Independent Trustee Service Ltd v GP Noble Trustees Ltd & Ors [2010] EWHC 1653 (Ch) (01 July 2010)

Independent Trustee Service Ltd v GP Noble Trustees Ltd & Ors [2010] EWHC 1653 (Ch) (01 July 2010)

GPN and BDC, as professional trustees, breached their fiduciary duties and/or were negligent in the investment and transfer of pension scheme assets, enabling fraudulent misapplication of funds. None of the Defendants who received trust assets were bona fide purchasers for value. ITS is entitled to recover traceable proceeds and proprietary remedies. The court ordered immediate payment out of recovered funds to ITS. Determination of dishonesty and liability of certain Defendants (Pitcher, Cordell, Starkey, Webb, Line Trust Corporation) was adjourned.

Citation
[2010] EWHC 1653 (Ch)
Parties
Claimant: Independent Trustee Service Ltd; Defendant: GP Noble Trustees Ltd; Defendant: BDC Trustees Ltd; Defendant: Graham Pitcher; Defendant: Gary Cordell; Defendant: Peter Malmstrom; Defendant: Anthony James Morris; Defendant: Alexander Starkey; Defendant: Christopher Webb; Defendant: Aspect Invest & Finance Ltd; Defendant: Whitepoint Ltd; Defendant: South East Asia Real Estate (Thailand) Co Ltd; Defendant: Amac Asset Management & Consultants Ltd; Defendant: Number Thirty One SA; Defendant: La Matze Consultants SA; Defendant: La Matze Real Estate SA; Defendant: Multiple & Unilateral Financial Futures (Thai Investments) Ltd; Defendant: Mutual Financial Futures (Australia) Pty Ltd; Defendant: Multiple & Unilateral Financial Futures Ltd; Defendant: Morris Family Holdings Ltd; Defendant: Newdale Investments Ltd; Defendant: Edgerbury Investments Ltd; Defendant: Caprio International Ltd; Defendant: Davidia Global Ltd; Defendant: Line Trust Corporation Ltd; Defendant: Glencalvie Ltd; Defendant: Benessia Global Ltd; Defendant: Shellwind Holding Ltd
Jurisdiction
England and Wales
Judgment Date
01 July 2010
Procedural Posture
Chancery Division Civil Claim / Post Trial Judgment (partly Final, Partly Adjourned)
Outcome
Judgment for Claimant (ITS) against Defendants (except for adjourned claims); immediate payment out of recovered funds ordered; further issues against certain Defendants adjourned.
Legal Topics
Breach of Trust, Dishonest Assistance, Knowing Receipt, Tracing, Trustee Duties, Negligence, Proprietary Claims, Vicarious Liability, Pension Scheme Mismanagement
Trusts and Equity Pensions Law Fraud Company Law Breach of Trust Dishonest Assistance Knowing Receipt Tracing +5 more

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Parties

Independent Trustee Service Ltd

Claimant

GP Noble Trustees Ltd

Defendant

BDC Trustees Ltd

Defendant

Graham Pitcher

Defendant

Gary Cordell

Defendant

Peter Malmstrom

Defendant

Anthony James Morris

Defendant

Alexander Starkey

Defendant

Christopher Webb

Defendant

Aspect Invest & Finance Ltd

Defendant

Whitepoint Ltd

Defendant

South East Asia Real Estate (Thailand) Co Ltd

Defendant

Amac Asset Management & Consultants Ltd

Defendant

Number Thirty One SA

Defendant

La Matze Consultants SA

Defendant

La Matze Real Estate SA

Defendant

Multiple & Unilateral Financial Futures (Thai Investments) Ltd

Defendant

Mutual Financial Futures (Australia) Pty Ltd

Defendant

Multiple & Unilateral Financial Futures Ltd

Defendant

Morris Family Holdings Ltd

Defendant

Newdale Investments Ltd

Defendant

Edgerbury Investments Ltd

Defendant

Caprio International Ltd

Defendant

Davidia Global Ltd

Defendant

Line Trust Corporation Ltd

Defendant

Glencalvie Ltd

Defendant

Benessia Global Ltd

Defendant

Shellwind Holding Ltd

Defendant

Procedural Posture

Chancery Division Civil Claim / Post Trial Judgment (partly Final, Partly Adjourned)

Legal Issues

  1. 1 Whether GPN and BDC as trustees breached fiduciary duties and/or were negligent in investment decisions
  2. 2 Whether Defendants are liable for dishonest assistance or knowing receipt of misapplied trust assets
  3. 3 Whether proprietary claims and tracing remedies are available to recover misapplied pension funds

Ratio Decidendi

GPN and BDC, as professional trustees, breached their fiduciary duties and/or were negligent in the investment and transfer of pension scheme assets, enabling fraudulent misapplication of funds. None of the Defendants who received trust assets were bona fide purchasers for value. ITS is entitled to recover traceable proceeds and proprietary remedies. The court ordered immediate payment out of recovered funds to ITS. Determination of dishonesty and liability of certain Defendants (Pitcher, Cordell, Starkey, Webb, Line Trust Corporation) was adjourned.

Court Disposition

Judgment for Claimant (ITS) against Defendants (except for adjourned claims); immediate payment out of recovered funds ordered; further issues against certain Defendants adjourned.

Orders

  • Monies in court (£31,000,000) to be paid out immediately to ITS' solicitors
  • ITS entitled to £531,258.31 already paid by Number Thirty One