Rahman v Miah [2007] EWHC 3546 (Ch) (19 October 2007)

Rahman v Miah [2007] EWHC 3546 (Ch) (19 October 2007)

Defendant breached fiduciary duty by acquiring partnership property for himself without Claimant's knowledge or consent, failing to disclose opportunity and finance terms. The freehold is held on trust for both partners equally. Delay and alleged acquiescence do not bar Claimant's rights.

Citation
[2007] EWHC 3546 (Ch)
Parties
Claimant: Muzibur Rahman; Defendant: Mohammed Lebu Miah
Jurisdiction
England and Wales
Judgment Date
19 October 2007
Procedural Posture
Chancery Division Civil Claim / Judgment After Trial
Outcome
Claim succeeds. Declaration granted that freehold is held on trust for both parties equally. Defendant accountable for rents and profits. Partnership winding-up and accounts ordered. Undertakings remain in force until final order.
Legal Topics
Constructive Trust, Breach of Fiduciary Duty, Partnership Dissolution, Account of Profits, Acquiescence, Laches, Waiver
Equity Trusts Partnership Law Property Law Constructive Trust Breach of Fiduciary Duty Partnership Dissolution Account of Profits +3 more

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Parties

Muzibur Rahman

Claimant

Mohammed Lebu Miah

Defendant

Procedural Posture

Chancery Division Civil Claim / Judgment After Trial

Legal Issues

  1. 1 Did the Defendant breach fiduciary duty by acquiring partnership property for himself?
  2. 2 Is the freehold of Damson Lane held on trust for both partners?
  3. 3 Did the Claimant consent to the Defendant's purchase of the freehold?

Ratio Decidendi

Defendant breached fiduciary duty by acquiring partnership property for himself without Claimant's knowledge or consent, failing to disclose opportunity and finance terms. The freehold is held on trust for both partners equally. Delay and alleged acquiescence do not bar Claimant's rights.

Court Disposition

Claim succeeds. Declaration granted that freehold is held on trust for both parties equally. Defendant accountable for rents and profits. Partnership winding-up and accounts ordered. Undertakings remain in force until final order.

Orders

  • Declaration that freehold of Damson Lane is held on trust for Claimant and Defendant in equal shares.
  • Defendant accountable for all rents and profits received or receivable from Damson Lane.