LIV Bridging Finance Ltd v EAD Solicitors LLB

EAD breached fiduciary duty by paying away loan monies without obtaining first legal charges as instructed; LIV entitled to equitable compensation for losses directly caused by breach, limited to scope of EAD's duty to obtain security.

Parties: Claimant: LIV Bridging Finance Limited; Defendant: EAD Solicitors LLP (in administration)
Jurisdiction: England and Wales
Judgment Date: 18 June 2020
Procedural Posture: Civil / Summary Judgment
Outcome: summary judgment granted in part
Legal Topics: Breach of Trust, Equitable Compensation, Solicitor's Duties, Summary Judgment, Quantification of Loss

Trusts Fiduciary Duty Professional Negligence Breach of Trust Equitable Compensation Solicitor's Duties Summary Judgment Quantification of Loss

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Parties

LIV Bridging Finance Limited

Claimant

EAD Solicitors LLP (in administration)

Defendant

Procedural Posture

Civil / Summary Judgment

Legal Issues

1 Whether EAD Solicitors LLP breached fiduciary duties by paying away loan monies without obtaining proper security
2 Whether LIV is entitled to equitable compensation for losses sustained due to breach of trust
3 Scope and quantification of equitable compensation for breach of fiduciary duty

Ratio Decidendi

Court Disposition

summary judgment granted in part

Orders

Judgment for LIV Bridging Finance Limited in the sum of £250,000 for Second and Third Loans
Entitlement to equitable or statutory interest on £250,000; assessment and calculation of interest and consequential matters to be determined on written submissions