UVH v UVJ: Account of Profits & Pre-Judgment Interest in Fiduciary Duty Breach

In Suit No 6 of 2016, the Family Justice Courts of Singapore heard a case between sisters UVH and UVI (the Sisters) and their brothers UVJ, UVK, UVL, UVO, UVP, and UVQ (the Brothers), who were the executors of their late father's estate. The Sisters sought an account against the Brothers for breaches of their fiduciary duties. The court ordered pre-judgment interest on the judgment sum, to commence from the date of the writ at 5.33% per annum. The Brothers have appealed against the decision by way of Civil Appeal No 127 of 2019. The Sisters have appealed against the commencement date of the pre-judgment interest by way of Civil Appeal No 172 of 2019.

1. Case Overview

1.1 Court

Family Justice Courts of the Republic of Singapore

1.2 Outcome

Pre-judgment interest on the judgment sum was ordered to commence from the date of the writ at 5.33% per annum.

1.3 Case Type

Family

1.4 Judgment Type

Supplemental Grounds of Decision

1.5 Jurisdiction

Singapore

1.6 Description

Sisters sought an account against their brothers for breaches of fiduciary duties as executors. The court addressed pre-judgment interest on the judgment sum.

1.7 Decision Date

2. Parties and Outcomes

Party NameRoleTypeOutcomeOutcome TypeCounsels
UVHPlaintiffIndividualPre-judgment interest orderedPartialPhilip Antony Jeyaretnam, Chua Weilin
UVIPlaintiffIndividualPre-judgment interest orderedPartialPhilip Antony Jeyaretnam, Chua Weilin
UVJDefendantIndividualPre-judgment interest ordered againstLostN Sreenivasan, Lim Shu Fen
UVKDefendantIndividualPre-judgment interest ordered againstLostN Sreenivasan, Lim Shu Fen
UVLDefendantIndividualPre-judgment interest ordered againstLostN Sreenivasan, Lim Shu Fen
UVODefendantIndividualPre-judgment interest ordered againstLostDeborah Evaline Barker
UVPDefendantIndividualPre-judgment interest ordered againstLostDeborah Evaline Barker
UVQDefendantIndividualPre-judgment interest ordered againstLostDeborah Evaline Barker

3. Judges

Judge NameTitleDelivered Judgment
Valerie TheanJudgeYes

4. Counsels

Counsel NameOrganization
Philip Antony JeyaretnamDentons Rodyk & Davidson LLP
Chua WeilinDentons Rodyk & Davidson LLP
N SreenivasanK&L Gates Straits Law LLC
Lim Shu FenK&L Gates Straits Law LLC
Deborah Evaline BarkerWithers KhattarWong LLP

4. Facts

  1. The Sisters sought an account against their brothers, the executors of their late father’s estate.
  2. The Testator passed away on 30 May 1997 and appointed the Brothers as executors.
  3. Grant of probate was issued on 4 September 2000.
  4. The Estate had a real estate portfolio held through four private companies.
  5. The suit was commenced by the Sisters on 25 July 2016.
  6. The Brothers failed to furnish any account for some 19 years.
  7. The Brothers failed to distribute or deal with the shares in the Companies.

5. Formal Citations

  1. UVH and another v UVJ and others, Suit No 6 of 2016 (Taking of Accounts or Inquiries No 1 of 2017), [2019] SGHCF 22

6. Timeline

DateEvent
Testator passed away
Grant of probate issued
Suit commenced by the Sisters
Court granted order for account to be taken of the Estate
Court ordered remedies in the taking of accounts
Counsel agreed to write in with submissions
Court held that pre-judgment interest should commence from the date of the writ
Reasons given for decision

7. Legal Issues

  1. Pre-judgment Interest
    • Outcome: The court held that pre-judgment interest can accrue on the Judgment Sum, and specifically, on an account of profits.
    • Category: Substantive
    • Related Cases:
      • [2016] 3 SLR 1308
      • [2008] 2 SLR(R) 623
  2. Breach of Fiduciary Duty
    • Outcome: The court found breaches of fiduciary duty in the Brothers' failure to furnish accounts and distribute shares.
    • Category: Substantive
    • Related Cases:
      • [2015] 1 SLR 1097
      • [2014] 3 WLR 535
  3. Account of Profits
    • Outcome: The court ordered an account of profits for the directors’ remuneration received by the Brothers.
    • Category: Substantive

