Onzm & Anor v Watson & Ors [2018] EWHC 2483 (Ch) (25 September 2018)

Onzm & Anor v Watson & Ors [2018] EWHC 2483 (Ch) (25 September 2018)

The appropriate rate of equitable interest for a defaulting trustee or constructive trustee is a proxy for the investment return that trust funds with the general characteristics of the fund in question could expect to make. Based on objective data, a rate of 6.5% per annum, compounded annually, is awarded.

Citation
[2018] EWHC 2483 (Ch)
Parties
Claimant: Sir Owen George Glenn KNZM ONZM; Claimant: Kea Investments Limited; Defendant: Eric John Watson; Defendant: Novatrust Limited; Defendant: Miles John Anthony Leahy; Defendant: Nucopia Partners Limited; Defendant: Spartan Capital Limited; Defendant: Munil Development Inc
Jurisdiction
England and Wales
Judgment Date
25 September 2018
Procedural Posture
Chancery Civil Claim / Post Trial Consequential Hearing on Interest Rate
Outcome
Interest rate determined
Legal Topics
Equitable Compensation, Interest Rate Determination, Breach of Trust, Constructive Trust, Fraud
Equity Trusts Remedies Equitable Compensation Interest Rate Determination Breach of Trust Constructive Trust Fraud

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 3 Authorities cited 13 Party arguments 2 Amounts and remedies 2
Sign in to unlock

Parties

Sir Owen George Glenn KNZM ONZM

Claimant

Kea Investments Limited

Claimant

Eric John Watson

Defendant

Novatrust Limited

Defendant

Miles John Anthony Leahy

Defendant

Nucopia Partners Limited

Defendant

Spartan Capital Limited

Defendant

Munil Development Inc

Defendant

Procedural Posture

Chancery Civil Claim / Post Trial Consequential Hearing on Interest Rate

Legal Issues

  1. 1 What is the appropriate rate of equitable interest to award against a defaulting trustee or constructive trustee?
  2. 2 Should the rate be based on investment returns or borrowing costs?

Ratio Decidendi

The appropriate rate of equitable interest for a defaulting trustee or constructive trustee is a proxy for the investment return that trust funds with the general characteristics of the fund in question could expect to make. Based on objective data, a rate of 6.5% per annum, compounded annually, is awarded.

Court Disposition

Interest rate determined

Orders

  • Equitable interest awarded at 6.5% per annum, compounded annually, on £129m for the relevant period.