A person (C) dishonestly assists a constructive trustee (A) in making and then dissipating unauthorised profits, in breach of A’s duties as a constructive trustee. Taken as a whole, these breaches cause no consequential loss to the beneficiary (B): B is in the same position as if no breaches had occurred. Is C nevertheless liable to compensate B? “Yes”, said a majority of the Supreme Court in Stevens v Hotel Portfolio II UK Ltd.1

A (Mr Ruhan) was the director of B (Hotel Portfolio II UK Ltd (“HPII”)) and, in that capacity, owed fiduciary duties to B. B owned the titles to certain luxury hotels but lacked the capital to develop them. A devised a dishonest scheme to refurbish and sell the hotels, in the hope of a large profit. That scheme involved three breaches of A’s fiduciary duty to B.2 First, in breach of the self-dealing rule, A purchased title to the hotels from B, through and concealed by a nominee (C (Mr Stevens)). Second, having refurbished the hotels, A sold them to a third party—realising a profit of £103 million. A did not account for this to B, in breach of the no-profit rule. Third, in breach of the constructive trust under which A held