The Consequences Of Letting Sleeping Dogs Lie

In Watford Control Instruments v Colin Brown [2024] EWHC 1125 (Ch), the English High Court made clear that, once a claimant has unjustifiably delayed progressing its claim for an extended period, it is very difficult for the claimant to avoid its claim being struck out altogether.

Background

The underlying dispute between Watford Control Instruments Limited (WCI) and Mr Brown began after WCI purchased a company out of administration, of which Mr Brown had previously been a director. WCI alleged that Mr Brown had acted in breach of the fiduciary duties he had owed the company in that he knowingly and dishonestly appropriated the company's money for his own purposes.

The claim was issued in June 2018. A Case Management Conference took place in July 2019, but was adjourned to be re-listed after September 2019. However, that never occurred, and from September 2019 until July 2022, WCI did not take any steps to pursue its claim. When steps were taken by WCI to