Agarwala v Agarwala

Agarwala v Agarwala

The judge erred in calculating compensation at the notional profit rate for the entire period from July 2008 to July 2014. The notional profit rate should apply only until 5 December 2012, after which the actual profit rate applies, as the appellant's possession became lawful following the court's order. The judge was correct to reduce the management fee to £500 per month, but a modest additional allowance for management should be made. The matter is remitted to the trial judge for recalculation based on these principles.

Parties
Appellant: Jaci Agarwala; Respondent: Sunil Agarwala
Jurisdiction
England and Wales
Judgment Date
08 December 2016
Procedural Posture
Civil Appeal / Appeal Judgment
Outcome
Appeal allowed in part, matter remitted for recalculation of compensation.
Legal Topics
Breach of Trust, Equitable Compensation, Beneficial Ownership, Account of Profits, Remedies
Trusts Equity Property Law Breach of Trust Equitable Compensation Beneficial Ownership Account of Profits Remedies

Case Brief

Summary, issues, holding and outcome

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Parties

Jaci Agarwala

Appellant

Sunil Agarwala

Respondent

Procedural Posture

Civil Appeal / Appeal Judgment

Legal Issues

  1. 1 Whether the judge erred in calculating equitable compensation based on notional profit rather than actual profit after December 2012
  2. 2 Whether the judge erred in substituting a management fee with a lower monthly payment to the appellant
  3. 3 Whether the appellant was entitled to offset a counterclaim for £800 per month

Ratio Decidendi

The judge erred in calculating compensation at the notional profit rate for the entire period from July 2008 to July 2014. The notional profit rate should apply only until 5 December 2012, after which the actual profit rate applies, as the appellant's possession became lawful following the court's order. The judge was correct to reduce the management fee to £500 per month, but a modest additional allowance for management should be made. The matter is remitted to the trial judge for recalculation based on these principles.

Court Disposition

Appeal allowed in part, matter remitted for recalculation of compensation.

Orders

  • The matter is remitted to HHJ Moloney to settle the amounts payable in light of the amendments made by the Court of Appeal.
  • All other grounds of appeal are dismissed.