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ARTICLE · 05 OCTOBER 2016

Dishonest Or Fraudulent Breaches Of Duty Know No Limits

Limitation is a perennial concern for plaintiffs, and knowing when time starts to run is particularly troublesome where plaintiffs have been unaware of their potential claim...

JerseyWealth Management

Limitation is a perennial concern for plaintiffs, and knowing when time starts to run is particularly troublesome where plaintiffs have been unaware of their potential claim due to either a lack of information or worse, dishonesty.  In CMC Holdings Limited v Martin Henry Forster & Ors1 the Jersey Court indicated albeit at a preliminary stage of the proceedings, that neither a trustee of an express trust nor a fiduciary who has acted dishonestly in breach of trust or fiduciary duty can successfully plead a limitation defence.

The Claim

The Plaintiffs were Kenyan companies that imported motor vehicles into East Africa (the Companies).  They alleged that at some time between 1977 and 2011 certain former directors of the Companies participated in unlawful arrangements to receive secret commissions in respect of that importation.  The First Defendant was one of the former directors whom it was alleged acted dishonestly in breach of his fiduciary duties and should

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