Stevens v Hotel Portfolio II [2025] UKSC 28
Stevens v Hotel Portfolio II UK Ltd (In Liquidation) and another [2025] UKSC 28 is of significant relevance for students of equity and trusts law. In a judgment given by Lord Briggs (with Lord Burrows dissenting), the Supreme Court filled in some of the gaps in our understanding of the operation of constructive trusts. The case concerned a breach of trust by a constructive trustee and the attendant liability of a dishonest assistant in that breach. R was a director of the claimant hotel owners (“HPII”). In that function, he owed HPII the core fiduciary duty of loyalty (Mothew per Millett LJ) meaning he could not make unauthorised profit, nor could he place his interest in conflict with that of HPII. HPII sold three hotels to another company. That company was ostensibly owned by the defendant, Stevens, but was really a nominee for R. No-one disclosed to HPII that Stevens was the true buyer. The hotels were sold at market value and, subsequently, were sold on again with planning permissi...
