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Attorney General v. Blake | [2001] 1 AC 268 (2001)

An order granting an account of profits awards a plaintiff the profits that the defendant received from the defendant’s misconduct. In Attorney General versus Blake, we explore whether a court may award an account of profits in a breach-of-contract case.

George Blake worked for Britain’s Secret Intelligence Service. As a condition of his employment, Blake signed a contract agreeing not to disclose official information obtained through his employment in a book, either during or after his service. Blake later turned double agent and began providing valuable secret information to the Soviet Union.

Blake ultimately pleaded guilty to various crimes and was sentenced to prison. He subsequently escaped and fled to Moscow. There, Blake wrote an autobiography that related, in part, to his time with British intelligence. Blake granted Jonathan Cape Limited exclusive publication rights in exchange for royalties, including £150,000 in advance royalties. None of the information contained in the book remained confidential by the time it was published.

After Cape paid part of the advance royalties, the crown sued to prevent Blake from receiving further royalties. The vice chancellor rejected the crown’s claim that Blake had breached his fiduciary duties and dismissed the case.

The Court of Appeal affirmed the vice chancellor’s dismissal of the crown’s fiduciary-duty claim. After allowing the attorney general to amend his statement of claim, however, the appellate court granted relief on alternative grounds by restraining Blake from receiving any benefits from his autobiography until further order.

Blake appealed to the House of Lords. There, the crown argued that it was entitled to an account of profits. Specifically, the crown claimed that, based on restitutionary principles, it was entitled to recover all outstanding royalties owed to Blake because they resulted from his contractual breach.

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