8. Remedies Sought

  1. Account of Profits
  2. Pre-judgment Interest

9. Cause of Actions

  • Breach of Fiduciary Duty
  • Taking of Accounts

10. Practice Areas

  • Commercial Litigation
  • Trust Litigation
  • Family Law

11. Industries

  • No industries specified

12. Cited Cases

Case NameCourtAffirmedCitationJurisdictionSignificance
UVH and another v UVJ and othersHigh Court (Family Division)Yes[2019] SGHCF 14SingaporeDetails the decision in the taking of accounts, which the current judgment supplements.
Grains and Industrial Products Trading Pte Ltd v Bank of India and anotherCourt of AppealYes[2016] 3 SLR 1308SingaporeCited for the general principles relating to pre-judgment interest.
Robertson Quay Investment Pte Ltd v Steen Consultants Pte LtdCourt of AppealYes[2008] 2 SLR(R) 623SingaporeCited regarding unreasonable delay in commencing an action and its effect on pre-judgment interest.
Guy Neale and others v Nine Squares Pty LtdCourt of AppealYes[2015] 1 SLR 1097SingaporeCited for the principle that any benefit acquired by an agent in breach of fiduciary duty is held on trust for the principal.
FHR European Ventures LLP v Cedar Capital Partners LLCUK Supreme CourtYes[2014] 3 WLR 535United KingdomCited for the principle that any benefit acquired by an agent in breach of fiduciary duty is held on trust for the principal.
Attorney-General for Hong Kong v Charles Warwick Reid and othersN/AYes[1993] 3 WLR 1143Hong KongCited for the principle that a false fiduciary holds a bribe on constructive trust for the injured party.
Thahir Kartika Ratna v PT Pertambangan Minyak dan Gas Bumi Negara (Pertamina)Court of AppealYes[1994] 3 SLR(R) 312SingaporeCited for approving the principle in Attorney-General for Hong Kong v Charles Warwick Reid and others.
Regal (Hastings) Ltd v Gulliver and othersN/AYes[1967] 2 AC 134N/ACited as an example where pre-judgment interest accrued on profits made by errant directors in breach of fiduciary duties.
In re Lehman Bros (in administration) (No 8) Lomas and others v Revenue and Customs CommissionersUK Supreme CourtYes[2019] 1 WLR 2173United KingdomCited Regal (Hastings) as an example where pre-judgment interest accrued on an account of profits.
Ong Teck Soon (executor of the estate of Ong Kim Nang, deceased) v Ong Teck Seng and anotherN/AYes[2017] 4 SLR 819SingaporeDistinguished regarding the rate of pre-judgment interest applicable.
Lakshmi Prataprai Bhojwani (alias Mrs Lakshmi Jethanand Bhojwani) v Moti Harkishindas BhojwaniN/AYes[2019] 3 SLR 356SingaporeCited for the principle that executors have a duty to act in the best interests of the beneficiaries.
Malaysian International Trading Corp Sdn Bhd v Interamerica Asia Pte Ltd and othersN/AYes[2002] 2 SLR(R) 896SingaporeCited for the principle that equity will deem fiduciaries to do what should be done.
Libertarian Investments Ltd v Thomas Alexej HallN/AYes[2013] HKCFA 93Hong KongCited for the principle that the court was entitled to make every assumption against them.
Lalwani Ashok Bherumal v Lalwani Shalini Gobind and anotherN/AYes[2019] SGHC 1SingaporeCited for the principle that a fiduciary is precluded from setting up a case inconsistent with the obligations of his fiduciary position.

13. Applicable Rules

Rule Name
No applicable rules

14. Applicable Statutes

Statute NameJurisdiction
Civil Law Act (Cap 43, 1999 Rev Ed)Singapore

15. Key Terms and Keywords

15.1 Key Terms

  • Pre-judgment Interest
  • Fiduciary Duty
  • Account of Profits
  • Executors
  • Estate
  • Wilful Default
  • Directors' Remuneration
  • Benefits-in-kind
  • Constructive Trust

15.2 Keywords

  • Pre-judgment interest
  • fiduciary duty
  • account of profits
  • trustees
  • estate
  • directors remuneration

16. Subjects

  • Trusts
  • Equity
  • Family Law
  • Civil Procedure
  • Fiduciary Duty

17. Areas of Law

  • Equity
  • Fiduciary Relationships
  • Trust Law
  • Civil Procedure