Knowledge Is Key: Accessory Liability For A Strict Liability Offence Clarified

The UK Supreme Court earlier this year clarified that liability as an accessory for a strict liability tort does not automatically follow, and instead proof of knowledge of, or the turning of a blind eye to, the essential facts which make the act wrongful is required. The court also addressed the purpose and extent of an account of profits as an equitable remedy.

Though UKSC judgments are not binding on Cayman Courts they are highly persuasive, and this decision, now being the leading case on the attribution of accessory liability to directors for company wrongs, carries significant implications for Cayman-based directors and other company employees who could be subject to accessory liability. This article considers the ruling of the UKSC and then looks at the key takeaways from a Cayman perspective, particularly for Cayman office holders.