Equitable compensation not confined to recovery for reparation of loss (Court of Appeal)

  • The Court of Appeal (David Richards and Newey LJJ) has held that the phrase ‘equitable compensation’ should include payments made to restore to the claimant the value of assets or funds removed without authority where the claimant is also entitled to compensation for actual loss.
  • In Interactive Technology Corporation Ltd v Ferster [2018], the claimant successfully claimed that through the defendant dishonestly causing the claimant to pay a substantial, unauthorised remuneration to the defendant in excess of his salary, he had breached his fiduciary duty.
  • After the judge held that the phrase ‘equitable compensation’ meant compensation for losses resulting from payment of the unauthorised remuneration, the claimant appealed.
  • The court then agreed with the claimant that ‘equitable compensation’ should include the recovery of compensation for money or assets disbursed without authority.
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Geoff specialises in commercial and IT litigation. Admitted as a solicitor in 1987, Geoff has worked as a partner in both leading UK and US law firms.