Lavrentiadis v Dextra Partners: Breach of Trust, Fiduciary Duty, and Accessory Liability
In Lavrentiadis v Dextra Partners Pte Ltd, the Singapore High Court addressed claims of breach of trust and fiduciary duty against Dextra Partners, a foreign law practice, and its manager, Bernhard Weber. The plaintiff, Lavrentios Lavrentiadis, alleged unauthorized transactions and mismanagement of his funds held by Dextra. The court found that Dextra and Weber breached their duties, including unauthorized investments and conflicts of interest. The court ruled in favor of the plaintiff, ordering Dextra and Weber to account for and repay the misappropriated funds.
1. Case Overview
1.1 Court
High Court of the Republic of Singapore1.2 Outcome
Judgment for Plaintiff
1.3 Case Type
Civil
1.4 Judgment Type
Judgment
1.5 Jurisdiction
Singapore
1.6 Description
Singapore High Court case involving breach of trust and fiduciary duty claims against Dextra Partners and its manager, Weber, regarding unauthorized transactions.
1.7 Decision Date
2. Parties and Outcomes
| Party Name | Role | Type | Outcome | Outcome Type | Counsels |
|---|---|---|---|---|---|
| Lavrentios Lavrentiadis | Plaintiff | Individual | Judgment for Plaintiff | Won | Sim Bock Eng, Tan Kia Hua, Lee Yu Lun Darrell, Celeste Tan Yin |
| Dextra Partners Pte Ltd | Defendant | Corporation | Judgment against Defendant | Lost | Philip Fong Yeng Fatt, Kevin Koh Zhi Rong, Koh Xian Wei Jeffrey |
| Bernhard Wilhelm Rudolf Weber | Defendant | Individual | Judgment against Defendant | Lost | Philip Fong Yeng Fatt, Kevin Koh Zhi Rong, Koh Xian Wei Jeffrey |
3. Judges
| Judge Name | Title | Delivered Judgment |
|---|---|---|
| Chua Lee Ming | Judge | Yes |
4. Counsels
| Counsel Name | Organization |
|---|---|
| Sim Bock Eng | WongPartnership LLP |
| Tan Kia Hua | WongPartnership LLP |
| Lee Yu Lun Darrell | WongPartnership LLP |
| Celeste Tan Yin | WongPartnership LLP |
| Philip Fong Yeng Fatt | Eversheds Harry Elias LLP |
| Kevin Koh Zhi Rong | Eversheds Harry Elias LLP |
| Koh Xian Wei Jeffrey | Eversheds Harry Elias LLP |
4. Facts
- Plaintiff entrusted funds to Dextra Partners, managed by Weber.
- Dextra Partners held plaintiff's monies in its clients' account.
- Disputes arose over authorized transactions and Weber's personal liability.
- Dextra claimed certain transactions were authorized under a General Advisory Mandate.
- Plaintiff denied signing the mandate and disputed the authorization of transactions.
- Dextra made loans to Far West, where Weber was a director and shareholder.
- Dextra used plaintiff's funds for loans to entities where Weber had personal interests.
5. Formal Citations
- Lavrentiadis, Lavrentios v Dextra Partners Pte Ltd and another, Suit No 106 of 2018, [2020] SGHC 146
6. Timeline
| Date | Event |
|---|---|
| Weber set up ILC Singapore | |
| Plaintiff wanted to set up a trust in Singapore and he was referred to Weber | |
| The Calmness Trust was set up pursuant to a Deed of Settlement | |
| ILC Singapore retired as trustee and appointed WinTrust as the trustee of the Calmness Trust | |
| ILC Singapore and WinTrust entered into a Deed of Variation to the 2005 Deed of Settlement | |
| Proton Bank in Greece was nationalised | |
| Funds were transferred to ILC Singapore's clients' account | |
| Funds were transferred to ILC Singapore's clients' account | |
| Weber met the plaintiff in Athens | |
| Ritter and Weber met the plaintiff in Athens | |
| The plaintiff was arrested and remanded in custody | |
| Defendants claim Investment Swap took place | |
| Ressos met the plaintiff's Greek lawyer in Munich | |
| The plaintiff was released from remand | |
| Athanasiou requested an update on the funds held by Dextra | |
| Weber sent a statement of the plaintiff's EUR account to the plaintiff | |
| The plaintiff and Athanasiou met Ressos in Athens | |
| Athanasiou met Weber in Singapore | |
| Athanasiou provided the proof of his authority to act for the plaintiff | |
| Weber sent Athanasiou a third statement of the plaintiff’s EUR account with Dextra | |
| The plaintiff commenced this action |
7. Legal Issues
- Breach of Trust
- Outcome: The court found that Dextra Partners breached its duties as a trustee by engaging in unauthorized transactions and mismanaging the plaintiff's funds.
