In this article our Dispute Resolution team looks at the case of Zenith Logistics Services (UK) Ltd and others v Keates and others, which has confirmed the requirement for proper evidence to be provided to support a claim for management time spent in investigating alleged wrongdoing.
What did the case reveal?
In the Zenith case, the lack of evidence of the time spent and on what, meant that the Court refused the recovery of such management time.
The Court specifically noted the following points in relation to the shortcomings in the evidence that was presented.
- Estimated hourly rates were used and whilst the honesty of the claimants was not in question, the Court approached the use of estimates with caution.
- The time claimed was unsupported by any documentation such as diaries or timesheets, etc.
- The lack of such supporting evidence meant that it was impossible for the Court to determine how much time was assigned to each claim, or the pursuit of the litigation itself.
Keeping detailed records is essential
Noting the above points in particular, the Zenith case confirms the need to keep accurate and detailed records showing the time spent and by whom. The better that evidence is, the better the prospects of a successful recovery.
Speak to someone about your lost management time case
If you have been affected by issues raised in this article and believe you may have a case with similar merits or you wish to discuss another type of dispute, please get in touch with our dispute resolution team today to discuss your case.
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Key Contact
Nick Clarke
Senior Partner | Head of Dispute Resolution
Nick became the firm’s Senior Partner in 2019, having been with Aaron & Partners for over 20 years, and he sits on the firm’s management board. He also leads the Dispute Resolution team.
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