Agarwala v Agarwala [2016] EWCA Civ 1252 (08 December 2016)

Agarwala v Agarwala [2016] EWCA Civ 1252 (08 December 2016)

Compensation for breach of trust must be calculated at the notional profit rate only for the period of unlawful possession (July 2008 to 5 December 2012), and at the actual profit rate for the period of lawful possession (6 December 2012 to April 2015), with appropriate deductions for management charges and payments under the trust agreement.

Citation
[2016] EWCA Civ 1252
Parties
Appellant: Jaci Agarwala; Respondent: Sunil Agarwala
Jurisdiction
England and Wales
Judgment Date
08 December 2016
Procedural Posture
Civil Appeal / Appeal From Trial Court Judgment
Outcome
Appeal allowed in part, matter remitted to trial judge for recalculation of compensation
Legal Topics
Bare Trust, Beneficial Ownership, Equitable Compensation, Account for Profits, Management Charges, Occupational Rent, Remedies for Breach of Trust
Trusts Property Equity Bare Trust Beneficial Ownership Equitable Compensation Account for Profits Management Charges +2 more

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Parties

Jaci Agarwala

Appellant

Sunil Agarwala

Respondent

Procedural Posture

Civil Appeal / Appeal From Trial Court Judgment

Legal Issues

  1. 1 Whether the appellant was liable to pay equitable compensation for loss of profits to the respondent as sole beneficial owner
  2. 2 Proper calculation of compensation: notional vs actual profits
  3. 3 Appropriate deduction for management charges and payments under the trust agreement

Ratio Decidendi

Compensation for breach of trust must be calculated at the notional profit rate only for the period of unlawful possession (July 2008 to 5 December 2012), and at the actual profit rate for the period of lawful possession (6 December 2012 to April 2015), with appropriate deductions for management charges and payments under the trust agreement.

Court Disposition

Appeal allowed in part, matter remitted to trial judge for recalculation of compensation

Orders

  • Matter remitted to HHJ Moloney to settle amounts payable following amendments made by Court of Appeal
  • Appellant to file accounts for period of lawful possession