The fresh new Best Court inside the FHR Western european Ventures LLP (“FHR”) while some v Cedar Resource Partners LLC (“Cedar”) (2014) considers particular two hundred numerous years of contradictory judicial behavior and you will academic conflict. It’s governed you to definitely an excellent bribe or secret fee obtained because of the a real estate agent are stored by agent toward positive trust to own their dominant. This can have a life threatening influence on times concerning the insolvency off good defaulting fiduciary, as prominent tend to currently have priority more than unsecured financial institutions and you can may also be eligible to pursue and you may shade this new unauthorised pros.
Cedar, the brand new Appellant, acted as representative having a trader group as well as partnership business, FHR, throughout the acquisition of a hotel. Therefore, it due fiduciary duties to help you FHR and its own users. Meanwhile, Cedar plus acted towards merchant under a private broker arrangement (the fresh new “EBA”). According to the regards to the EBA, Cedar acquired a secret fee off ˆten mil throughout the merchant in return for protecting a sale of resort towards trader classification.