Cases - trusts

Question 1

Paul v Constance

Answer 1

Express Trust
Facts:
- Property left to separated wife, defacto partner (P) claimed aninterest.
Held:
- Clear intention of trust.
- Words and conduct clearly indicated an intention of C to hold the account on trust for P.
- “this money is as much mine as yours”
- Joint deposits
- P had access to money

Question 2

Westdeutsche Landesbank Girozentrale v Council of the London Borough of Islington

Answer 2

Resulting Trust
Facts:
- Outlines presumptions of resulting trusts
Held:
1. Presumption of trust where A voluntarily pays for property vested in B
2. When A settles express trust but there is an error, presumption goes back to A on resulting trust

Question 3

Gillies v Keogh

Answer 3

Constructive Trust
Facts:
- Ongoing, direct contribution to property
- Owner repetedly asserted the house was soley theirs
Held:
- A constructive trust will not arise when the claimant ought reasonably to have understood they would not receive an interest.

Question 4

Lankow v Rose

Answer 4

Constructive Trust
Facts:
- L&R de facto couple
- L got $500,000 more on separation
Held:
- Constructive trust
- R assisted with L’s business, renovations and supplied living costs

Question 5

Re Mulligan

Answer 5

Express Trustee Duties
Facts:
- Man died and left property on trust.
- Wife had life interest, nephews got remainder
- Wife failed to invest properly for capital growth (focused on short term income)
Held:
- Wife was in breach of impartiality and prudent management

Question 6

Patchett v Williams

Answer 6

Express Trustee Duties
Facts:
- Trustee offered to buy trust property
- Offered a middle price from valuation
Held:
- A trustee cannot buy trust property
- This is a breach of duties

Question 7

Thomson v Allen

Answer 7

Express Trustee Duties
Facts:
- Trustee owned building yacht business was run from
- Trustee also tried to start competing business
Held:
- Both these thing were a breach of duty of no conflict and duty to act in best interest of beneficiaries

Question 8

Phipps v Boardman

Answer 8

Express Trustee Duties
Facts:
- Trust had shares in company that was performing badly
- Solicitor to trustees and beneficiary bought majority shares in the trust
- Used information they had gotten from the trust
Held:
- Breach of no conflict of interest
- Both liable to share any profits

Question 9

Chirnside v Fay

Answer 9

Remedies
Facts:
- Joint venture
- C left secretly and started another joint venture
Held:
- Account for profits may be available
- But allowances can still be made for that spent

Question 10

Spencer v Spencer

Answer 10

Remedies
Held:
- Order for compensation for loss caused from breaches of trust
- Dishonesty test:
1. What did they know of the deed
2. Would an honest and reasonable person have acted the same way?

Question 11

Foskett v McKeown

Answer 11

Held:
- Beneficiary can either:
1. Take a charge
2. Take a proportionate share of assets

Question 12

Re Hallett’s Estate

Answer 12

Held:
- Presumption trustee will spend their own money first
- Beneficiary can either get:
1. property purchased with trust funds
2. Hold it as security for amount of trust

Question 13

Roscoe v Winder

Answer 13

Held:
- Lowest intermediate balance rule

Question 14

Royal Brunei Airlines v Tan

Answer 14

Held:
- Someone can be personally liable as a third party dishonestly assisting

Question 15

Westpac New Zealand Ltd v Map & Associates Ltd

Answer 15

Held:
- Need actual knowledge or wilful blindness for Dishonest assistance

Question 16

Pounamu Properties Ltd vs Brons

Answer 16

Held:
- Constructive notice is enough for knowledge in knowing receipt

Question 17

Jones v Lock

Answer 17

A failed gift cannot be inferred to be a trust as the intention was to make a gift, not a trust.