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Cases Flashcards

1
Q

Knight v Knight (1840)

A

Defines three certainties

(1) Intention
(2) Subject matter
(3) Object

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2
Q

Re: Hamilton (1895)

A

You need to investigate intention of individual testator. You can’t just rely on drafting to understand intent.

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3
Q

Lambe v Eames (1871)

A

Turning point for stricter view of intention and precatory words

Widow was not bound to only spend money on herself/family - she could leave it in her own will because the husband’s will was a moral obligation, not a trust

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4
Q

Comiskey v Bowring-Hanbury (1905)

A

Precatory words

In full confidence = not a trust
I hereby direct = trust

Estate left to wife who was directed to leave all remaining property to nieces upon her death

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5
Q

Paul v Constance (1977)

A

A trust that didn’t use the word “trust”

Unmarried couple - he said “the money was as much hers as his” - showed intent

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6
Q

Midland Bank v Wyatt (1995)

A

Sham

Trust only established when settlor loses interest or has restricted interest in subject matter (and so has trustee) - must be genuine and not a sham

In Midland Bank, money was hidden in a trust to try to escape creditors. Fraud!

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7
Q

Re: London Wine Company (1986)

A

To have a perfect trust, tangible goods must be segregated (Sheep obiter)

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8
Q

Hunter v Moss (1994)

A

To have a perfect trust, intangible goods do not need to be segregated

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9
Q

Sprange v Barnard (1789)

A

Subject matter needs to be certain

“Remaining part of what is left” is not sufficiently certain. At best it’s a gift with a moral obligation.

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10
Q

Re: Golay (1965)

A

Subject matter needs to be certain.

A “reasonable income” is sufficiently certain because “reasonable” is generally understood objectively in English law.

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11
Q

IRC v Broadway Cottages Trust (1955)

A

Fixed trust
Complete list test
All members of the class must be identified for a complete list

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12
Q

Re: Gulbenkian’s Settlements (1970)

A

Power of appointment is valid if you know who is or isn’t part of the class

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13
Q

McPhail v Doulton (1971)

A

Discretionary trust
Is/isn’t test

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14
Q

Re Rose (1952)

A

cf Milroy v Lord

If settlor does everything required of them but need independent third party to complete the transaction, trust is valid

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15
Q

Strong v Bird (1874)

A

Improper transfer of legal title inter vivos
Only perfects legal title

  1. Donor must intend inter vivos gift
  2. Donor must have treated property as belonging to donee
  3. Only thing outstanding is transfer of legal title
  4. Property must survive donor’s death
  5. Donee appointed as executor
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16
Q

Sen v Headley (1991)

A

Donation mortis causa

Guy gives house to ‘wife’ on death bed

  1. Gift must be in contemplation of impending death
  2. Gift must be conditional on donor’s death
  3. Delivery of property to donee
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17
Q

Vandervell v IRC (1967)

A

Tax avoidance

If you don’t fully divest yourself of legal and equitable ownership of trust property, a resulting trust could form (and have tax liability)

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18
Q

Milroy v Lord (1862)

A

If deed is improperly executed, no trust is created

There is no equity in the court to perfect and imperfect gift

To make a settlement valid, settlor must do everything they can to effect the transfer

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19
Q

Grey v IRC (1960)

A

If beneficiary is receiving existing equitable interest, it must be written due to LPA s.53(1)(c)

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20
Q

Re: Tuck’s Settlement Trusts (1928)

A

Certainty of Objects

Beneficiary had to be of Jewish faith. Trust was valid because a rabbi could tell with certainty who was/wasn’t Jewish

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21
Q

Mascall v Mascall (1985)

A

Constituting a trust

Completed transfer form for property sent from father to Stamp Office, which was delayed in processing. Father changed his mind on sale. Held that title had passed in equity (father had done everything he could have done to effect title change - re Rose) so the agreement couldn’t be prevented by stopping legal title transfer

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22
Q

Choithram v Pagarani (2000)

A

Equity will not aid a volunteer but it will not drive to defeat a gift

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23
Q

Bristol and West Building Society v Mothew (1998)

A

Trustees and Fiduciary Duty

A fiduciary acts for another in a circumstance that yields trust and confidence

A trustee is therefore a fiduciary

Fiduciaries must act in good faith
Fiduciaries must not make unauthorised profit from a trust
Fiduciaries must not place themselves where duty and interest may conflict
Fiduciaries must not act for their own benefit or for the benefit of a third party without the informed consent of their principle

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24
Q

Boardman v Phipps (1967)

A

Fiduciary duty

Family solicitor buys shares in a company that the family couldn’t. He makes changes that result in a ton of profit. Family asks for his share - he got the shares through fiduciary duty after all. Court makes him give back money but then awards him money for his services that improved the trust.

