Watson v Kea Investments Limited [2019] EWCA Civ 1759

WTLR Issue: Spring 2020

ERIC JOHN WATSON

V

KEA INVESTMENTS LIMITED

Analysis

In 2012, the claimant trustee (K) invested £129m into a joint venture (Spartan), which was alleged have been procured by the deceit of Mr Watson. The action between K and Spartan was settled, with certain agreements between Spartan and K set aside. As a result, K was entitled to treat Spartan as constructive trustee of £129m, which also gave rise to a right to interest under the equitable jurisdiction of the Court, or s35A Senior Courts Act 1981. K continued its claim against Mr Watson, who was found liable to pay equitable compensation to K of all sums which were due from Spartan, but which Spartan proved unable to pay.

Counsel details

Joseph Dalby (SC, Republic of Ireland) (The 36 Group, 4 Field Court, Gray’s Inn, London WC1R 5EF, tel 0207 421 8000) and Simon Harding (The 36 Group, 4 Field Court, Gray’s Inn, London WC1R 5EF, tel 0207 421 8000) instructed by Direct Access for the appellant.

Elizabeth Jones QC (Serle Court, 6 New Square, Lincoln’s Inn, London WC2A 3QS, tel 0207 242 6105, email clerks@serlecourt.co.uk) and Paul Adams (Serle Court, 6 New Square, Lincoln’s Inn, London WC2A 3QS, tel 0207 242 6105, email clerks@serlecourt.co.uk) instructed by Farrer & Co LLP (66 Lincoln’s Inn Fields, London WC2A 3LH, tel 0203 375 7000, email enquiries@farrer.co.uk) for the respondent.

Cases referenced

Cases in bold have further reading - click to view.

  • A-G v Alford (1855) 4 De GM & G 843
  • A-G v Alford (1855) 4 De GM & G 843|Bartlett v Barclays Bank Trust Co Ltd [1980] Ch 515|Re Beech [1920] 1 Ch 40|Carrasco v Johnson [2018] EWCA Civ 87|Central Bank of Nigeria v Williams [2012] WTLR 745
  • Bartlett v Barclays Bank Trust Co Ltd [1980] Ch 515
  • Carrasco v Johnson [2018] EWCA Civ 87
  • Central Bank of Nigeria v Williams [2012] WTLR 745, [2014] UKSC 10
  • Challinor v Juliet Bellis & Co [2013] EWHC 620 (Ch)
  • Docker v Somes (1834) 2 My & K 656
  • El-Ajou v Dollar Land Holdings PLC [1995] 2 All ER 213
  • Fiona Trust v Privalov [2011] EWHC 664 (Comm)
  • Gillick v West Norfolk AHA [1986] AC 112 at 183 B-D
  • Henderson v Foxworth [2014] 1 WLR 2600
  • Novoship (UK) Ltd v Mikhailyuk [2015] QB 499
  • Re Beech [1920] 1 Ch 40
  • Re Duckwari PLC [1999] Ch 268
  • Re Emmet's Estate (1881) 17 Ch. D. 142
  • Re Lambert [1897] 2 Ch
  • Re Rees (1881) 17 Ch. D. 701
  • Selangor United Rubber Estates Ltd v Cradock (No 3) [1968] 2 All ER 1073
  • Thakerar v Paragon Finance [1999] 1 All ER 400
  • Wallersteiner v Moir (No.2) [1975] QB 373

Legislation referenced

Legislation in bold has further reading - click to view.

  • Companies Act 1985, s320
  • Companies Act: 1985
  • s320|Senior Courts Act 1981
  • s35A
  • Senior Courts Act 1981, s35A