HPOR Servicos De Consultoria Ltda v Dryships Inc & Anor

Forfeiture of contractually earned remuneration is appropriate where an agent commits serious breaches of fiduciary duty that go to the root of the contract and infect the relationship from its inception, even if valuable services were provided. Account of profits does not apply to contractually agreed remuneration from the principal; forfeiture is the relevant remedy.

Parties: Claimant: HPOR SERVICOS DE CONSULTORIA LTDA; Defendant: DRYSHIPS INC.; Defendant: OCEAN RIG UDW INC.
Jurisdiction: England and Wales
Judgment Date: 13 December 2018
Procedural Posture: Arbitration Appeal / Judgment on Appeal Under Arbitration Act 1996, Section 69
Outcome: Appeal dismissed; Tribunal's decision upheld.
Legal Topics: Forfeiture of Remuneration, Breach of Fiduciary Duty, Account of Profits, Conflict of Interest, Remedies for Breach of Fiduciary Duty

Arbitration Agency Law Equity Forfeiture of Remuneration Breach of Fiduciary Duty Account of Profits Conflict of Interest Remedies for Breach of Fiduciary Duty

Case Brief

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Parties

HPOR SERVICOS DE CONSULTORIA LTDA

Claimant

DRYSHIPS INC.

Defendant

OCEAN RIG UDW INC.

Defendant

Procedural Posture

Arbitration Appeal / Judgment on Appeal Under Arbitration Act 1996, Section 69

Legal Issues

1 In what circumstances is it appropriate to order that an agent should forfeit and/or become liable to account for its own contractually earned/accrued remuneration by way of remedy for its breach of fiduciary duty

Ratio Decidendi

Court Disposition

Appeal dismissed; Tribunal's decision upheld.

Orders

HPOR's past remuneration is forfeit; HPOR not entitled to retain or recover contractually earned/accrued remuneration under the Agency Contracts.