UVH v UVJ: Fiduciary Duty Breach by Executors & Account of Profits
In UVH and another v UVJ and others, the Family Division of the High Court of Singapore heard a suit by two sisters, UVH and UVI, against their three brothers, UVJ, UVK, and UVL, alleging breach of fiduciary duties as executors of their father's estate. The court found the brothers had failed in their duties, ordering an account of profits, surcharges for benefits received, falsification of a debt, and removal of the brothers as executors. UVO, UVP and UVQ were joined in their capacities as executors of the Mother's estate.
1. Case Overview
1.1 Court
High Court (Family Division)1.2 Outcome
Judgment for Plaintiffs
1.3 Case Type
Family
1.4 Judgment Type
Judgment
1.5 Jurisdiction
Singapore
1.6 Description
Sisters sued brothers for breach of fiduciary duties as executors. Court ordered account of profits, surcharges, and removal of brothers as executors.
1.7 Decision Date
2. Parties and Outcomes
| Party Name | Role | Type | Outcome | Outcome Type | Counsels |
|---|---|---|---|---|---|
| UVH | Plaintiff | Individual | Judgment for Plaintiff | Won | Philip Jeyaretnam, Reuben Gavin Peter |
| UVI | Plaintiff | Individual | Judgment for Plaintiff | Won | Philip Jeyaretnam, Reuben Gavin Peter |
| UVJ | Defendant | Individual | Removal as Executor Ordered | Lost | N Sreenivasan, Lim Shu Fen |
| UVK | Defendant | Individual | Removal as Executor Ordered | Lost | N Sreenivasan, Lim Shu Fen |
| UVL | Defendant | Individual | Removal as Executor Ordered | Lost | N Sreenivasan, Lim Shu Fen |
| UVO | Defendant | Individual | Neutral | Neutral | G Raman |
| UVP | Defendant | Individual | Neutral | Neutral | G Raman |
| UVQ | Defendant | Individual | Neutral | Neutral | G Raman |
3. Judges
| Judge Name | Title | Delivered Judgment |
|---|---|---|
| Valerie Thean | Judge | Yes |
4. Counsels
| Counsel Name | Organization |
|---|---|
| Philip Jeyaretnam | Dentons Rodyk & Davidson LLP |
| Reuben Gavin Peter | Dentons Rodyk & Davidson LLP |
| N Sreenivasan | K&L Gates Straits Law Practice LLC |
| Lim Shu Fen | K&L Gates Straits Law Practice LLC |
| G Raman | Withers KhattarWong LLP |
4. Facts
- The Testator passed away on 30 May 1997, leaving a will that divided his estate among his wife and children.
- The Brothers were appointed as executors and trustees of the Testator's will.
- The Estate included shares in four private companies holding substantial real property investments.
- The Brothers used the Estate's shares to vote in favor of resolutions re-appointing themselves as directors and approving their remuneration.
- The Sisters were not consulted on these decisions and were not informed of the proceeds received from divestment of real estate.
- The Brothers rented out properties owned by the Companies to themselves at below-market value.
- The Brothers failed to provide a satisfactory account of the Estate to the Sisters, leading to legal action.
5. Formal Citations
- UVH and another v UVJ and others, HCF Suit No 6 of 2016(TAI No 1 of 2017), [2019] SGHCF 14
6. Timeline
| Date | Event |
|---|---|
| Testator's will executed | |
| Testator passed away | |
| Probate granted to the Brothers | |
| Half-Siblings requested information on estate administration | |
| Half-Siblings filed Originating Summons No 1241 of 2002 | |
| Originating Summons No 1241 of 2002 resolved | |
| Half-Siblings paid their entitlement of $500,000 each | |
| Eastern Mansion property sold for $909,207.90 | |
| UVJ started staying at [E] Shelford Road | |
| JB Land sold for $879,800 | |
| Mother passed away | |
| Sisters sought statement of Estate's account | |
| Brothers rendered statement of account | |
| Sisters commenced High Court (Family Division) Suit No 6 of 2016 | |
| Court ordered account to be taken of the Estate on a wilful default basis | |
| Judgment reserved |
7. Legal Issues
- Breach of Fiduciary Duty
- Outcome: The court found that the Brothers had breached their fiduciary duties as executors of the Estate.
- Category: Substantive
- Sub-Issues:
- Conflict of interest
- Failure to disclose
- Failure to distribute assets
- Improper administration of estate
- Account of Profits
- Outcome: The court ordered an account of profits for the remuneration received by the Brothers as directors of the Companies.
- Category: Remedial
- Sub-Issues:
- Unauthorised profits
- Directors' remuneration
- Benefits in kind
- Removal of Executors
- Outcome: The court ordered the removal of the Brothers as executors of the Estate.
