Richard Salter KC and Alexia Knight Successful in Court of Appeal in Significant APP Fraud Case
The Court of Appeal has handed down judgment in the second appeal in Moorwand Ltd v Hamblin & Ors [2026] EWCA Civ 942. Richard Salter KC and Alexia Knight were successful before Peter Jackson, Nugee and Foxton LJJ in a two day appeal considering issues arising from an authorised push payment (“APP”) fraud perpetrated by the Third Respondent, RND Global Ltd, against the First and Second Respondents, Mr and Mrs Hamblin.
The claim arose from the activities of fraudsters who persuaded the Hamblins to “invest” in a scheme that promised, by any measure, objectively unrealistic returns. The Hamblins’ money was paid, by them, into an account held by RND with Moorwand Ltd, whereupon they were dissipated. RND was a company established by the fraudster, using the details of an individual (Mr Stanfield) who had been the victim of identity theft. The Hamblins brought their claim by way of a derivative action, standing in the shoes of RND, and alleged that Moorwand had breached its duties to RND as laid down by the Supreme Court in Barclays Bank v Philipp [2023] UKSC 25, [2024] AC 346.
Alexia Knight had successfully defended the claim at first instance, with the Hamblins’ claims dismissed in their entirety. On an appeal before Marcus Smith J, the Hamblins succeeded in overturning some elements of the first instance decision, resulting in a judgment against Moorwand Ltd.
Moorwand Ltd appealed, and the Court of Appeal set aside the judgment of Marcus Smith J in its entirety, and restored the first instance decision.
The Court declined the opportunity to grapple with the question of whether, where a company is set up as a vehicle of the fraud from the outset, and it is always envisaged by those in control of the company that the proceeds of the fraud will be disbursed from the company, the directors will lack actual authority to give the transfer instructions because the dispersal constitutes a fraud on the company, either because the assets are held on constructive trust by the company or because the transfers will leave the company unable to pay its creditors. Their Lordships similarly held it unnecessary to determine whether the actual shareholder and director of RND was the fraudster using the real Mr Stanfield’s identity.
The Court did however conclude that Marcus Smith J erred in concluding that the real Mr Stanfield (who had never given his consent to the use of his name) had become a member and director of RND and that consequently only the real Mr Stanfield, and not the fraudster, was authorised to give instructions on behalf of RND.
The Court’s judgment also reiterates the high threshold for interfering with a trial judge’s evaluative assessment of the evidence, and, applying that threshold, determined that the trial judge’s decision on whether the Philipp duty had been breached was one that was properly open to him. The trial judge having held that Moorwand had not breached that duty, the Hamblins’ claim necessarily failed.
The full judgment can be found here: Moorwand Ltd v Hamblin & Ors [2026] EWCA Civ 942 (21 July 2026)
Richard Salter KC and Alexia Knight acted for Moorwand Ltd and were instructed by Robert Harvey of Keystone Law.
