Akita Holdings Limited (Appellant) v The Honourable Attorney General of The Turks and Caicos Islands (Respondent) (Turks and Caicos Islands)
Case ID: JCPC 2016/0064
Jurisdiction: The Court of Appeal of the Turks and Caicos Islands
- Whether an owner of land transferred at an undervalue in breach of fiduciary duty may elect between: (a) following the land and its improvements in the hands of the knowing recipient; and (b) tracing the value of the underpayment into the land and its improvements.
- If a claimant can trace value into land, whether the knowing recipient can be required to be pay by way of profit a proportionate share of the land and improvements.
Mr Hanchell is a Belonger (a citizen of the TCI) and was from 2003-8 a Government minister. In November 2004 the Government granted him a Conditional Purchase Lease ("CPL") over four parcels of land ("the Land"). The CPL entitled Mr Hanchell to purchase the Land at a discount on condition that he carry out stipulated developments. Mr Hanchell substantially undertook that development and subsequently the right to purchase the Land was transferred to the appellant. In December 2006 the appellant acquired the freehold title to the Land, paying only $75,200 of the $150,400 purchase price because of the discount. The purchase price had been set in reference to a 1998 valuation of the land at $150,400. Before the appellant bought the Land, Mr Hanchell had obtained a private valuation that valued the land at $500,000, of which he did not inform the TCI Government. Once the appellant purchased the land it continued to develop it.
Akita Holdings Limited
The Attorney General of the Turks and Caicos Islands
Lord Neuberger, Lord Kerr, Lord Sumption, Lord Reed, Lord Carnwath
Hearing start date
01 Feb 2017
Hearing finish date
01 Feb 2017
Judgment promulgation date
27 Mar 2017
|01 Feb 2017||Morning session|