“Breaking Asunder what Fraud Has Joined Together.” There, David Schmitz analyses the Supreme Court decision in Hotel Portfolio II UK Ltd v Stevens [2025] UKSC 28 which clarified the law on liability of those who dishonestly assist fiduciaries to profit from breaches of constructive trusts, and which removed any doubt that may have remained after the earlier case of Recovery Partners GP Ltd. v Rukhadze [2025] UKSC10 about the liability of such a fiduciary arising from the moment the profits are acquired. David also explains the even more important principles which now govern the question of whether, and if so when, a trustee who causes a loss by one breach and a gain by another can set off the gain against the loss, this case being the first time that the highest court has reviewed Bartlett v Barclays Bank Trust Co. Ltd. (Nos 1 and 2) [1980] 2 W.L.R. 430.
This article first appeared on the Practical Law Dispute Resolution column on 8 October 2025. Reproduced from Practical Law with the permission of the publishers. For further information visit www.practicallaw.com.
