KB-2025-001160 - [2025] EWHC 2369 (KB)

Mr Oudkerk argued that there is no proper basis for asserting a constructive trust. He relied, inter alia, on FHR European Ventures LLP v Cedar Capital Partners LLC [2015] AC 250 and submitted that a constructive trust typically arises in the most serious forms of equitable wrongdoing: against the knowing recipient of trust property, or where an individual has dishonestly assisted in a breach of trust. It has to be “unconscionable” for the owner of the property to assert his own beneficial interest and deny the beneficial interest of another. There is also a causal requirement and the court does not simply impose a constructive trust as an ex post facto form of relief: see Westdeutsche Landesbank Girozentrale v Islington London Borough Council [1996] AC 669, 714-716.

It seems to me that this is an issue which Mr Wheeler should raise in his pleaded Defence, if he wishes. The point can then be determined on the evidence, including the evidence as to what the arrangements were between him, Corinthia and the other organisers of the team move, and what benefits he derived from any breaches of fiduciary duty on his part. I do not accept that I can and should dispose of this claim summarily or that it is abusive.