Judgment has today been handed down by Butcher J in  Arena Television Limited (in liquidation) v. Bank of Scotland plc & Lloyds Bank plc [2025] EWHC 3036 (Comm), in which in a Quincecare type claim brought by Arena Television, he dismissed the defendant banks’ application to strike out and/or for reverse summary judgment on the grounds that the directors of Arena had actual authority to authorise payments out of the company’s bank account pursuant to a fraud on asset based lenders.  The banks had sought this relief on the basis that the quantum of the claim would be reduced from £280 million plus interest to a maximum of around £50 million plus interest.  The Judge accepted (among others) Arena’s submissions that it is arguable with a realistic prospect of success that the relevant law is that at least in the absence of express agreement of the principal otherwise, an agent only has actual authority to act honestly in pursuit of the interests of the principal and there is no realistic or workable distinction which can be drawn in a case like this between frauds on and by the principal.  

Lance Ashworth KC leading William Day of 3VB acted for Arena Television (in liquidation).