Shah v Shah & Ors

Shah v Shah & Ors

The absence of a formal prayer for interest does not preclude an award of interest where the issue has been identified, no prejudice is caused, and the defect can be waived under CPR 3.10. Compound interest at 3% above base rate is appropriate for sums arising from breach of fiduciary duty, while only Judgment Act interest applies to other sums. On costs, the usual presumption applies and Ashok must pay Jaivant's costs of the Plot 94 issue, but not on an indemnity basis.

Parties
Claimant: Nirav Shah; Defendant/part 20 Claimant: Ashok Shah; First Part 20 Defendant: Jaivant Shah; Second Part 20 Defendant: Bharat Shah
Jurisdiction
England and Wales
Judgment Date
04 April 2019
Procedural Posture
Civil (chancery, Business/property) / Post Trial Judgment on Interest and Costs
Outcome
Interest awarded to Ashok on a compound basis at 3% above base rate for sums arising from breach of fiduciary duty; only Judgment Act interest for other sums; Ashok to pay Jaivant's costs of the Plot 94 issue on the standard basis.
Legal Topics
Breach of Fiduciary Duty, Interest on Trust Monies, Compound Interest, Costs on Discontinuance, Constructive Trust, Accounting Between Co Owners
Equity Trusts Civil Procedure Breach of Fiduciary Duty Interest on Trust Monies Compound Interest Costs on Discontinuance Constructive Trust +1 more

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Parties

Nirav Shah

Claimant

Ashok Shah

Defendant/part 20 Claimant

Jaivant Shah

First Part 20 Defendant

Bharat Shah

Second Part 20 Defendant

Procedural Posture

Civil (chancery, Business/property) / Post Trial Judgment on Interest and Costs

Legal Issues

  1. 1 Whether interest should be awarded on sums for which parties are accountable despite absence of a formal prayer for interest
  2. 2 Whether interest should be compound or simple, at what rate and for what period
  3. 3 Whether Jaivant should account to Ashok for proceeds of Plot 94 and who should bear the costs after discontinuance

Ratio Decidendi

The absence of a formal prayer for interest does not preclude an award of interest where the issue has been identified, no prejudice is caused, and the defect can be waived under CPR 3.10. Compound interest at 3% above base rate is appropriate for sums arising from breach of fiduciary duty, while only Judgment Act interest applies to other sums. On costs, the usual presumption applies and Ashok must pay Jaivant's costs of the Plot 94 issue, but not on an indemnity basis.

Court Disposition

Interest awarded to Ashok on a compound basis at 3% above base rate for sums arising from breach of fiduciary duty; only Judgment Act interest for other sums; Ashok to pay Jaivant's costs of the Plot 94 issue on the standard basis.

Orders

  • Ashok's failure to plead interest is waived under CPR 3.10.
  • Compound interest at 3% above base rate awarded on sums due to Ashok from Jaivant/Bharat for breach of fiduciary duty, from date of sale to 1 November 2017, then Judgment Act interest at 8% simple.