- Category: Remedial
- Sub-Issues:
- Improper administration
- Conflict of interest
- Disregard of beneficiaries' interests
8. Remedies Sought
- Account of Profits
- Equitable Compensation
- Surcharge on Estate's Account
- Falsification of Account
- Removal of Executors
9. Cause of Actions
- Breach of Fiduciary Duty
- Failure to Account
10. Practice Areas
- Trusts and Estates Litigation
- Breach of Fiduciary Duty
- Account of Profits
11. Industries
- Real Estate
- Investment
12. Cited Cases
| Case Name | Court | Affirmed | Citation | Jurisdiction | Significance |
|---|---|---|---|---|---|
| Lalwani Shalini Gobind and another v Lalwani Ashok Bherumal | High Court | Yes | [2017] SGHC 90 | Singapore | Cited to support the point that the taking of an account functions as a process, not as a remedy. |
| Chng Weng Wah v Goh Bak Heng | Court of Appeal | Yes | [2016] 2 SLR 464 | Singapore | Summarized the process of taking accounts as a three-step process, with “any consequential relief” listed as the last step. |
| Libertarian Investments Ltd v Thomas Alexej Hall | Hong Kong Court of Final Appeal | Yes | [2013] HKCFA 93 | Hong Kong | Explained that an order for an account does not in itself provide the plaintiff with a remedy; it is merely the first step in a process. |
| Tongbao (Singapore) Shipping Pte Ltd and another v Woon Swee Huat and others | High Court | Yes | [2018] SGHC 165 | Singapore | Cited to support the point that it is only upon the taking of an account that the true position between the fiduciary and the beneficiary may be ascertained. |
| Cheong Soh Chin and others v Eng Chiet Shoong and others | High Court | Yes | [2018] SGHC 131 | Singapore | Explained that in cases of wilful default accounting, the trustee is subject to a “roving commission”, where the judge is entitled to look into all aspects of the trustee’s management. |
| Bartlett v Barclays Bank Trust Co (No 2) | Chancery Division | Yes | [1980] 1 Ch 515 | England and Wales | Cited in Cheong Soh Chin to explain that in cases of wilful default accounting, the trustee is subject to a “roving commission”. |
| Murad v Al-Saraj | England and Wales Court of Appeal (Civil Division) | Yes | [2005] EWCA Civ 959 | England and Wales | Explained that the onus is on the defaulting fiduciary to show that the profit is not one for which he should account. |
| Manley v Sartori | Chancery Division | Yes | [1927] Ch 157 | England and Wales | Cited in Murad v Al-Saraj to support the point that the onus is on the defaulting fiduciary to show that the profit is not one for which he should account. |
| Sandz Solutions (Singapore) Pte ltd and others v Strategic Worldwide Assets Ltd and others | Court of Appeal | Yes | [2014] 3 SLR 562 | Singapore | Emphasized that the trial judge has to consider the totality of the evidence in determining the veracity, reliability and credibility of a particular witness’s evidence. |
| In re Gee, decd. | Chancery Division | Yes | [1948] Ch 284 | England and Wales | Distinguished; the court found that there was no conflict of interest in In re Gee. |
| Lo Khi On (t/a Fuji Hairdressing Saloon) v Tanjong Aru Hotel Sdn Bhd | High Court | Yes | [1994] 3 MLJ 766 | Malaysia | Cited to support the point that the court has a discretion to order the defendant to begin first. |
| Surender Singh s/o Jagdish Singh and another (administrators of the estate of Narindar Kaur d/o Sarwan Singh, deceased) v Li Man Kay and others | High Court | Yes | [2010] 1 SLR 428 | Singapore | Cited to support the point that Section 108 of the Evidence Act imposes on a person the burden of proving a fact where that fact was particularly within the knowledge of that person. |
| Townsing Henry George v Jenton Overseas Investment Pte Ltd (in liquidation) | High Court | Yes | [2007] 2 SLR(R) 597 | Singapore | Cited to define the principle of reflective loss. |
| Then Khek Khoon and another v Arjun Permanand Samtani and another and other suits | High Court | Yes | [2014] 1 SLR 245 | Singapore | Cited to define equitable compensation. |
| ADP v ADT | High Court | Yes | [2014] 3 SLR 904 | Singapore | Cited to support the point that the standard that executors should be held to is that of good faith and reasonableness. |
| Jigarlal Kantilal Doshi v Damayanti Kantilal Doshi (executrix of the estate of Kantilal Prabhulal Doshi, deceased) | Court of Appeal | Yes | [2000] 3 SLR(R) 290 | Singapore | Cited to support the point that any evidence of misconduct on the part of the executors that demonstrates “undue and improper administration of the estate in total disregard of the interests of the beneficiaries” would be sufficient to revoke probate. |
| Wong Moy (administratrix of the estate of Theng Chee Khim, deceased) v Soo Ah Choy | High Court | Yes | [1996] 3 SLR(R) 27 | Singapore | Cited to support the point that as the Estate is not yet fully administered, the beneficiaries have no equitable or beneficial interest in any particular asset comprised in the unadministered estate. |
| Fong Wai Lyn Carolyn v Kao Chai-Chau Linda and others | High Court | Yes | [2017] 4 SLR 1018 | Singapore | Cited to support the point that the beneficiaries have the right in appropriate circumstances to institute action to protect the estate. |
13. Applicable Rules
| Rule Name |
|---|
| No applicable rules |
14. Applicable Statutes
| Statute Name | Jurisdiction |
|---|---|
| Evidence Act (Cap 97, 1997 Rev Ed) | Singapore |
| Rules of Court (Cap 322, R 5, 2014 Rev Ed) | Singapore |
| Trustees Act (Cap 337, 2005 Rev Ed) | Singapore |
| Probate and Administration Act (Cap 251, 2000 Rev Ed) | Singapore |
| Companies Act (Cap 50, 2006 Rev Ed) | Singapore |
15. Key Terms and Keywords
15.1 Key Terms
- Executors
- Fiduciary Duty
- Account of Profits
- Wilful Default
- Directors' Remuneration
- Benefits in Kind
- Estate
- Beneficiaries
- Companies
- Shares
- Dividends
- Real Property Investments
15.2 Keywords
- fiduciary duty
- executors
- account of profits
- estate
- trust
- family
- Singapore
16. Subjects
- Trusts
- Estates
- Fiduciary Duty
- Accounting
- Family Law
17. Areas of Law
- Equity
- Fiduciary Relationships
- Trust Law
- Probate and Administration