In Natwest Markets Plc and another v Bilta (UK) Ltd and others, the court ordered a re-trial, following a 19-month delay in the production of the original judgment. Separately, the court held that the individual wrongdoers were so much a part of the work, business and organisation of both defendant companies that it was just to make both employers answer for their tortious acts and omissions in the course of their employment.
The claim was brought by insolvent companies against a bank and its subsidiary for dishonest assistance and knowing participation in fraudulent trading, via the actions of its traders. It was established that the traders had been aware at all times that VAT was chargeable on their EU allowance carbon credit trades. Their evidence was untrue, implausible and designed to falsely suggest that there was no reason why they should have made the connection between the vast increase in trade that they were witnessing and the possibility that it was connected to VAT fraud.
The court rejected the argument made by the employer that the “loan” of the traders in this case was “so effective and complete that only [the host employer] should be held responsible for their tortious acts”. The court warned that it will be very rare to have circumstances giving rise to such a complete shift from the actual employer to the organization to which the employee is loaned. The court also noted that there has been no recorded case that has come to this conclusion.
The Court of Appeal ruled that it did not have faith that Judge Snowden J’s decisions were correct after he failed to address evidence that would potentially exonerate the traders.
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