fiduciary duty – Page 3 – Current Awareness

Judgment of the Court of Appeal in Lehtimäki v The Children’s Investment Fund Foundation (UK) and others [2018] EWCA Civ 1605 – Radcliffe Chambers

Posted August 6th, 2018 in charities, company law, fiduciary duty, news by sally

‘Mark Mullen appeared for HM Attorney General before the Court of Appeal in Lehtimäki v The Children’s Investment Fund Foundation (UK) and others [2018] EWCA Civ 1605.

In the claim, the claimant (‘CIFF’), a company limited by guarantee and a registered charity, sought approval of the making of a grant of $360 million to a new charity established by one of its directors.’

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Radcliffe Chambers, 6th July 2018

Source: www.radcliffechambers.com

Pair were shadow directors but didn’t breach duties, says court – OUT-LAW.com

Posted May 9th, 2018 in company directors, fiduciary duty, news by tracey

‘Two men were found to be shadow directors of an insolvent property development company and so did owe the company fiduciary duties but their behaviour did not breach those duties, the High Court has ruled.’

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OUT-LAW.com, 8th May 2018

Source: www.out-law.com

Supreme Court: use of corporate vehicles did not avoid limitation exception – OUT-LAW.com

Posted March 23rd, 2018 in company directors, fiduciary duty, insolvency, limitations, news, Supreme Court, third parties, trusts by tracey

‘Company directors were said to be responsible for assets despite their use of corporate vehicles, the Supreme Court has ruled (12-page / 157KB PDF). The ruling means that a six year limitation period stopping liquidators taking legal action against the directors does not apply. This case will impact future misfeasance actions. Director and officer indemnity insurers should take note of this decision as it confirms that the English courts are unwilling to accept the six-year limitation defence for actions against directors following the disposal of company assets in breach of fiduciary duty for economic gain.’

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OUT-LAW.com, 23rd March 2018

Source: www.out-law.com

Collection of fees in receivables finance agreement must not be “arbitrary, capricious or irrational” says High Court – OUT-LAW.com

Posted August 2nd, 2017 in banking, Cayman Islands, fees, fiduciary duty, indemnities, news, receivers by tracey

‘The High Court has found that a lender must be rational when exercising its contractual discretion to charge collection fees under a receivables finance agreement. The agreement allowed for fees of up to 15%, however, the maximum chargeable for the lender to remain compliant with its duty was found, in this case, to be 4%.’

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OUT-LAW.com, 1st august 2017

Source: www.out-law.com

Liability of trustees in bankruptcy: important new Court of Appeal case – 4 New Square

Posted June 9th, 2017 in bankruptcy, fiduciary duty, judgments, news, trustees in bankruptcy by sally

‘The liability of trustees in bankruptcy to bankrupts is a curiously under – developed area of law. There has been a lack of clarity the circumstances in which a trustee can be liable to a bankrupt personally (rather than liable for losses to the bankrupt’s estate). However, this issue came before the Court of Appeal last month (judgment handed down 25 May 2017).’

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4 New Square, 8th June 2017

Source: www.4newsquare.com

Ukip threatened with legal action if Woolfe stood for leader – The Guardian

Posted August 15th, 2016 in elections, electronic mail, fiduciary duty, news, political parties, time limits by sally

‘UKIP’s leadership contest has been thrown into fresh controversy as a leaked email reveals that the party was threatened with legal action by two of the candidates if frontrunner Steven Woolfe were allowed to stand.’

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The Guardian, 13th August 2016

Source: www.guardian.co.uk

Fiduciary Duties, Football, and the Fundamental Importance of the Contractual Relationship – Sports Law Bulletin

Posted June 9th, 2016 in contract of employment, employment, fiduciary duty, news, professional conduct, remuneration, sport, wrongful dismissal by sally

‘Can a senior employee be ordered to pay back his past contractual remuneration to his employer as a remedy for breach of fiduciary duty, in particular a duty to confess his own wrongdoing? There has been an increasing trend over the past few years for employers, outraged at the belatedly discovered wrongdoing of a trusted senior employee, to not only seek to justify summary dismissal on the basis of after-discovered gross misconduct but also to go a step further and try to recover the salaries or bonuses already paid to the employee prior to discovery of the misconduct.’

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Sports Law Bulletin, 7th June 2016

Source: www.sportslawbulletin.org

Pursuing damages for bribery in the civil courts – OUT-LAW.com

Posted February 17th, 2016 in bribery, civil justice, damages, disclosure, fiduciary duty, fraud, news, search & seizure, Supreme Court, victims by michael

‘Under the 2010 Bribery Act, bribery is a criminal offence and companies are required to have in place adequate procedures in order to prevent those associated with them from undertaking bribery. Adequate procedures provide the company with a defence to the criminal offences set out in the Act. However, what is often overlooked is the ability of the company to pursue both the recipient of the bribe as well as the briber for its financial losses and, in some cases, damages for fraud.’

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OUT-LAW.com, 16 February 2016

Source: www.out-law.com

Compensation Fund could pay the price after High Court buy-to-let ruling – Legal Futures

Posted November 7th, 2014 in compensation, conveyancing, disciplinary procedures, disclosure, fiduciary duty, news, solicitors by tracey

‘The Solicitors Compensation Fund could be hit by a new wave of property claims after a High Court ruling on two test cases relating to a buy-to-let scheme.’

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Legal Futures, 7th November 2014

Source: www.legalfutures.co.uk

Court lifts £1.6m freezing order against City solicitor – Law Society’s Gazette

Posted October 10th, 2014 in fiduciary duty, fraud, freezing injunctions, news, solicitors by sally

‘The High Court has lifted a £1.6m freezing order against a solicitor after declaring that it was based ‘on the flimsiest foundations’.’

