In 2025 the Final Court of Appeal may have occasion to determine whether secret profits obtained in breach of fiduciary duty give rise to a constructive trust which constitutes a “true trust” for the purposes of the Limitation Ordinance. Coincidentally the UK Supreme Court will soon have the opportunity to consider whether equitable compensation is available against a dishonest assister in respect of a breach of trust involving similar secret profits, in a case where before the Court of Appeal it was common ground that such profits were held under a “true trust”. This talk will look at the two cases in question. (Hui Chun Ping v Hui Kau Mo [2024] 2 HKLRD 178 and Hotel Portfolio II UK Ltd (in liquidation) and another v Ruhan and another [2023] Bus LR 160). It will also provide an overview of the law on constructive trust, referring to such leading cases as Manchester Trust v Furness [1895] 2 QB 539, Selangor United Rubber Estates Ltd v Cradock (No 3) [1968] 1 WLR 1555, Grupo Torras SA v Al-Sabah [1999] CLC 1469, Ultraframe (UK) Ltd v Fielding [2005] EWHC 1638 and Barlow Clowes International Ltd (in liquidation) v Eurotrust International Ltd [2006] 1 WLR 1476.
Additionally, references will be made to cases such as Williams v Central Bank of Nigeria [2014] AC 1189, Gwembe Valley Development Co Ltd v Koshy [2004] 1 BCLC 131, First Subsea Ltd (formerly BSW. Ltd) v Balltec Ltd [2018] Ch 25, Novoship Finance plc v Mikhaylyuk [2015] QB 499 and Group Seven Ltd and another v Nasir and others [2020] Ch 129. The talk will end with a brief consideration of the decision of the UK Supreme Court in Byers v Saudi National Bank [2024] AC 1191.
(The present presentation will not address common intention constructive trust.)
