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Rukhadze and others (Appellants) v Recovery Partners GP Ltd and another (Respondents)
Case summary
Case ID
UKSC/2023/0062
Parties
Appellant(s)
Irakli Rukhadze
Igor Alexeev
Benjamin Marson
Hunnewell Partners (UK) LLP
Hunnewell Partners (bvi) Limited
Park Street (GP) Limited
Park Street (BR) Limited
Park Street (GS) Limited
Park Street (L) Limited
Respondent(s)
Recovery Partners GP Ltd
Revoker LLP
Issue
Whether the current test for an account of profits (where a fiduciary has to pay back money earned due to a breach of a duty) should be changed to introduce a requirement that the fiduciary could not have made the same profit in a way that avoided a breach of duty, i.e. to introduce a test that asks: ‘Could the same profit have been made but for the breach of fiduciary duty’?
Facts
The claimants (and respondents to the appeal) are a company incorporated in the British Virgin Islands, to which the claims of another such company have also been assigned, and an English LLP. The individual defendants (and appellants) worked for the claimants. These defendants held positions of responsibility such that they owed special duties (fiduciary duties) to the claimants. In breach of those duties, these defendants diverted a business opportunity away from the claimants and exploited it for themselves. As a consequence, the defendants were ordered to pay to the claimants the profits made from this business opportunity. In their appeal, the defendants dispute the need to repay those profits, and how those profits should be calculated.
Date of issue
21 May 2023
Judgment appealed
Judgment details
Judgment date
19 March 2025
Neutral citation
[2025] UKSC 10
Judgment links
Judgment summary
19 March 2025
Appeal
Justices
Hearing dates
Full hearing
Start date
23 July 2024
End date
24 July 2024
Watch hearings
23 July 2024 - Morning session
23 July 2024 - Afternoon session
24 July 2024 - Morning session
24 July 2024 - Afternoon session
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Change log
Last updated 15 August 2024