Shovlin v Site Civils and Surfacing Ltd & Anor (Re SPH Trust) [2023] EWHC 1658 (Ch) (04 July 2023)

Shovlin v Site Civils and Surfacing Ltd & Anor (Re SPH Trust) [2023] EWHC 1658 (Ch) (04 July 2023)

The court found that Austin Fergus acted in breach of trust by advancing £645,000 from the SPH Trust to SCS without authority and contrary to the trust's intended investment strategy. However, the court held that SCS and Mr Crosby did not have sufficient knowledge to make it unconscionable for them to retain the benefit, and thus were not liable as knowing recipients or for dishonest assistance. The claim for an account of profits and proprietary tracing remedy failed as the trust property had been repaid with interest and there was no unconscionability established.

Citation
[2023] EWHC 1658 (Ch)
Parties
Claimant: Mary Shovlin; First Defendant: Site Civils and Surfacing Ltd; Second Defendant: George Crosby
Jurisdiction
England and Wales
Judgment Date
04 July 2023
Procedural Posture
Chancery Division Civil Claim / Final Judgment After Trial
Outcome
Claim dismissed
Legal Topics
Breach of Trust, Knowing Receipt, Dishonest Assistance, Constructive Trusts, Proprietary Tracing, Remedies for Breach of Trust
Equity and Trusts Civil Procedure Breach of Trust Knowing Receipt Dishonest Assistance Constructive Trusts Proprietary Tracing Remedies for Breach of Trust

Case Brief

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Parties

Mary Shovlin

Claimant

Site Civils and Surfacing Ltd

First Defendant

George Crosby

Second Defendant

Procedural Posture

Chancery Division Civil Claim / Final Judgment After Trial

Legal Issues

  1. 1 Whether Austin Fergus acted in breach of trust in advancing £645,000 from the SPH Trust to SCS
  2. 2 Whether SCS and/or George Crosby were knowing recipients of trust property or dishonestly assisted in the breach
  3. 3 Whether the claimant is entitled to an account of profits or proprietary tracing remedy against SCS, Mr Crosby, or their assets

Ratio Decidendi

The court found that Austin Fergus acted in breach of trust by advancing £645,000 from the SPH Trust to SCS without authority and contrary to the trust's intended investment strategy. However, the court held that SCS and Mr Crosby did not have sufficient knowledge to make it unconscionable for them to retain the benefit, and thus were not liable as knowing recipients or for dishonest assistance. The claim for an account of profits and proprietary tracing remedy failed as the trust property had been repaid with interest and there was no unconscionability established.

Court Disposition

Claim dismissed

Orders

  • Claim for account of profits dismissed
  • Claim for proprietary tracing remedy dismissed