Montrose Investment Ltd. v Orion Nominees Ltd. & Ors

Montrose Investment Ltd. v Orion Nominees Ltd. & Ors

Orion, despite its breach of trust vis-à-vis Montrose, retains an enforceable right to an account from Mr Upton for the proceeds of shares, as Mr Upton knew before distribution that Orion had not 'dropped out' and was the proper entity to whom he should account.

Parties
Claimant: Montrose Investment Ltd; Defendant / Part 20 Claimant: Orion Nominees Ltd; Defendant: Richmond Corporate Services Ltd; Part 20 Defendant: Mr Richard Upton; Part 20 Defendant: Birchall Ventures Ltd
Jurisdiction
England and Wales
Judgment Date
28 July 2004
Procedural Posture
Civil Appeal / Appeal From High Court Judgment on Part 20 Claim
Outcome
Appeal allowed
Legal Topics
Breach of Trust, Nominee Shareholding, Constructive Trust, Obligations to Account
Trusts Equity Company Law Breach of Trust Nominee Shareholding Constructive Trust Obligations to Account

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 2 Party arguments 2 Amounts and remedies 4
Sign in to unlock

Parties

Montrose Investment Ltd

Claimant

Orion Nominees Ltd

Defendant / Part 20 Claimant

Richmond Corporate Services Ltd

Defendant

Mr Richard Upton

Part 20 Defendant

Birchall Ventures Ltd

Part 20 Defendant

Procedural Posture

Civil Appeal / Appeal From High Court Judgment on Part 20 Claim

Legal Issues

  1. 1 Whether Orion, having acted in breach of trust, retains a right to claim an account from Mr Upton for proceeds of shares held as nominee
  2. 2 Whether Mr Upton's knowledge or belief about the beneficial ownership affects his obligation to account

Ratio Decidendi

Orion, despite its breach of trust vis-à-vis Montrose, retains an enforceable right to an account from Mr Upton for the proceeds of shares, as Mr Upton knew before distribution that Orion had not 'dropped out' and was the proper entity to whom he should account.

Court Disposition

Appeal allowed

Orders

  • An account to be taken as between Orion and Mr Upton