FHR European Ventures LLP & Ors v Mankarious & Ors [2016] EWHC 359 (Ch) (02 March 2016)

FHR European Ventures LLP & Ors v Mankarious & Ors [2016] EWHC 359 (Ch) (02 March 2016)

Mr Mankarious and Cedar Ltd were in breach of fiduciary duty by receiving monies derived from the Fee, and are liable as constructive trustees and for knowing receipt. The claimants are entitled to a proportionate share in the property and life insurance policies based on actual contributions from the Fee, but not for incidental costs or the full deposit where non-Fee funds were used. Re Hallett, not Re Oatway, applies to tracing in this case, limiting recovery to amounts directly traceable to the Fee.

Citation
[2016] EWHC 359 (Ch)
Parties
Claimant: FHR European Ventures LLP; Claimant: Kingdom Hotels International; Claimant: Kingdom 5-KR-176, LTD; Claimant: Fairmont Hotels and Resorts Inc; Claimant: Fairmont Dubai Holdings (Bermuda) Ltd; Claimant: Bank of Scotland PLC; Claimant: Uberior Ventures Limited; Defendant: Ramsey Neil Mankarious; Defendant: Cedar Capital Partners LLC; Defendant: Cedar Capital Partners Ltd
Jurisdiction
England and Wales
Judgment Date
02 March 2016
Procedural Posture
Chancery Division Civil Claim / Post Trial Application for Consequential Relief
Outcome
Application granted in part
Legal Topics
Constructive Trust, Fiduciary Duties, Tracing, Knowing Receipt, Equitable Compensation, Proprietary Remedies
Equity and Trusts Property Law Civil Procedure Constructive Trust Fiduciary Duties Tracing Knowing Receipt Equitable Compensation +1 more

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 5 Authorities cited 10 Party arguments 2 Amounts and remedies 11
Sign in to unlock

Parties

FHR European Ventures LLP

Claimant

Kingdom Hotels International

Claimant

Kingdom 5-KR-176, LTD

Claimant

Fairmont Hotels and Resorts Inc

Claimant

Fairmont Dubai Holdings (Bermuda) Ltd

Claimant

Bank of Scotland PLC

Claimant

Uberior Ventures Limited

Claimant

Ramsey Neil Mankarious

Defendant

Cedar Capital Partners LLC

Defendant

Cedar Capital Partners Ltd

Defendant

Procedural Posture

Chancery Division Civil Claim / Post Trial Application for Consequential Relief

Legal Issues

  1. 1 Whether Mr Mankarious and Cedar Ltd were in breach of fiduciary duty by receiving monies derived from the Fee
  2. 2 Whether claimants are entitled to a proportionate share or charge over the property purchased with misapplied funds
  3. 3 Whether claimants are entitled to a share in life insurance policies funded in part by misapplied funds

Ratio Decidendi

Mr Mankarious and Cedar Ltd were in breach of fiduciary duty by receiving monies derived from the Fee, and are liable as constructive trustees and for knowing receipt. The claimants are entitled to a proportionate share in the property and life insurance policies based on actual contributions from the Fee, but not for incidental costs or the full deposit where non-Fee funds were used. Re Hallett, not Re Oatway, applies to tracing in this case, limiting recovery to amounts directly traceable to the Fee.

Court Disposition

Application granted in part

Orders

  • Declaration that claimants are entitled to a proportionate share in the property at 41 Lyndhurst Road, London NW3 5PE, based on actual Fee-derived contributions to the deposit and completion payment, excluding non-Fee funds and incidental costs.
  • Declaration that claimants are entitled to a pro rata beneficial interest in two life insurance policies to the extent premiums were paid from the Fee.