FHR European Ventures LLP & Ors v Mankarious & Ors

FHR European Ventures LLP & Ors v Mankarious & Ors

Cedar breached fiduciary duty by failing to make full disclosure of €10 million commission to all principals; commission must be accounted for to Claimants and Cedar is not entitled to contractual remuneration for work relating to the Hotel, but may recover proportionate fees for unrelated work on other hotels.

Source-derived case information.

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 Dubai (Bermuda) Ltd; Claimant: Bank of Scotland PLC; Claimant: Uberior Ventures Ltd; Defendant: Ramsey Neil Mankarious; Defendant: Cedar Capital Partners LLC; Defendant: Cedar Capital Partners Ltd
Jurisdiction
England and Wales
Judgment Date
05 September 2011
Procedural Posture
Civil / Judgment
Outcome
Judgment for Claimants in respect of €10 million commission; Defendants entitled to proportionate remuneration for unrelated work.
Legal Topics
Fiduciary Duty, Undisclosed Commission, Conflict of Interest, Constructive Trust, Quantum Meruit
Agency Equity Commercial Law Fiduciary Duty Undisclosed Commission Conflict of Interest Constructive Trust Quantum Meruit

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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 Dubai (Bermuda) Ltd

Claimant

Bank of Scotland PLC

Claimant

Uberior Ventures Ltd

Claimant

Ramsey Neil Mankarious

Defendant

Cedar Capital Partners LLC

Defendant

Cedar Capital Partners Ltd

Defendant

Procedural Posture

Civil / Judgment

Legal Issues

  1. 1 Whether Cedar breached fiduciary duty by failing to disclose commission from vendor to principals
  2. 2 Whether Cedar is entitled to retain €10 million commission
  3. 3 Whether Cedar is entitled to contractual or restitutionary remuneration for work done

Ratio Decidendi

Cedar breached fiduciary duty by failing to make full disclosure of €10 million commission to all principals; commission must be accounted for to Claimants and Cedar is not entitled to contractual remuneration for work relating to the Hotel, but may recover proportionate fees for unrelated work on other hotels.

Court Disposition

Judgment for Claimants in respect of €10 million commission; Defendants entitled to proportionate remuneration for unrelated work.

Orders

  • Defendants must account for €10 million commission to Claimants.
  • Defendants entitled to £227,497 (+VAT) for work on other hotels.