Who Owns A Bribe?

Secret commissions and bribes have unfortunately become an increasingly common feature of doing business in certain parts of the world. The Jersey and UK courts have now provided the answer to the vexing question of who owns a bribe. Once established, ownership gives rise to an ability to trace the proceeds of a bribe or secret commission into the hands of a third party. That calls for an understanding of the different approaches to tracing, particularly when Jersey's differs from that adopted in the UK.

1. On 16 July 2014, the UK Supreme Court handed down its judgment in FHR European Ventures LLP v Cedar Capital Partners LLC ("FHR").¹ This decision settles a long-running argument as to whether a principal has a proprietary or a merely personal claim against an agent who takes a bribe or secret commission.