Fyffes Group Ltd. v Templeman & Ors, Court of Appeal - Commercial Court, May 22, 2000, [2000] 2 Lloyd's Rep 643,[2000] EWHC 224 (Comm)
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Fyffes Group Ltd. v Templeman & Ors, Court of Appeal - Commercial Court, May 22, 2000, [2000] 2 Lloyd's Rep 643,[2000] EWHC 224 (Comm)
Case No: 1998 Folio No. 646
BAILII Citation Number: [2000] EWHC 224 (Comm)IN THE HIGH COURT OF JUSTICEQUEEN'S BENCH DIVISION (Commercial Court)Royal Courts of JusticeStrand, London, WC2A 2LLDate: May 22 2000B e f o r e :THE HON MR JUSTICE TOULSON- - - - - - - - - - - - - - - - - - -(1) FYFFES GROUP LIMITED(2) CARIBBEAN GOLD LIMITED(3) E & F SHIPPING LIMITEDClaimants-and-(1) SIMON TEMPLEMAN(2) MARNIX VAN OVERKLIFT(3) GEERT PEPPING(4) ERIK MUSTERD(5) SEATRADE HOLDINGS B.V.(6) SEATRADE GRONINGEN B.V.(7) SEATRADE GROUP N.V.Defendants- - - - - - - - - - - - - - - - - - -- - - - - - - - - - - - - - - - - - -Mr M Howard QC and Mr A White (instructed by Herbert Smith for the Claimants)Mr A Jones QC, Mr J Lockey and Mr N Hart (instructed by Dorman & Co for the second to seventh Defendants)- - - - - - - - - - - - - - - - - - JUDGMENTMr Justice Toulson:IntroductionThe claimants allege that over a five year period from 1992 to 1996 their employee Mr Simon Templeman, the first defendant, took bribes amounting to over US $1.4 million from or with the connivance of the second to seventh defendants. The essential issues are whether the allegation is true; and, if so, what loss the claimants have suffered and what remedies are available to them. The action against Mr Templeman was settled on terms that he would help the claimants in their action against the other defendants, and he gave evidence on the claimants' behalf.The partiesThe claimants belong to the Fyffe group of companies, and I will refer to them collectively as Fyffes. The group is involved in the banana trade. It is headquartered in Dublin with offices in London and elsewhere. The parent company is Fyffes Group plc. The chairman of Fyffes Group plc is Mr Neil McCann. His son David was appointed group managing director in 1989 and chief executive in 1995.During 1989 and 1990 Fyffes secured several contracts for the supply of bananas which necessitated a year-round shipping service to carry the fruit from Central America to Europe. The group did not have anyone experienced in ship chartering. It was therefore decided to advertise for a suitably experienced person. Mr Templeman applied. He had worked in the shipping industry for nearly thirty years and was experienced in the chartering of reefer vessels. In April 1990 he joined Fyffes Group Limited as its general manager, marine operations. He was never a director of the company. He resigned, supposedly on grounds of ill health, after the discovery by Fyffes in 1997 of the matters which have given rise to this action.From April 1990 until November 1991 Mr Templeman worked from Fyffes' offices in London, reporting to Mr Russell Peters, who was a director of Fyffes Group Limited and head of its marine department in London, which handled all shipping matters affecting the group. In November 1991 Mr Templeman was seconded to Fyffes Bananas International in Fort Lauderdale, Florida. This was a new division of Fyffes Group Limited with responsibility for the purchasing of bananas in Central America and related shipping operations. From November 1991 until he was transferred back to England in early 1997 he reported to Mr Dennis Martin. Mr Martin was a director of Fyffes Group Limited from 1987 until his retirement in 1995, and from 1991 he was managing director of Fyffes Bananas International.The fifth, sixth and seventh defendants belong to the Seatrade group of companies, and I will refer to them collectively as Seatrade. The group's ultimate owners were Mr Van Overklift and Mr Pepping, the second and third defendants. Mr Van Overklift and Mr Pepping both come from seafaring families and joined the group in the 1970s. Since then the group has developed considerably. By the 1990s Seatrade had become either the largest or one of the largest reefer operators in the world. In addition to vessels which were owned or partly owned by companies within the group, it also operated a pool scheme by which it managed vessels belonging to others on a commission basis. The size of the fleet gave to the group the advantages of economy of scale, and the variety of ships in the pool gave great flexibility in the service which it could offer to its customers.Mr Van Overklift is and was at the relevant times Seatrade's chief executive. Mr Pepping joined the group as chartering manager. He remained active on the chartering side until the late 1980s or early 1990s, although his interests and responsibilities developed in other directions. Mr Erik Musterd, the fourth defendant, joined the group as chartering manager in April 1987. His job title was later changed to director of chartering. His task was to find customers, negotiate the terms of transactions and oversee their performance. As Mr Musterd became established in his post, Mr Pepping's involvement on the chartering side gradually declined and in 1992 he ceased any direct managerial functions. Mr ...See the full content of this document
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