Just Recruit Group - Case Update

A litigation funder has secured an almost £1 million judgment against the director of a now defunct recruiter for a series of payments which the director caused the company to make prior to its administration.

Just Recruit Group was a Hertfordshire-based recruiter specialising in the occupational health, health and safety and pharmaceutical sectors. The company entered administration in January 2021 after it suffered significant losses and its majority shareholder declined to provide further support.

In November 2021, administrators Miles Needham and Simon Carvill-Biggs of FRP Advisory assigned the company’s cause of action against director Norman Freed to litigation funder Manolete Partners, which has been pursuing the claim since.

Those efforts have proved fruitful, as the Court recently ruled in Manolete’s favour in the litigation. The Court ruled that Mr Freed was the controlling mind of the Just Recruit Group, and that he breached his duty to consider and act in the interests of creditors by transferring monies to his associated companies in order to try and remove those monies from the ambit of an insolvency process. Ultimately, Mr Freed was ordered to pay equitable compensation in the sum of £918,590.

The decision can be accessed HERE.

William Willson of South Square (instructed by HCR Legal) represented Manolete.