O'Keefe & Anor (In Their Capacity As Joint Liquidators of Level One Residential (Jersey) Ltd and Special Opportunity Holdings Ltd) v Caner & Ors

O'Keefe & Anor (In Their Capacity As Joint Liquidators of Level One Residential (Jersey) Ltd and Special Opportunity Holdings Ltd) v Caner & Ors

The prescription period for claims against directors for breach of fiduciary duty and duty of care under Article 74(1) Companies (Jersey) Law 1991 is 10 years. Neither the 3-year period for torts nor the 3-year period for breach of trust applies directly or by analogy. The duties are not tortious, and the trust limitation regime is not sufficiently analogous to displace the default period. This applies to both limbs of Article 74(1).

Parties
Applicant (joint Liquidator): Anne O’Keefe; Applicant (joint Liquidator): Paul Beveridge; First Respondent: Cevdet Caner; Second Respondent: Christopher Henry Lovell; Third Respondent: Richard Boleat; Fourth Respondent: Leslie Norman; Fifth Respondent: Tobias Matthews; Sixth Respondent: Capita Trustees Limited
Jurisdiction
England and Wales
Judgment Date
15 May 2017
Procedural Posture
Preliminary Issue in Insolvency Proceedings / Judgment on Preliminary Issue (limitation/prescription Under Jersey Law)
Outcome
Preliminary issue determined in favour of applicants; claims are not time-barred under Jersey law.
Legal Topics
Limitation/perscription Periods, Directors’ Duties, Breach of Fiduciary Duty, Breach of Duty of Care, Statutory Interpretation, Analogous Application of Limitation Periods
Insolvency Company Law Conflict of Laws Trusts Law Limitation/perscription Periods Directors’ Duties Breach of Fiduciary Duty Breach of Duty of Care +2 more

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Parties

Anne O’Keefe

Applicant (joint Liquidator)

Paul Beveridge

Applicant (joint Liquidator)

Cevdet Caner

First Respondent

Christopher Henry Lovell

Second Respondent

Richard Boleat

Third Respondent

Leslie Norman

Fourth Respondent

Tobias Matthews

Fifth Respondent

Capita Trustees Limited

Sixth Respondent

Procedural Posture

Preliminary Issue in Insolvency Proceedings / Judgment on Preliminary Issue (limitation/prescription Under Jersey Law)

Legal Issues

  1. 1 Whether claims against directors for breach of fiduciary duty and duty of care under Article 74(1) Companies (Jersey) Law 1991 are time-barred as a matter of Jersey law
  2. 2 Whether the applicable prescription period is 3 years (tort or trust) or 10 years (default for personal actions)

Ratio Decidendi

The prescription period for claims against directors for breach of fiduciary duty and duty of care under Article 74(1) Companies (Jersey) Law 1991 is 10 years. Neither the 3-year period for torts nor the 3-year period for breach of trust applies directly or by analogy. The duties are not tortious, and the trust limitation regime is not sufficiently analogous to displace the default period. This applies to both limbs of Article 74(1).

Court Disposition

Preliminary issue determined in favour of applicants; claims are not time-barred under Jersey law.

Orders

  • Prescription period for claims under Article 74(1) Companies (Jersey) Law 1991 is 10 years.
  • If parties cannot agree consequential matters, further hearing to be scheduled.