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Equitable compensation adjusted for proprietary recoveries: guidance from consequentials hearing in Mercy Global Consult Ltd v Adegbuyi-Jackson [2024] EWHC 171 (Ch), England and Wales

Published on: 15 February 2024

Published by a LexisNexis Restructuring & Insolvency expert
Legal News
Table of contents
  • What are the practical implications of this case?
  • What was the background?
  • What did the court decide?
  • Case details
Article summary

Mercy Global Consult Ltd (in liquidation) v Adegbuyi-Jackson and others [2024] EWHC 171 (Ch), [2024] All ER (D) 25 (Feb)

What are the practical implications of this case?

Arising on a consequentials hearing after a trial that granted equitable compensation for breach of duty, this ruling clarifies how that compensation should be assessed where proprietary remedies for the same breaches have also been made out. The guiding principle is restorative: the court's role is to return the claimant to the position they would have occupied but for the breaches. To avert over-recovery, the value realised through any successful proprietary claim must be credited in the calculation; absent such credit, the claimant would receive more than the actual loss and thus be over-compensated.

What was the background?...

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