Oberman v Collins & Anor

Oberman v Collins & Anor

The court found that there was no formal partnership but there was a common intention constructive trust over the property portfolio, entitling Ms Oberman to a 50% beneficial interest in the relevant properties. Mr Collins' conduct in managing Bluegen Limited was unfairly prejudicial, justifying an order for him to purchase Ms Oberman's shares at fair value without a minority discount and with adjustments to exclude certain liabilities and restore misapplied assets.

Parties
Claimant: Nicola Oberman; First Defendant: Shaun Collins; Second Defendant: Bluegen Limited
Jurisdiction
England and Wales
Judgment Date
21 December 2020
Procedural Posture
Civil (property/company) / Final Judgment After Trial
Outcome
Judgment for the claimant in part; declarations and orders granted as specified.
Legal Topics
Constructive Trusts, Partnerships, Unfair Prejudice, Beneficial Ownership, Fiduciary Duties, Proprietary Estoppel
Trusts Property Law Company Law Equity Constructive Trusts Partnerships Unfair Prejudice Beneficial Ownership +2 more

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Parties

Nicola Oberman

Claimant

Shaun Collins

First Defendant

Bluegen Limited

Second Defendant

Procedural Posture

Civil (property/company) / Final Judgment After Trial

Legal Issues

  1. 1 Whether the parties participated in a shared business endeavour amounting to a partnership or common intention constructive trust over properties acquired during their relationship
  2. 2 Whether the properties registered in the sole name of Mr Collins are held on trust for both parties
  3. 3 Whether Mr Collins' conduct in managing Bluegen Limited was unfairly prejudicial to Ms Oberman's interests as a shareholder

Ratio Decidendi

The court found that there was no formal partnership but there was a common intention constructive trust over the property portfolio, entitling Ms Oberman to a 50% beneficial interest in the relevant properties. Mr Collins' conduct in managing Bluegen Limited was unfairly prejudicial, justifying an order for him to purchase Ms Oberman's shares at fair value without a minority discount and with adjustments to exclude certain liabilities and restore misapplied assets.

Court Disposition

Judgment for the claimant in part; declarations and orders granted as specified.

Orders

  • Declaration that Ms Oberman has a 50% beneficial interest in specified properties (excluding third party properties)
  • Order for Mr Collins to account for mortgage sums, rental income, and sale proceeds from the portfolio