UCP Plc v Nectrus Ltd [2019] EWHC 1732 (Comm) (05 July 2019)

UCP Plc v Nectrus Ltd [2019] EWHC 1732 (Comm) (05 July 2019)

Nectrus owed enforceable duties to UCP under the IMA to advise and report on surplus funds, including compliance with UCP's Treasury Policy; Nectrus breached those duties by permitting and failing to report investments in Sham Entities, resulting in loss of funds.

Citation
[2019] EWHC 1732 (Comm)
Parties
Claimant: UCP PLC; Defendant: Nectrus Limited
Jurisdiction
England and Wales
Judgment Date
05 July 2019
Procedural Posture
Commercial Court Claim / Liability Trial (quantum Split Off)
Outcome
Claimant succeeds on liability; quantum and loss issues to be determined in subsequent proceedings.
Legal Topics
Investment Management Agreement, Breach of Contract, Duties of Investment Manager, Reflective Loss, Reporting Obligations, Treasury Policy Compliance
Contract Law Commercial Law Investment Management Agreement Breach of Contract Duties of Investment Manager Reflective Loss Reporting Obligations Treasury Policy Compliance

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Parties

UCP PLC

Claimant

Nectrus Limited

Defendant

Procedural Posture

Commercial Court Claim / Liability Trial (quantum Split Off)

Legal Issues

  1. 1 Whether Nectrus owed duties to UCP under the IMA
  2. 2 Nature and scope of Nectrus' duties as Investment Manager
  3. 3 Whether Nectrus breached its duties regarding Stranded Deposits

Ratio Decidendi

Nectrus owed enforceable duties to UCP under the IMA to advise and report on surplus funds, including compliance with UCP's Treasury Policy; Nectrus breached those duties by permitting and failing to report investments in Sham Entities, resulting in loss of funds.

Court Disposition

Claimant succeeds on liability; quantum and loss issues to be determined in subsequent proceedings.

Orders

  • Declaration that UCP is entitled to enforce Nectrus' obligations under the IMA
  • Declaration that Nectrus breached its duties regarding the Stranded Deposits