FHR European Ventures Llp and Others v Mankarious and Others: ChD 5 Sep 2011

The claimants sought return of what it said were secret commissions earned by the defendants when working as their agents, and the defendants counterclaimed saying that the commissions had been known to the claimants and that additional sums were due. The claimants had employed the defendants as their agents in the acquisition of an interest in a very substantial hotel. The defendants had also taken a commission of 10m euros from the sellers.
Held: The court found the second defendant, while acting with the first and third defendants for the claimants in the purchase of a hotel, not to have made proper disclosure that it was to receive a substantial commission from the vendor. The court made a declaration of liability for breach of fiduciary duty by the second defendant for its failure to obtain the claimants’ consent in respect of the fee, and had ordered it to pay that sum to the claimants. The court declined to grant the claimants a proprietary remedy in respect of that sum sum.
Simon J
[2011] EWHC 2308 (Ch), [2012] 2 BCLC 39
Bailii
England and Wales
Citing:
CitedHindmarsh and Another v Brigham and Cowan Ltd 1943
An agent may not put himself in a position or enter into a transaction in which his personal interest, or his duty to another principal may conflict with his duty to his principal, unless his principal, with full knowledge of all the material . .
See AlsoAboualsaud v Aboukhater and Another QBD 19-Sep-2007
Claim for commission – introduction of purchaser – denial of verbal contract. . .
CitedRhodes v Macalister CA 1923
The plaintiff agent acted to find a seller of mineral rights for the defendant principal. He told his principal that the properties could be purchased for from andpound;8,000 to andpound;10,000. If the agent could find a seller at below . .

Cited by:
See AlsoFHR European Ventures Llp and Others v Mankarious and Others ChD 15-Nov-2011
A costs order was to be made. The court now considered whether it should be against one defendant alone, or against all defendants jointly and severally.
Held: The court should (i) make a declaration of liability for breach of fiduciary duty . .
Appeal fromFHR European Ventures Llp and Others v Mankarious and Others CA 29-Jan-2013
The defendants had taken a secret commission when acting for the claimant. They had succeeded in their action and had an order in their favour, but had been refused a proprietary remedy for the sum received.
Held: The appeal was allowed, and a . .
At ChDFHR European Ventures Llp and Others v Cedar Capital Partners Llc SC 16-Jul-2014
Approprietary remedy against Fraudulent Agent
The Court was asked whether a bribe or secret commission received by an agent is held by the agent on trust for his principal, or whether the principal merely has a claim for equitable compensation in a sum equal to the value of the bribe or . .

These lists may be incomplete.
Updated: 15 March 2021; Ref: scu.444300