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25
Speight v Gaunt (1883)
Trustee duty of care - Court of Appeal A trustee is required to use the same degree of prudence and diligence as a person of ordinary prudence would have done if he had been conducting his own affairs.
26
AIB v Redler (2014)
Trustee duties Solicitor firm had acted for both bank and borrowers. Trustee duties are 1. custodial stewardship; 2. management stewardship; 3. undivided loyalty
27
Learoyd v Whiteley (1887)
Trustee duty of care - House of Lords A trustee should exercise the same care as an ordinary, prudent person would in their own affairs and avoid all hazard
28
Keech v Sanford (1726)
Fiduciary duty - loyalty Landlord wouldn't renew a lease for an infant at request of a trustee, but would renew lease for the trustee (who accepted). When the infant matured they sought profit from the lease. Court ruled that the profit should have been held on constructive trust for the child.
29
Cowan v Scargill (1985)
Trustee Powers Precedes Harries Where a trust is made for a financial purpose, the trustees must act in the best *financial* interest independent of ethical/moral issues
30
Harries v Church Commissioners for England (1992)
Trustee Powers Follows Cowan Trustees may limit investments for ethical reasons if a majority of beneficiaries consent and it will not risk significant financial detriment
31
Nestle v National Westminster Bank Plc (1993)
Trustee Duty It's more important to avoid loss than seek growth of trust funds (as a duty), but not regularly reviewing investments shows incompetence and idleness Trustees must act fairly for all classes of beneficiaries, whether they have life (income) or remainder (capital) interests Case that first flagged portfolio theory What is a suitable? Whatever is consistent with what reasonable trustees would do or with other accepted investment strategies
32
Knight v Earl of Plymouth (1747)
Role of trustee It's a great act of kindness for anyone to accept the role of trustee
33
Re: Pauling's Settlement Trusts (1963)
Advancement Trustees could not advance money for a particular purpose and pay money to beneficiary, leaving the beneficiary morally and legally free to spend it however they wished without any enquiry into the application of the funds
34
Pilkington v IRC (1964)
Advancement/resettlement An advancement can be made by way of resettlement as long as it benefits the beneficiary
35
Westdeutsche Landesbank Girozentrale v Islington LBC (1996)
If D deals unconscionably with another's property, D will hold that property on constructive trust for the claimant. A bona fide purchaser for value without notice would acquire good title in the property bought even if that property had been subject to unconscionable actions (equity's darling) Essential nature of the trust is its regulation of the conscience of the common law owner of property
36
Re Hay’s Settlement Trusts (1982)
Trustees have a fiduciary power independent from the trust instrument. That means they must obey the trust instrument, make no unauthorised appointments, consider periodically whether or not they should exercise their fiduciary power, consider the range of objects of the power, and consider the appropriateness of individual appointments
37
Walsh v Lonsdale (1882)
Establishes doctrine of anticipation - a specifically performable agreement to create or transfer a property right will be good in equity even if not finally effective at law
38
Target Holdings v Redferns (1996)
A trustee would be liable for breach of trust in an unsuitable investment were made which caused loss to the trust Breach and loss must be linked
39
Morice v Bishop of Durham (1804)
Objects must be certain so courts can enforce If object matter is uncertain, trust property is held on resulting trust for the settlor For a trust to be valid it must have at least one beneficiary who can enforce it
40
Re Baden's Deed Trusts (1973)
Certainty of objects; conceptual certainty Several LJs review rule from McPhail v Doulton What does "relative" mean? Next of kin (is/isn't) Traced from common ancestor (evidential certainty not important)
41
Armitage v Nurse (1998)
Breach and tracing Breach may be deliberate or inadvertent; may be injurious to interests of beneficiaries or to their benefit
42
AG for Hong Kong v Reid (1994)
Constructive trust If fiduciary takes/makes bribe, they become in equity debtor for that bribe amount. If they pay back money via personal remedy that squares them.
43
Le Foe v Le Foe (2001)
Constructive trust - single name - family home What is detrimental reliance (Lloyd's Bank)? Could be money. Could be indirect contributions referable to acquisition of property, like managing family economy.
44
Lloyd's Bank v Rosset (1991)
Constructive trust - single name - family home Requirements for constructive trust: 1. Common intention 2. Detrimental reliance ($) 3. Unconscionability
