South Bank Hotel Management Company Ltd v Galliard Hotels Ltd & Ors [2026] EWCA Civ 56 (06 February 2026)

South Bank Hotel Management Company Ltd v Galliard Hotels Ltd & Ors [2026] EWCA Civ 56 (06 February 2026)

Section 21(1)(b) of the Limitation Act 1980 applies to South Bank's claim against Mr Conway, as the grant of the Lease diminished South Bank's beneficial interest in the annex and constituted a conversion of trust property to Mr Conway's use via his economic interest in Lodgeshine. The claim is not statute-barred and must be remitted to the High Court for determination of merits.

Citation
[2026] EWCA Civ 56
Parties
Claimant/appellant/defendant/appellant: South Bank Hotel Management Company Limited; Defendant/respondent: Galliard Hotels Limited; Defendant/respondent: Stephen Stuart Solomon Conway; Defendant/respondent: Christopher John Duffy; Defendant/respondent/claimant/respondent: Lodgeshine Limited; Defendant/respondent: Galliard Homes Limited
Jurisdiction
England and Wales
Judgment Date
06 February 2026
Procedural Posture
Civil Appeal / Court of Appeal Judgment
Outcome
Appeal allowed in part; claim against Mr Conway not statute-barred; remitted to High Court for determination.
Legal Topics
Directors' Fiduciary Duties, Limitation Periods, Constructive Trusts, Breach of Trust, Equitable Compensation, Lease Validity, Statute Barred Claims, Beneficial Interest in Land
Company Law Trusts Property Law Equity Contract Law Directors' Fiduciary Duties Limitation Periods Constructive Trusts +5 more

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Parties

South Bank Hotel Management Company Limited

Claimant/appellant/defendant/appellant

Galliard Hotels Limited

Defendant/respondent

Stephen Stuart Solomon Conway

Defendant/respondent

Christopher John Duffy

Defendant/respondent

Lodgeshine Limited

Defendant/respondent/claimant/respondent

Galliard Homes Limited

Defendant/respondent

Procedural Posture

Civil Appeal / Court of Appeal Judgment

Legal Issues

  1. 1 Whether section 21(1)(b) of the Limitation Act 1980 applies to the claim against Mr Conway
  2. 2 Whether South Bank's claim against Mr Conway is statute-barred
  3. 3 Whether South Bank can claim damages from Galliard Hotels Limited for breach of leases

Ratio Decidendi

Section 21(1)(b) of the Limitation Act 1980 applies to South Bank's claim against Mr Conway, as the grant of the Lease diminished South Bank's beneficial interest in the annex and constituted a conversion of trust property to Mr Conway's use via his economic interest in Lodgeshine. The claim is not statute-barred and must be remitted to the High Court for determination of merits.

Court Disposition

Appeal allowed in part; claim against Mr Conway not statute-barred; remitted to High Court for determination.

Orders

  • Matter remitted to High Court for determination of merits of claim against Mr Conway.
  • Previous order for South Bank to pay Lodgeshine £1,402,203.03 in arrears of rent stands pending further determination.