Stuart Benzie acted for the successful petitioner in a five-day trial of the petition and cross-petition in Kevin Chave v Adam Farnsworth & Ors.
The judgment considers the scope of the court’s discretion under section 996 of the Companies Act 2006, including the role of equitable considerations when awarding compensation in unfair prejudice proceedings, following the Supreme Court’s decision in THG Plc v Zedra Trust Company (Jersey) Ltd [2026] UKSC 6.
The parties’ relationship broke down after Mr Farnsworth instructed his representative to send letters alleging fraud and criminal conduct against Mr Chave and his family. The letters, written by Hylton-Potts Legal Consultants LLP (a firm owned and managed by a struck-off solicitor, Mr Rodney Hylton-Potts), were described by Mr Farnsworth as “strongly worded”; the judge concluded that this was a considerable understatement.
The letters concluded: “Put bluntly, you have picked the wrong claimants and the wrong lawyer to try your scam.” The judge found there was no basis for any of the allegations and described the letters as “incendiary” and “a decisive and terminal blow to Kevin and Adam’s business relationship”.
The court held that Mr Farnsworth’s conduct was unfairly prejudicial and ordered him to purchase Mr Chave’s shares at their value immediately before the acts of unfair prejudice.
Stuart was instructed by Jonathan Manser of Buss Murton Law LLP.
Find the full judgment here.