“6… Our clients’ intention for the removal of your client as a director is to protect the best interests of the company, as by his removal he will lose his standing to give instructions to staff. This is necessary because of his serious misconduct in terms of treatment of staff. This has been documented extensively over years of his involvement in the business. In such circumstances, your client will not be entitled to relief such as you suggest as the measures taken are justified – a point made by Lord Cross in the House of Lords decision in Ebrahimi v Westbourne Galleries & Ors [1973], and by Lady Arden in Chu v Lau [2020]. 7. Our clients are not seeking to otherwise remove Thomas Abrey from the running and management of the business. The alternate working arrangements our clients have suggested would mean he would stay as a director and would continue to run the onion department…”
“Your Letter confirms that, apart from seeking to prevent Thomas Abrey giving ‘instructions to staff’, your clients are not seeking to ‘otherwise remove Thomas Abrey from the running and management of the business.’ That purported nuance is not understood. The suggestion that he could ‘continue to run the onion department’ whilst being unable to give instructions to staff is nonsensical. If what you say is correct, removing him as a director is merely for show. As if Tom Abrey can continue to participate in the running the Business effectively without being a director, it means that the removal serves no useful purpose. It would however provide your clients with grounds to instruct staff not to listen to or pay regard to any instructions provided to them by Tom. Indeed, this is already happening upon the ground, with staff members refusing to follow the instructions of Tom or Chris Abrey based upon instructions provided to them by Robert Abrey, with one staff member this week stating to Chris Abrey: ‘Robert said we don’t have to communicate with you’.”
“We do not agree that the proposed removal of your client as a director is for show. As you know, the employees are employed by the Company, not the Partnership. If your client is no longer a director, he loses his standing to issue instructions. This is sadly necessary in circumstances where he refuses to agree working arrangements that would hopefully avoid further incidents and escalations and that would let the parties focus on a settlement. Your client would remain a partner of the Partnership and so would retain his right to be involved in the running and management of the same, for instance in decisions requiring unanimity of the partners. That does not extend to the giving of instructions to staff who are not employed by the Partnership.”
“However, your repeated assertions, on behalf of your clients, that Thomas’s removal as a director will remove his standing to issue such instructions (see your letters dated27 August 2024 and23 September 2024 ) reveals that the intention of your clients is to use Thomas’s (proposed) removal as a director to justify his exclusion from the business, in breach of his rights as a partner. We therefore see the decision to be taken on Friday, if indeed our client’s directorship is terminated on Friday, to be a watershed moment in terms of your client’s stated aims to exclude our client from rights which are accorded to him as a partner. At that point, your clients will have taken an irrevocable step in that regard. Accordingly, if your clients pass the resolution to remove Thomas as a director at the general meeting on27 September 2024 , our clients will have no option but to treat this as a threat to undermine his right to continue to participate in the partnership business and to issue an injunction to restrain the same. … Please now be under no misapprehension; our clients have provided us with instructions to issue such an application should the ordinary resolution be passed this Friday.”
“It is no part of the court’s function at this stage of the litigation to try to resolve conflicts of evidence on affidavit as to facts on which the claims of either party may ultimately depend nor to decide difficult questions of law which call for detailed argument and mature consideration…”
“The principal dilemma about the grant of interlocutory injunctions, whether prohibitory or mandatory, is that there is by definition a risk that the court may make the ‘wrong’ decision, in the sense of granting an injunction to a party who fails to establish his right at the trial (or would fail if there was a trial) or alternatively, in failing to grant an injunction to a party who succeeds (or would succeed) at trial. A fundamental principle is therefore that the court should take whichever course appears to carry the lower risk of injustice if it should turn out to have been ‘wrong’ in the sense I have described. The guidelines for the grant of both kinds of interlocutory injunctions are derived from this principle.”
“…Having such a right, the Court ought not to interfere more than is absolutely necessary for the protection of these parties. I think I may interfere to the extent of preventing the Defendant… from obstructing or interfering with the Plaintiff in the exercise of his right under that agreement.”