Barnett & Anor v Creggy

Barnett & Anor v Creggy

The defendant was not a trustee of the funds held in the offshore companies and is not liable to account for periods before 1 August 1998. However, he owed fiduciary duties as signatory and solicitor, and breached those duties by transferring US$1,192,836 from Pound to Dr Spiteri without authority. The claim for compensation for this sum is not barred by limitation or the reflective loss principle, and interest is awarded at 3% above six-month US$ LIBOR from the date of transfer. An account is ordered for sums received by or to the order of the defendant after 1 August 1998.

Parties
Claimant: Jeffrey Barnett; Claimant: Peter Barnett; Defendant: Stuart Creggy
Jurisdiction
England and Wales
Judgment Date
19 December 2014
Procedural Posture
Civil / Judgment After Trial
Outcome
Claim for account before 1 August 1998 dismissed; account ordered for sums received after 1 August 1998; compensation awarded to Jeffrey Barnett for unauthorised transfer to Dr Spiteri with interest.
Legal Topics
Account, Breach of Fiduciary Duty, Equitable Compensation, Limitation, Reflective Loss
Equity Trusts Fiduciary Law Account Breach of Fiduciary Duty Equitable Compensation Limitation Reflective Loss

Case Brief

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Parties

Jeffrey Barnett

Claimant

Peter Barnett

Claimant

Stuart Creggy

Defendant

Procedural Posture

Civil / Judgment After Trial

Legal Issues

  1. 1 Whether the defendant is liable to account for funds received from or on behalf of the claimants
  2. 2 Whether the defendant breached fiduciary duties in transferring funds to Dr Spiteri without authority
  3. 3 Whether the claimants are entitled to equitable compensation for unauthorised transfers

Ratio Decidendi

The defendant was not a trustee of the funds held in the offshore companies and is not liable to account for periods before 1 August 1998. However, he owed fiduciary duties as signatory and solicitor, and breached those duties by transferring US$1,192,836 from Pound to Dr Spiteri without authority. The claim for compensation for this sum is not barred by limitation or the reflective loss principle, and interest is awarded at 3% above six-month US$ LIBOR from the date of transfer. An account is ordered for sums received by or to the order of the defendant after 1 August 1998.

Court Disposition

Claim for account before 1 August 1998 dismissed; account ordered for sums received after 1 August 1998; compensation awarded to Jeffrey Barnett for unauthorised transfer to Dr Spiteri with interest.

Orders

  • Account of all sums received by or to the order of Mr Creggy from or at the direction of the claimants from 1 August 1998
  • Order that Mr Creggy pay to Jeffrey Barnett US$1,192,836 as compensation for breach of duty in procuring unauthorised payment to Dr Spiteri