Fairfield Sentry Case: Irish Implications

A recent appeal heard by the Eastern Caribbean Court in respect of the on-going Fairfield BVI litigation is of interest to fund investors in respect of whether or not redemption proceeds lead to unjust enrichment, in circumstances where it subsequently becomes clear that the actual fund value was zero.  The principles applied are long-standing ones and bear significant similarities to the Irish position.  Fairfield had invested funds with Bernard L Madoff Investments Securities ("BMIS") on behalf of investors, some of which had redeemed prior to the liquidation of both BMIS and Fairfield.  The redemption value was calculated by reference to the company's Net Asset Value ("NAV") pursuant to Fairfield's articles of association.