2009. In February of 2009 Her Majesty s Revenue & Customs ( HMRC ) raised assessments against th pany for approximately 6 million and at an ex parte hearing successfully applied t o have the company placed into provisional liquidation on the basis that the com pany had actively participated in diversion fraud. The HMRC appointed liquidator immediately brought proceedings against the direct ors for breach of fiduciary duty alleging fraud against 3 of the directors. The basis for the claim and provisional liquidation by HMRC was that the directors f raudulently, or in the alternative negligently, allowed loads of duty suspended alcohol to be illegally diverted and sold onto the UK market. The claim was dismissed in its entirety. In his judgement Mr Justice Lewison det ermined that not only was there insufficient evidence of any fraudulent behaviou r on the part of the directors, but that the loads of alcohol had in fact reache d their destinations and there was insufficient evidence to show any fraudulent diversion at all. The directors were fully exonerated and the liquidator was ord ered to pay damages to the directors as well as their costs.