UCP Plc v Nectrus Ltd

UCP Plc v Nectrus Ltd

Nectrus, as Investment Manager, owed contractual duties to UCP under the IMA, including obligations to report and advise on the investment of surplus funds and to comply with the Treasury Policy. Nectrus breached these duties by permitting and failing to report the placement of funds in inappropriate 'Sham Entities' after the adoption of the Treasury Policy, resulting in loss to UCP. UCP is entitled to enforce these obligations as a party to the IMA.

Parties
Claimant: UCP PLC; Defendant: Nectrus Limited
Jurisdiction
England and Wales
Judgment Date
05 July 2019
Procedural Posture
Commercial / Liability Trial (split Trial; Quantum Reserved)
Outcome
Liability established against Nectrus for breach of contract; quantum and reflective loss issues reserved for later determination.
Legal Topics
Breach of Investment Management Agreement, Duties of Investment Manager, Enforcement of Contractual Obligations, Reflective Loss, Treasury Policy Compliance
Contract Law Commercial Law Breach of Investment Management Agreement Duties of Investment Manager Enforcement of Contractual Obligations Reflective Loss Treasury Policy Compliance

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Parties

UCP PLC

Claimant

Nectrus Limited

Defendant

Procedural Posture

Commercial / Liability Trial (split Trial; Quantum Reserved)

Legal Issues

  1. 1 Whether Nectrus owed duties to UCP under the IMA
  2. 2 Nature and scope of Nectrus' duties under the IMA
  3. 3 Whether Nectrus breached its duties in relation to the Stranded Deposits

Ratio Decidendi

Nectrus, as Investment Manager, owed contractual duties to UCP under the IMA, including obligations to report and advise on the investment of surplus funds and to comply with the Treasury Policy. Nectrus breached these duties by permitting and failing to report the placement of funds in inappropriate 'Sham Entities' after the adoption of the Treasury Policy, resulting in loss to UCP. UCP is entitled to enforce these obligations as a party to the IMA.

Court Disposition

Liability established against Nectrus for breach of contract; quantum and reflective loss issues reserved for later determination.

Orders

  • Parties to agree next steps in accordance with split trial direction; quantum and reflective loss to be determined if necessary.
  • Court prepared to consider order directing Nectrus to cooperate in discontinuing Indian injunction proceedings if sought.