The Court of Appeal has upheld an order requiring the claimant to fortify its cross-undertaking in damages after it obtained a worldwide freezing order against the defendant: Energy Ventures Partners Ltd v Malabu Oil & Gas Ltd [2014] EWCA Civ 1295. This is the first time that the appropriate test to be applied by the … Read more

Who is the rightful owner of a bribe? Is a bribe or secret commission received by an agent “held on trust” for his principal? Or is the principal’s claim against the agent a personal one for equitable compensation equal to the value of the bribe or commission? The issue is of critical importance. It affects … Read more

Some, if not quite born trustees, are appointed as such at the outset of a trust. Some achieve trusteeship at some later stage. And some have some aspects of trusteeship thrust upon them. Within this third category are strangers to a trust who “dishonestly assist” an express trustee in a breach of the trustee’s fiduciary … Read more

A new EU Regulation will come into force tomorrow establishing a European Account Preservation Order (EAPO) procedure to facilitate cross-border debt recovery in civil and commercial matters (Regulation (EU) 655/2014). The main provisions will not however apply until January 2017. Under the new procedure, a creditor will be able to obtain an EAPO which effectively … Read more

A recent Court of Appeal decision has confirmed that the usual contractual rules, including as to remoteness of damage, apply by analogy to the assessment of compensation under a cross-undertaking in damages in a freezing order. However, there is also room for exceptions, given that there is in fact no contract: Hone and others v … Read more

The Court of Appeal has clarified the definition of “assets” for the purpose of the standard form freezing injunction, confirming that assets belonging beneficially to a wholly owned company are not directly caught by an injunction against that company’s sole shareholder: Lakatamia Shipping Company Limited v Nobu Su & Ors [2014] EWCA Civ 636. In … Read more

The Court of Appeal has held that an interim injunction should be granted to prevent the defendant’s alleged breach, on the basis that damages would be an inadequate remedy due to a limitation clause in the relevant contract: AB v CD [2014] EWCA Civ 229. In doing so it has reversed the first instance decision … Read more

Often, a substantial time may have passed before a beneficiary becomes aware of a fraudulent breach of trust. Even when the fraud has been discovered, there may be a number of reasons why the beneficiary decides to delay in commencing proceedings. When considering claims against third parties to a fraudulent breach of trust, however, beneficiaries will … Read more