FHR European Ventures Llp & Ors v Mankarious & Ors

FHR European Ventures Llp & Ors v Mankarious & Ors

The claimants are not entitled to a declaration that the €10 million commission is held on constructive trust for them, as they have not shown it was their property or derived from their opportunity. Costs should be awarded to the claimants against all defendants jointly and severally, as all resisted the claim and counterclaim together.

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
15 November 2011
Procedural Posture
Civil / Post Judgment Order Determination
Outcome
Order in favour of claimants for 90% of costs against all defendants jointly and severally; declaration in the form advanced by defendants with liberty to apply for further equitable relief.
Legal Topics
Constructive Trust, Secret Commission, Costs Liability, Fiduciary Duties, Proprietary Claims
Equity Fiduciary Law Constructive Trust Secret Commission Costs Liability Fiduciary Duties Proprietary Claims

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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 / Post Judgment Order Determination

Legal Issues

  1. 1 Whether costs should be awarded against all defendants jointly and severally or only the second defendant
  2. 2 Whether the declaration should state that the €10 million commission is held on constructive trust for the claimants

Ratio Decidendi

The claimants are not entitled to a declaration that the €10 million commission is held on constructive trust for them, as they have not shown it was their property or derived from their opportunity. Costs should be awarded to the claimants against all defendants jointly and severally, as all resisted the claim and counterclaim together.

Court Disposition

Order in favour of claimants for 90% of costs against all defendants jointly and severally; declaration in the form advanced by defendants with liberty to apply for further equitable relief.

Orders

  • Defendants jointly and severally liable for 90% of claimants' costs.
  • Declaration: Second Defendant, having failed to obtain fully informed consent of any of the Claimants to the commission payment made to it by Monte Carlo Grand Hotel Limited of €10 million in respect of the sale by MCGH of a long leasehold interest in the Hotel in December 2004 to the First Claimant, is liable to...