45
Stack v Dowden (2007)
Constructive trust - joint names You can rebut beneficial joint tenancy Look to unequal contribution, discussions, purpose of property, presence of children, how parties arranged finances, character/personality of parties
46
Re Macadam (1946)
Trustee power Trustees may bill in professional capacity/if trust instrument allows Trustees owe single minded loyalty to beneficiaries. If they join board based on appointment power of trust, they cannot keep fees
47
Re Andrew's Trust (1905)
Implied trust If certainty of intention fails, transfer of property could become a gift instead of reverting to settlor
48
Re Curtis (1885)
Implied trust Rebuts presumption that a transfer is a bargain and not a gift for husband/wife
49
Re Endacott (1959)
No trusts can be made for a *purpose* that isn't charitable Animals, graves, public masses
50
Re Denley (1969)
You must have a beneficiary in order for a trust to be valid OK to have a trust for the purpose of people
51
Dingle v Turner (1972)
Charitable trust - poverty Purpose trusts require public benefit (Charities Act 2011 s4) For poverty based trusts, OK if there isn't *public* benefit as trust purpose can be fulfilled
52
Oppenheim v Tobacco Securities Trusts (1951)
Charitable trust - education Purpose trusts require public benefit (Charities Act 2011 s4) Personal nexus test: no class of beneficiaries can constitute section of the public if feature that links them is relationship to individual
53
Caffoor v Commissioners of Income Tax (1961)
Charitable trust Not OK for settlor's family to have priority - they're not a public class. Fails personal nexus test.
54
AG v Ross (1986)
Charitable trust No political causes!!!
55
Roscoe v Winder (1915)
Breach and tracing If trustee pays own money into account, the intention to repay trust money must be proved
56
Clayton's Case (1816)
Breach and tracing Mixed funds in a current account 1. Withdrawals are first in/first out, consistent with payments 2. Trust may get pro rata share of any assets purchased with money from the account *rule of convenience - may deviate from it
57
Re Hallett's Estate (1880)
Breach and tracing Try to presume trustee is honest for as long as possible If trust money is mixed with trustee's own money, trustee is deemed to use his own money first
58
Re Oatway (1903)
Breach and tracing Re Hallett: equity imputes intention to fulfill an obligation Don't assume trustee has spent beneficiary money until its unavoidable Trustee can't make personal claim until they pay beneficiaries Beneficiaries awarded first charge over shares
59
Re Diplock (1948)
Equitable tracing In common law, can't trace into mixed funds Requirements: 1. Fiduciary relationship 2. Identifiable trust property 3. No inequitable result ALSO: Change in position defence against proprietary remedies
60
Gillett v Holt (2000)
Proprietary estoppel 1. Representation 2. Reliance 3. Detriment Remedy: minimum award necessary to do justice Guy leaves school to work on farm he's been promised. Farmer changes his mind. Guy still gets farm.
61
Crabb v Arun (1976)
Proprietary estoppel Claim is to be satisfied by the minimum award necessary to do justice
62
Re Somerset (1894)
Breach and tracing Fact that beneficiary suggests course of action to trustees will not amount to breach. Beneficiaries still trust trustees will act within powers
63
Re Partington (1887)
Breach and tracing Solicitor trustee exercised influence over non-solicitor co-trustee
64
El Ajou v Dollar Land Holdings (1994)
Knowing receipt 1. Disposal of assets in breach of trust or fiduciary duty 2. Receipt of assets which are traceable to claimant 3. Knowledge on the part of defendant that assets are traceable to breach and they're unconscionable to keep *personal and proprietary remedies available
65
What is dishonesty
Dishonest assistance RBA v Tan: conscious impropriety Twinsectra: subjective review of dishonesty Ivey Genting: what is D's subjective knowledge and is conduct objectively dishonest Group Seven: confirms Ivey for civil cases
66
RBA v Tan (1995)
Dishonest assistance 1. Must be a trust 2. Must be a breach of trust 3. Must be active assistance in the breach 4. Stranger must be dishonest 5. No requirement for trustee to be dishonest *Only personal remedy available
67
Brinks Ltd v Abu-Saleh (1995)
Dishonest assistance Assistance must be active, not passive Dishonesty and knowledge are totally separate
68
What is knowledge
Knowing receipt BCCL v Akindele: Does D's knowledge make it unconscionable for D to retain asset Baden: knowledge is actual, willful, or willful/reckless (negligent) Montagu's Settlement: knowledge depends on want for probity (probity meaning honesty or integrity)

Trusts (2 decks)

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