Transfer secret

February 19, 2009

Commercial, contract

Imageview Management Ltd v. Kelvin Jack [2009] EWCA Civ 63

The Court of Appeal has just decided that an agent is liable to his client if he fails to disclose any conflicts of interest. Any commission paid during that time is recoverable, as are any secret profits made by the agent.

 

The case concerns an agent (Mike Berry & Imageview Management Ltd) who acted for the Trinidad & Tobago goalkeeper (Kelvin Jack) in a transfer to Dundee United. Unbeknown to the claimant, Berry made a secret deal with Dundee that they would pay him £3,000 (actual cost of service: <£750) directly for arranging the work permit that Jack needed to enable him to work in this country. When Jack later found out about this, he stopped paying Imageview their 10% commission of his salary, leading to this court case. While there is nothing inherently wrong in side deals, the court held that the fact that it was conducted secretly led to a breach of the fiduciary duty, and there was a clear conflict of interest on the part of the agent.

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About Kris

Associate Professor in Sports Law, Staffordshire University; British Gymnastics Senior Coach

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