This case concerned the sale of holiday property in Calabria to people who lived in the UK and Ireland. The purchasers sued Giambrone for breaches of multiple duties. In particular they claimed that Giambrone held their deposits on trust and should not have paid them out in the circumstances. The Court of Appeal upheld the findings of breach of trust, and other breaches of duty.
The Court applied Target v Redfern and AIB Group v Redler in relation to the measure of compensation for breach of trust where the breach also sounded in contract and tort. This was also the first opportunity for the Court of Appeal to consider and apply the analysis of SAAMCO in Hughes Holland v BPE Solicitors. In addition, the Court considered rule 22 of the Solicitors’ Account Rules 1998, and breaches of duty concerning inadequate planning permission and failing to warn the claimants that Calabria was a “notoriously crime-ridden area”. The Supreme Court has refused permission to appeal.
Zia Bhaloo KC acted for the successful respondent.