Breach Of Trust Flashcards
Target v Redferns
Loss was caused to Target where a third party acted fraudulently. Redferns, solicitors, had breached a trust by advancing money to a third party early, but the breach would have occurred in any event. Redferns didn’t have to repay the money, loss to the trust would have been the same without the breach, causal connection was needed.
AIB Group v Mark Redler
Compensation was to be measured on a common sense of view of causation of losses flowing from the breach, foreseeability of loss was irrelevant. Principles of traditional trusts did not necessarily apply to bare commercial trusts.
Re Lucking
L committed a breach by entrusting money to another without supervision. His co-trustee was not held liable but was entitled to rely on what L told him unless he had a positive reason not to do so.
Townley v Sherbourne
Trust land was leased out, and rent was paid to the trustees. Money was received by X. Y took no steps to ensure that the money was invested. X misappropriated the money. Y was liable alongside X for allowing the money to remain in X’s hands without monitoring. Replaced by Trustee Act 2000 Schedule 4.
Re Paulings
Beneficiaries may consent to a breach if they are unanimous and of full age and capacity with knowledge and understanding of the breach.
Perrins v Bellamy
Trustees were incorrectly advised that they had a power to sell property where they did not, and then breached the trust by selling. Courts used s61 Trustee Act.
Bristol and West v Motthew
Trustees misapplied property, account had been falsified, remedy was trustee restoring the trust by returning the property itself, property of the same kind or value of the property. Where the trustee has been negligent in making investments the account is surcharged, the trustee is liable to compensate the trust. Where there is a bare trust, the beneficiary is compensated directly rather than the trust.
