Facts
- The defendant solicitors advised FHR on the purchase of shares in the Monte Carlo Grand Hotel worth EUR 211.5 million, in return for remuneration
- As a result of the transaction, the solicitors also obtained a EUR 10 million payment, in breach of fiduciary duty as the consent of FHR had not been obtained
Issue
- Was the EUR 10 million a personal or proprietary remedy available to the principal?
Decision
- Proprietary
Reasoning
- Bribes should become the property of the principal as they are effectively a loss to that principal
- Bribes undermine the commercial world
- Bribes do not prejudice other creditors as they shouldn’t have existed in the first place
- The rule that all breaches of fiduciary duties should give rise to proprietary remedies has the added benefit of simplicity
