Nolan -v- Minerva Trust and Others [2014] JRC 078A (25 March 2014)

Nolan -v- Minerva Trust and Others [2014] JRC 078A (25 March 2014)

The Defendants dishonestly assisted Mr Walsh in breach of trust by failing to make proper inquiries and by facilitating the misapplication of the Plaintiffs' investment funds for purposes unrelated to the intended investments, including for Mr Walsh's personal benefit. The Defendants' conduct went beyond mere negligence and amounted to dishonesty in the circumstances. The Plaintiffs' claims are not barred by prescription.

Citation
[2014] JRC 078A
Parties
Plaintiffs: Joan Nolan, Richard Nolan, Seamus Nolan, Patricia Nolan, Ann Nolan, Elizabeth Nolan, Raymond Nolan, John Nolan, Brendan Nolan, Sally Nolan, Oliver Nolan, Kevin Nolan, Noel Nolan, Serene Investments Limited, Bilberry Investments Holdings Limited, Nolan Transport Retirement Benefit Scheme; Defendants: Minerva Trust and Corporate Services Limited (formerly Minerva Financial Services Limited), Michael Cordwell, Peter Nicolle, Stephen Morgan
Jurisdiction
Jersey
Judgment Date
25 March 2014
Procedural Posture
Civil Trusts/fraud/dishonest Assistance / Judgment After Trial
Outcome
Judgment for the Plaintiffs
Legal Topics
Dishonest Assistance, Constructive Trust, Resulting Trust, Quistclose Trust, Breach of Trust, Prescription (limitation), Damages
Equity and Trusts Fraud Company Law Dishonest Assistance Constructive Trust Resulting Trust Quistclose Trust Breach of Trust +2 more

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Parties

Joan Nolan, Richard Nolan, Seamus Nolan, Patricia Nolan, Ann Nolan, Elizabeth Nolan, Raymond Nolan, John Nolan, Brendan Nolan, Sally Nolan, Oliver Nolan, Kevin Nolan, Noel Nolan, Serene Investments Limited, Bilberry Investments Holdings Limited, Nolan Transport Retirement Benefit Scheme

Plaintiffs

Minerva Trust and Corporate Services Limited (formerly Minerva Financial Services Limited), Michael Cordwell, Peter Nicolle, Stephen Morgan

Defendants

Procedural Posture

Civil Trusts/fraud/dishonest Assistance / Judgment After Trial

Legal Issues

  1. 1 Whether the Defendants dishonestly assisted Mr Walsh in breach of trust regarding the Plaintiffs' investments
  2. 2 Whether a trust (constructive, Quistclose, or resulting) existed over the Plaintiffs' funds
  3. 3 Whether the Defendants' conduct amounted to dishonesty or mere negligence

Ratio Decidendi

The Defendants dishonestly assisted Mr Walsh in breach of trust by failing to make proper inquiries and by facilitating the misapplication of the Plaintiffs' investment funds for purposes unrelated to the intended investments, including for Mr Walsh's personal benefit. The Defendants' conduct went beyond mere negligence and amounted to dishonesty in the circumstances. The Plaintiffs' claims are not barred by prescription.

Court Disposition

Judgment for the Plaintiffs

Orders

  • The Defendants are liable to the Plaintiffs for dishonest assistance in breach of trust.
  • The Defendants shall pay the Plaintiffs' losses in the amounts of £5,257,074.25 and €8,398,000.