FHR European Ventures LLP & Ors v Mankarious & Ors

FHR European Ventures LLP & Ors v Mankarious & Ors

Mr Mankarious and Cedar Ltd were in breach of fiduciary duty by receiving monies derived from the Fee, and hold such sums on constructive trust for the claimants. The claimants are entitled to trace into assets acquired with the Fee, but only to the extent that Fee monies were actually used, applying the Re Hallett principle rather than Re Oatway. The claimants are entitled to monetary judgments for sums received by Mr Mankarious and Cedar Ltd, and to a pro rata beneficial interest in the life insurance policies to the extent premiums were paid from the Fee.

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
Civil / Post Trial Application for Account, Tracing, and Monetary Judgment
Outcome
Application granted in part; declarations and monetary judgments made as specified.
Legal Topics
Constructive Trust, Breach of Fiduciary Duty, Tracing, Knowing Receipt, Equitable Remedies
Equity and Trusts Property Law Civil Procedure Constructive Trust Breach of Fiduciary Duty Tracing Knowing Receipt Equitable Remedies

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 4 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

Civil / Post Trial Application for Account, Tracing, and Monetary Judgment

Legal Issues

  1. 1 Whether Mr Mankarious and Cedar Ltd were in breach of fiduciary duty in receiving monies derived from the Fee
  2. 2 Whether the claimants are entitled to trace the Fee into the purchase of the Property and other assets
  3. 3 Whether the claimants are entitled to a proportionate share or charge over the Property and life insurance policies

Ratio Decidendi

Mr Mankarious and Cedar Ltd were in breach of fiduciary duty by receiving monies derived from the Fee, and hold such sums on constructive trust for the claimants. The claimants are entitled to trace into assets acquired with the Fee, but only to the extent that Fee monies were actually used, applying the Re Hallett principle rather than Re Oatway. The claimants are entitled to monetary judgments for sums received by Mr Mankarious and Cedar Ltd, and to a pro rata beneficial interest in the life insurance policies to the extent premiums were paid from the Fee.

Court Disposition

Application granted in part; declarations and monetary judgments made as specified.

Orders

  • Declaration that claimants are entitled to a proportionate share in the Property based on Fee-derived funds used for purchase.
  • Declaration that claimants have a pro rata beneficial interest in the life insurance policies to the extent of premiums paid from the Fee.