In Fairford Water Ski Club Ltd v Cohoon &
Anor [2021] EWCA Civ 143 the Court of Appeal allowed an
appeal against the decision of HHJ Russen ([2020] EWHC 290 (Comm))
holding Mr Cohoon and two other defendants liable for
breaches of duty in proceedings brought by Fairford, a company of
which Mr Cohoon had been a director.
Fairford ran a members' water skiing club. Mr Cohoon had
also been concerned in a partnership called Watersports which ran a
water skiing school and sold water skiing equipment, operating from
a building which was leased from Fairford as part of a management
agreement with Watersports. As Males LJ noted,
“The two businesses were independent of each other
but…they were ‘somewhat intertwined' reflecting,
no doubt, the informal way in which they were run, without rigorous
attention to the requirements of company law. The Club's day
to day administration was conducted from Watersports' shop
premises, with Craig [Cohoon] and his son Scott effectively