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Law Society’s Gazette, 9th October 2014

Source: www.lawgazette.co.uk

Proprietary remedies, fiduciary bribes, and dishonest assistants: FHR and Novoship – Employment Law Blog

Posted October 2nd, 2014 in appeals, bribery, constructive trusts, fiduciary duty, news, Supreme Court by tracey

‘Directors and senior employees will often have wide-ranging managerial power over their companies: the ability to commit or disburse company assets, with significant autonomy and limited detailed oversight. Those in such positions will not always act responsibly, and will be attractive targets to others seeking a share of the potential spoils. In two important judgments from July, the Court of Appeal and Supreme Court significantly increased the remedies available against both bribed fiduciaries and those who bribe them.’

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Employment Law Blog, 2nd Ocotber 2014

Source: www.employment11kbw.com

Bribes and secret commissions: Cedar in the Supreme Court – New Square Chambers

Posted September 3rd, 2014 in agency, bribery, equity, fiduciary duty, news, trusts by sally

‘What claim does a principal have where an agent or other fiduciary receives a bribe or secret commission in breach of the duty owed to him? Is the principal confined to a personal claim for equitable compensation from the fiduciary or canhe show that the bribe or commission was held on trust for him? After two centuries of debate in and out of the courts, the Supreme Court in FHR European Ventures LLP v Cedar Capital Partners [2014] UKSC 45 determined that the bribe or commission is held on trust such that the principal does enjoy a proprietary claim.’

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New Square Chambers, 14th August 2014

Source: www.newsquarechambers.co.uk

Richmond Pharmacology Ltd v Chester Overseas Ltd and others – WLR Daily

Posted August 7th, 2014 in company directors, conflict of interest, estoppel, fiduciary duty, law reports by sally

Richmond Pharmacology Ltd v Chester Overseas Ltd and others [2014] EWHC 2692 (Ch); [2014] WLR (D) 365

‘The test of whether there was a breach of the duty under section 175 of the Companies Act 2006 was objective, and did not depend on whether the director was aware that what he was doing was a breach of his duty. It was no defence to a claim for breach of this duty that the director had acted in good faith. Nor was it a defence that the director had acted reasonably, but wrongly, had thought that he had been entitled to do what he had done.’

WLR Daily, 1st August 2014

Source: www.iclr.co.uk

The quasi-trust – The Barristers’ Hub

Posted August 4th, 2014 in constructive trusts, equity, fiduciary duty, limitations, news, Supreme Court, trusts by sally

‘As every student of equity knows well, a trust is a type of property ownership in which one or more people (the trustee(s)) hold property on behalf of one or more other people (the beneficiary/ies), exercise all the powers of an owner of property in relation to third parties, but are bound to do so for the exclusive interests of the beneficiaries. A trust can be express, made by a formal written implement, or implied, either by transfer of property without explanation (a resulting trust) or in circumstances where the common intention of the parties is or is deemed to be for the property to be held on trust (a constructive trust). Both express and implied trusts are genuine trusts: the property is owned by the trustee, subject to the interest of the beneficiaries.’

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The Barristers’ Hub, 1st August 2014

Source: www.barristershub.co.uk

FHR European Ventures LLP and others (Respondents) v Cedar Capital Partners LLC (Appellant) – Supreme Court

Posted July 22nd, 2014 in agency, appeals, fiduciary duty, law reports, Supreme Court by sally

FHR European Ventures LLP and others (Respondents) v Cedar Capital Partners LLC (Appellant) (YouTube)

Supreme Court, 9th July 2014

Source: www.youtube.com/user/UKSupremeCourt

FHR European Ventures LLP and others v Cedar Capital Partners LLC – WLR Daily

Posted July 17th, 2014 in agency, appeals, fiduciary duty, law reports, Supreme Court by tracey

FHR European Ventures LLP and others v Cedar Capital Partners LLC; [2014] UKSC ; [2014] WLR (D) 317

‘Where an agent obtained a benefit, including a bribe or a secret commission, which was, or resulted from, a breach of his fiduciary duty to his principal, he held the benefit on trust for his principal.’

WLR Daily, 16th July 2014

Source: www.iclr.co.uk

Novoship (UK) Ltd and others v Nikitin and others – WLR Daily

Posted July 9th, 2014 in bribery, causation, charterparties, debts, fiduciary duty, interest, law reports by sally

Novoship (UK) Ltd and others v Nikitin and others [2014] EWCA 908; [2014] WLR (D) 297

‘The remedy of an account of profits was available against one who dishonestly assisted a fiduciary to breach his fiduciary obligations, even if that breach did not involve a misapplication of trust property.

WLR Daily, 4th July 2014

Source: www.iclr.co.uk

Fiduciary Duties of Investment Intermediaries – Law Commission

Posted July 4th, 2014 in fiduciary duty, financial advice, news by tracey

‘Report responding to concerns raised in the 2012 Kay Review that uncertainty about their legal duties leads investors to focus on short-term movements in share price rather than making long-term investment decisions based on the fundamental value of a company.’

Full report

Law Commission, 1st July 2014

Source: www.justice.gov.uk/lawcommission

Strengthening the legal duties on financial professionals to act in the best interests of savers – Law Commission

Posted October 29th, 2013 in consultations, fiduciary duty, financial advice, Law Commission, news, pensions, trusts by sally

“Today [22 October] the Law Commission publishes a consultation paper reviewing how ‘fiduciary duties’ apply to investment intermediaries. The paper traces a chain of intermediaries from an individual, saving for a pension, to the registered shareholder of a UK company. It looks at the obligations of those in the chain to act in the interests of savers.”

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Law Commission, 22nd October 2013

Source: www.lawcommission.justice.gov.uk