Ash v Ash (No 2)

The case of Ash v Ash (No 2) involved the plaintiff, Ash, bringing claims against three defendants for breaches of fiduciary duties. The first defendant was alleged to have breached duties as the plaintiff’s attorney, while the third defendant was accused of breaching duties as a trustee. The plaintiff claimed that all defendants knowingly assisted and benefited from these breaches, with a dishonest and fraudulent design, as per the principles established in Barnes v Addy. The court was tasked with determining whether the defendants were indeed liable for the breaches of fiduciary duties and, if so, the extent of their liability.

The legal issues before the court included whether the plaintiff was entitled to interest on the funds used by the defendants in breach of their fiduciary duties and, if so, whether this interest should be simple or compound. Additionally, the court had to decide the appropriate rate of interest, the date from which interest should accrue, and whether the defendants' conduct warranted an award of indemnity costs to the plaintiff. These issues were considered in light of statutory provisions and relevant case law, including Supreme Court Act 1986, section 60, and Talacko v Talacko.

The court found that the first and third defendants had indeed breached their fiduciary duties and had knowingly assisted in these breaches. Given the dishonest and fraudulent nature of the defendants' conduct, the court awarded the plaintiff interest on the misappropriated funds. The interest was calculated as compound interest, in accordance with Talacko v Talacko, accruing from the date of the breach. Furthermore, the court ruled that the defendants' conduct during the proceedings justified an award of indemnity costs to the plaintiff under the Supreme Court (General Civil Procedure) Rules 2015, rule 63.28.

The court's final orders included the payment of compound interest on the misused funds, indemnity costs to the plaintiff, and further directions for the defendants to account for their breaches of fiduciary duties.