- Category: Substantive
- Sub-Issues:
- Unauthorized Investments
- Misapplication of Funds
- Breach of Fiduciary Duty
- Outcome: The court found that Weber, as the manager of Dextra Partners, owed and breached his fiduciary duties to the plaintiff.
- Category: Substantive
- Sub-Issues:
- Conflict of Interest
- Failure to Act in Best Interest
- Accessory Liability
- Outcome: The court found Weber liable for dishonestly assisting Dextra in its breaches of trust.
- Category: Substantive
- Sub-Issues:
- Dishonest Assistance
8. Remedies Sought
- Account of Monies
- Damages
9. Cause of Actions
- Breach of Trust
- Breach of Fiduciary Duty
- Dishonest Assistance
10. Practice Areas
- Commercial Litigation
- Trust Litigation
11. Industries
- Legal Services
- Financial Services
12. Cited Cases
| Case Name | Court | Affirmed | Citation | Jurisdiction | Significance |
|---|---|---|---|---|---|
| Foo Jee Seng and others v Foo Jhee Tuang and another | Court of Appeal | Yes | [2012] 4 SLR 339 | Singapore | Cited for the principle that trustees are under a duty to keep account of the trusts and to allow the beneficiaries to inspect them as requested. |
| Pearse v Green | N/A | Yes | (1819) 1 Jac & W 135; 37 ER 327 | N/A | Cited to support the principle that a trustee has to be constantly ready with his accounts. |
| Cheong Soh Chin and others v Eng Chiet Shoong and others | N/A | Yes | [2019] 4 SLR 714 | Singapore | Cited for the key differences between an account on a wilful default basis and an account on a common account basis pertain to the scope of the account and the trustee’s liability. |
| Gimpex Ltd v Unity Holdings Business Ltd and others and another appeal | N/A | Yes | [2015] 2 SLR 686 | Singapore | Cited for the principle that the burden is on the person seeking to rely on s 32(1)(j) to prove the ground of unavailability and a mere allegation of unavailability is not acceptable. |
| Tan Yok Koon v Tan Choo Suan and another and other appeals | N/A | Yes | [2017] 1 SLR 654 | Singapore | Cited for the principle that a party may come under personal fiduciary duties to his principal where he voluntarily places himself in a position where the law can objectively impute an intention on his part to undertake obligations of a fiduciary nature. |
| Law Society of Singapore v Wan Hui Hong James | N/A | Yes | [2013] 3 SLR 221 | Singapore | Cited for the principle that the solicitor-client relationship is of such a nature as to warrant the imposition of fiduciary obligations on the solicitor. |
| Alwie Handoyo v Tjong Very Sumito and another and another appeal | N/A | Yes | [2013] 4 SLR 308 | Singapore | Cited for the principle that a company will be found to be the alter ego of its controller if the company is carrying on the business of its controller. |
| George Raymond Zage III and another v Ho Chi Kwong and another | N/A | Yes | [2010] 2 SLR 589 | Singapore | Cited for the elements of a claim in dishonest assistance. |
| M+W Singapore Pte Ltd v Leow Tet Sin and another | N/A | Yes | [2015] 2 SLR 271 | Singapore | Cited for the analysis involved in determining dishonesty. |
| Re Grimthorpe | N/A | Yes | [1958] Ch 615 | N/A | Cited for the proposition that trustees are entitled to be indemnified against the costs and expenses which they incur in the course of their office. |
13. Applicable Rules
| Rule Name |
|---|
| No applicable rules |
14. Applicable Statutes
| Statute Name | Jurisdiction |
|---|---|
| Evidence Act (Cap 97, 1997 Rev Ed) | Singapore |
| Corruption, Drug Trafficking and Other Serious Crimes (Confiscation of Benefits) Act (Cap 65A, 2000 Rev Ed) | Singapore |
15. Key Terms and Keywords
15.1 Key Terms
- Fiduciary Duty
- Breach of Trust
- Alter Ego
- Dishonest Assistance
- Investment Swap
- Asset Protection Structures
15.2 Keywords
- Breach of Trust
- Fiduciary Duty
- Singapore High Court
- Unauthorized Transactions
- Investment Management
16. Subjects
- Trust Law
- Fiduciary Law
- Commercial Law
17. Areas of Law
- Equity
- Fiduciary relationships
- Trusts
- Breach of trust
- Accessory liability